Janesville workers take up buyout offer
JANESVILLE Roughly one-third of the laid-off General Motors workers in Janesville have elected to leave the automaker under a special attrition program.
The automaker said Thursday that 624 Janesville workers signed up for the program.
GM offered $20,000 in cash and a $25,000 vehicle voucher to all 62,400 hourly workers in an effort to match employee levels with reduced sales.
Nationwide, about 7,500 employees accepted the offer by Tuesday’s deadline. They do, however, have seven days to back out of the deal.
GM’s most recent buyout offer was its third in three years.
In 2006, about 26 percent of the local workforce accepted an offer to leave the Janesville plant in exchange for packages that ranged from $35,000 to $140,000. Last year, 574 workers left with deals that ranged from $45,000 to $140,000.
Both the 2006 and 2008 offers included pre-retirement components that pay benefits as a bridge to full retirement at 30 years.
The just-concluded offer, however, did not differentiate between employees eligible for retirement at 30 years and those who aren’t. Retirement-eligible employees who took the deal will be able to continue their health insurance and retirement benefits. Those who weren't eligible for retirement took the cash and the voucher, surrendered health insurance and retirement benefits and severed all ties with the automaker.
With the 600-plus workers leaving, GM will have about 1,200 still on its books in Janesville, where production of sport utility vehicles ended in December.
In recent weeks, more than 70 local workers have transferred to a GM plant in Arlington, Texas, that continues to build the big SUVs. More than 160 Arlington workers elected to leave through the latest program.
Of the 81 GM facilities where GM made the offer, Janesville had the most employees sign up.
GM said it will fill job openings at other plants with current employees whenever possible. At facilities where new employees are needed, GM will hire individuals at an entry-level wage and benefit structure.
“These employees have many years of dedicated service to General Motors, and I’d like to personally thank them for all they have done for the company,” GM vice president Gary Cowger said in a statement.
Companywide, GM has shed more than 60,000 workers in its three attrition programs.

Apr 1, 2009 at 10:05 a.m.
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iLIKEturtles... "us taxpayers" also pay for welfare, ssi, food stamps, and the list can go on dear. Blame that on the government, not GM workers!
Cry me a river while you're at it.
Mar 31, 2009 at 10:30 a.m.
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Well said Gravedigger :)
My mother worked there 29 1/2 years, 29 1/2!!! And look what's happening now. My dad worked there 16+ years or so ( I believe he was a 96'er) and both of them are HARD working people.
It's the 20% or less lazy workers who have ruined GM worker's reps, and it's to bad that some of the community feels this way about hard working people.
It honesty makes me sick........
I worked there for a year and busted my butt, it's not as "easy" as some think it is. Granted I was only "summer help", I still worked very hard for that pay check, and came home completely beat every night from it.
Mar 30, 2009 at 2:18 a.m.
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Since you dropped the name Smith, lets elaborate on a Smith. GM's downfall started with it's old CEO, Roger Smith. He hand picked Wagoner to continue his way, and now Mr Smith's son is waiting in the wings to resume his father's throne. Goodbye sinking ship!
Mar 30, 2009 at 1:57 a.m.
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Both shifts (except skilled-trades) were laid off from February 28th through March 15th 2009. Both shifts returned to work on March 16th. Since March 16th, we have no one on lay-off, as well as no scheduled lay-offs.
Mar 30, 2009 at 1:31 a.m.
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burbanmom-We are receiving very little information internally regarding the buyouts. The local media is reporting 158 took the current buyout offer. Keep in mind anyone submitting their SAP application by midnight Tuesday March 24th 2009 has a seven-day withdrawal period. I believe anyone “retiring” as of the 2007 UAW National agreement is replaced by new hires. Anyone breaking “all ties” outside of retirement will be replaced by GM transfers. Most (if not all) of the 158 are retirees.-Thank you
Mar 29, 2009 at 8:45 p.m.
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fortwaynegm- how are things there ?do they still have people on layoff and how many took the buyout? Thank-You
Mar 29, 2009 at 8:03 p.m.
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I just read the news that Obama has asked Rick Wagoner to step down. As a 12-year UNION employee of General Motors I believe this is a disastrous mistake. I realize my job is on the line here in Fort Wayne Indiana, but what got GM into trouble has little to do with Wagoner. Wagoner is no more responsible for bringing GM down than Captain Smith was of the Titanic. There is no single “who” to blame here other than like Smith, Wagoner is expected to go down with the ship. Reality is, like the old childhood saying, Wagoner can “turn lemons into lemonade” as far as his future entails. To me it appears that Rick Wagoner’s heart is still in the game at a time no one else’s would be. I think a forced resignation was a gift from the Obama Administration to Wagoner, but to the detriment of General Motors.
Godspeed Mr. Wagoner and thank-you
Mar 28, 2009 at 8:18 a.m.
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Gravedigger - The greed of wall street, those that control the banking system, and self absorbed, country ruining, greedy politicians (hey Mr. Shelby) are more responsible for foriegn wage disparity than the UAW. Those are the ones who are getting richer, while our economy falters. The top 10%(rich) keep getting richer, while smiling at us middle and lower class people arguing over who has got it worse.
Mar 28, 2009 at 6:37 a.m.
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GM workers are some of the hardest working and most productive workers in the world.
GM screwed them and our communities by marginalizing engineering in favor of marketing and banking.
The UAW screwed everyone by refusing to assist foreign workers in raising their wages and sitting on their hands while our production was outsourced, thereby placing 1st world workers in direct competition with 3rd world slaves. The UAW is now allowing foreign corporations to set a poverty wage for American workers. These phonies deserve a long walk on a short pier.
The rest of us should start organizing a Solidarity movement like the real UAW did in the 1930s.... since that's where we are again.
The GM plant should be bought up by the autoWORKERS and community and turned into a Mondragon-like production facility.
Also, contact former Chrysler worker Michelle Mauder in Toledo who has introduced an ESOP plan to buy the Big 3.
Ask the Gazette why this is not news in Janesville?
Mar 27, 2009 at 9:22 p.m.
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mooser, actually if you read these posts on the outrageous wages GM employees got, it is a lot more of their money than anybody else`s!
Mar 27, 2009 at 9:13 p.m.
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well said chad_vader and mooser it is not your money the buyouts in the past have come from the uaw pension fund why would now be any different. This money is being taxed the goverment gets their share plus gm will be responsible for paying back the bailout LOAN with interest i'm sure
Mar 27, 2009 at 8:45 p.m.
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SarahB1 - I have a Canadian dime and a peso if you need it! :)
ttyl1023 - some are mad, justified or not, about stuff. But some of that anger has to do with all the GM misinformation we have had to put up with for quite awhile. I, personally, am glad we got something. Of course, I am glad I am alive every day too. Lot's of GM people are normal people, and just had their dreams and plans flushed down the drain. So some anger about all the complaining about GM people and the SAP can be expected. But everyone has to quit painting all people with the same brush. We are all individuals, with individual problems and views.
Mar 27, 2009 at 8:32 p.m.
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pharm - before they said we would only be taxed on what we used, but this actually helps people. Many didn't do the math, for every $1 we get to keep 68 cents. So no matter if you get taxed on 20 or 25 thousand, you STILL get more money than what is taken. I don't know if it will be a check or a voucher now for the $15,500, but if one did not use all of the $15,500 then he would have been overtaxed. Now why someone would not use the whole $15,500 (you would be giving back money if not)is the question?
Mar 27, 2009 at 8:22 p.m.
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Are you all serious??? GROW UP! GM employees did/do not have it as "great" as you all think. Get over it.
Mar 27, 2009 at 2:48 p.m.
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"Uncle sam takes a big chuck out of both the cash and the voucher right away so its not as great as it sounds it's a nice slap in the workers face."
Are you freaking serious with this comment? You are LUCKY to be getting any offers AT ALL. The greed of some people disgusts me.
Mar 27, 2009 at 2:11 p.m.
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they take the taxes out up front you are left with approx. 15,500
Mar 27, 2009 at 12:30 p.m.
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I`m just curious, anybody that is getting a voucher, if you buy a vehicle less than $25,000 do you get the rest in cash, or lose it? If you lose it your tax liability should go down. Here, a beautiful fully equipped Malibu , 31 mpg, not a hybrid, is going for $16,000. Can someone answer this for me?
Mar 27, 2009 at 11:58 a.m.
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Can I carpool with you SarahB1 ?
Mar 27, 2009 at 11:29 a.m.
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Uncle sam takes a big chuck out of both the cash and the voucher right away so its not as great as it sounds it's a nice slap in the workers face.
Mar 27, 2009 at 8 a.m.
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Has anyone wondered why no one has asked the question--Did GM negotiate in good faith? This last contract which was negotiated to be completed in 2011, put a lot of people between a rock and a hard place when the last buyout was proposed--Do I or don't I?--A lot of people held out to fill the contract so that they could get their retirement years in then retire at next contract. Now with what both GM and the Union are doing to these people is just outrageous. No not everyone is entitled to the benefits that GM offers it employees, but that is what the people from GM's past fought for for their future. I don't work for GM, but can understand the frustration that a lot of these people are now presented with. They thought they had security at least until the end of the contract, but now they may not even make it until the end of the year. How sad. Negotiating in good faith? I DON'T THINK SO. How could GM not have known that they were heading for financial ruin?
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