Print

Email story

Comment

Email editor

GM bustles as buyout offer ends

 The number of workers who decide to leave the automaker and a supplier will exceed expectations, union officials say.

By ASSOCIATED PRESS
Published June 24, 2006

DETROIT - At a General Motors Corp. foundry in Defiance, Ohio, a steady stream of workers entered and left the benefits office Friday, turning in paperwork that will change the course of their lives, their company and their union.

The scene was repeated at many plants across the country on the last day for GM workers to decide whether they'll retire early, take a buyout or stay with the nation's largest automaker.

The last-minute surge in signups prompted some local union officials to predict that estimates of 30,000 GM workers taking the attrition packages would either be met or surpassed when the final numbers come in.

"The door is revolving," said Dwight Chatham, president of United Auto Workers Local 211 in Defiance, who was in contact through the day with officials at the plant.

Chatham described the turnout as huge at his local, estimating that 600 or more of the 2,100 workers there would leave the company. Initially he thought half that many would take the packages.

In Flint, Walt Duvernois, president of a 4,200-member local at seven GM plants, reported a similar turnout and said he wouldn't be surprised if the number exceeded 30,000 nationwide.

"If any of the other plants are doing what my home plant is doing today, it's going to be quite a few extra," he said.

No official numbers were available Friday from either GM or the UAW. GM said it would release preliminary numbers Monday. Last week, UAW officials said 25,000 workers had signed up to leave GM and an additional 8,500 had accepted early-retirement offers at Delphi Corp., a former division of GM and its largest parts supplier.

Union officials at Delphi plants in Michigan were busy Friday, with more workers accepting $35,000 to retire, pushing the 8,500 number even higher. Friday also was the deadline for Delphi workers to take the retirement packages offered in March.

"Today it was a steady line of people there to get their paperwork turned in," said Jim Hurren, president of a Delphi UAW local in Flint.

With GM and Delphi combined, union officials estimated that at least 38,500 people will leave the company. And that's just those represented by the UAW.

Earlier this month, Delphi greatly expanded its buyout offers to UAW workers and extended them to 8,000 members of the International Union of Electronic Workers-Communications Workers of America.

Russ Reynolds, president of the other local in Flint, also reported heavy turnout Friday.

He said he thinks 10,000 to 12,000 UAW workers will leave Delphi by the deadline for the expanded packages. The new deadlines have not been set and will vary by plant. The UAW represents about 22,000 of Delphi's 31,000 workers.

Delphi is hiring temporary workers at both Flint plants to replace those who already have retired, the local presidents said.

The new packages for Delphi workers must be approved by a bankruptcy judge because the company has filed for bankruptcy protection. They are similar to the packages offered to GM workers, with buyouts of $140,000 for workers with at least 10 years of service. Those with less than 10 years would receive $70,000 to sever ties with the company. The deal would also expand a preretirement option to include workers with 26 years of service.

[Last modified June 24, 2006, 06:45:28]