GM, Chrysler Offer Buyouts to All Hourly Employees!

@anniepa (27121)
United States
February 3, 2009 1:28pm CST
Both GM and Chrysler have now offered buyouts to their hourly employees. Chrysler has offered $50,000 to its 27,000 hourly employees along with a $25,000 voucher good towards the purchase of a new vehicle and GM is offering $20,000 in cash and also a $25,000 voucher for a new vehicle. http://money.cnn.com/2009/02/03/news/companies/gm_buyouts/index.htm It is expected more workers will accept these offers than did previous, more lucrative offers because they're scared about the future of the automakers now. What do you think of these offers and would you accept them? Annie
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8 responses
@Aingealicia (1906)
• United States
3 Feb 09
Annie, I am a little confused here. Weren't those the same people who flew in private jets to Capital Hill asking for bail out money? Just a thought on that in my mind. Ainge
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@anniepa (27121)
• United States
4 Feb 09
Yep, they're the ones. I think the next time they came they drove, though. Did they get rid of some of their private jets or am I confusing them with someone else? Annie
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• United States
17 Feb 09
Annie, I am not sure on that one. I know they all had egg on their face, no matter who it was. Ainge
@TLChimes (4842)
• United States
3 Feb 09
My husband makes parts for both company in a small shop. Nobody is offering him or others like him a buy out. Nor is his employer getting a bail out. If he worked for them, then maybe I'd think it was a good idea because I'd see it as a way off the sinking ship. But because I know what it'll mean if they go under, I really am kind of saddened and worried by the news. In less then a year they have gotten rid of 65% of the people who worked in the shop. There are no new jobs for these folks. What will they do?
@anniepa (27121)
• United States
3 Feb 09
I know what you're saying, where WILL they go? It's really scary to even imagine companies like these going under. Someone once said, "As GM goes, so goes America," or something to that effect; those words are pretty haunting now, aren't they? I agree with you about accepting the offer seeming to be a good way to get off a sinking ship but at the same time $20,000 and a new vehicle or $25,000 towards the purchase of one may seem nice right now but if someone doesn't have another job to go to it sure won't last long these days! I sure wish you and your husband the best as ell as others like you. Annie
@max1950 (2313)
• United States
4 Feb 09
if they keep their jobs do they have a no-layoff clause, because in todays world 50,000 per year is medium income and a few xtra for low, so what are they gonna do for work after the money runs out live in their new car ? but it is better than just getting layed off without nothing. they should by a hyundai they have a clause where if you lose your job you can give your car back.
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@anniepa (27121)
• United States
5 Feb 09
I doubt that anyone has a no-layoff clause these days, not one that's worth anything at least! I also don't think GM or Chrysler would take too kindly to someone wanting to buy a Hyundai with their voucher...lol! Annie
@Thoroughrob (11771)
• United States
4 Feb 09
I don't know if I would take it or not. Looking at the way things are going, I would definitely think long and hard about it. They haven't let out all the details of it all, it all needs to be taken into consideration, but if it was fairly good, I think I would probably take it. It isn't doing any good to bail out the automakers, if they don't start at the bottom root of the problem and work their way up. They should have started with the consumers first and then checked out how things were going from there, and then make changes to get things going on their own again. Starting at the top with the banks, they are just defeating themselves. We don't need loans if we have no jobs left here to pay for them.
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@anniepa (27121)
• United States
4 Feb 09
You're sure right about that - a few weeks ago when they were discussing the auto bailout they were talking about how they weren't selling cars because people couldn't get financing, which is true in some cases but more than that is the fact that so many people don't have jobs and many that do don't feel very secure in them. Annie
@suspenseful (40326)
• Canada
4 Feb 09
It all depends on how good the buyouts are and also whether the employees are ready for retirement. Taking a buyout when you are sixty or sixty-five is a lot difference then when you are forty to fifty years old. In the later, you may run out of the $50,000 before you find a new job. I do not know what the hourly rate is for an auto mechanic or assembler, but I would say that it would only last about a year. I would tell them, unless they are retiring, or have another job in the offing, to not take the buyout.
@anniepa (27121)
• United States
4 Feb 09
You're taking the sensible approach which is what I would do also. The risk with this kind of offer is that some workers, even younger ones that have years to go before retirement, may find a lump sum plus a voucher for a new vehicle to be rather tempting but they should definitely think long and hard about it because there's certainly no guarantee there will be a job to go to once that money runs out. Annie
• United States
3 Feb 09
Wouldn't it be great for anyone who has a line on another job!?! Otherwise, that money will be gone very soon and the workers will be among the destitute jobless. The school system I work for has sent us e-mails asking what they can offer to get those of us who are approaching retirement to retire now. Their offers are beyond insulting; they're laughable. Unless there are clear signs of economic recovery, just about everyone has to hang on to whatever job they have.
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@anniepa (27121)
• United States
4 Feb 09
It sure would be gone in no time! You're so right, anyone that has a job had better hold onto it for dear life. Annie
@ZephyrSun (7387)
• United States
3 Feb 09
I think I would have taken the summer buyout offer lol My cousin took that one he had in almost 40 years and he got 150000 plus his full medical benefits for 2 years. I can understand that they want to get the older members out because of the high pay they are getting but the newer employees do not make that much money and if it is offered to them it could be a good idea.
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@rodney850 (2145)
• United States
3 Feb 09
Annie, I read about this earlier today and can't help thinking that it might be a decision made on just how prepared these folks are to retire. Most people who will take advantage of this will be the people who would have retired in the next few years anyway but for some, if not most, it will not be incentive enough to make up for what they would lose in salary. I am planning to retire in about 4 years but that may depend on just how far into recession/depression our nation falls. My wife and I will be among the more fortunate of retirees in that we might actually be able to live on our retirement but if the dollar continues to be devalued by "bailouts" and "stimulis" porkages I might have to put those plans off for a while.
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