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GM looks to slim down, save billions

General Motors will offer retirement incentives to 46,000 of its hourly workers next month as part of a plan to cut labor costs, Chairman and Chief Executive Officer Rick Wagoner said during a presentation to analysts Thursday afternoon, according to the Detroit Free Press.

The analysts were encouraged by the move to shore up GM's sinking stock price and said they expected up to 20,000 workers to accept offers to leave.

That would allow the company to hire workers in nonassembly jobs at much lower cost under the UAW contract completed last fall, saving the company billions.

It wasn't known Thursday exactly who will be eligible or what will be offered. GM has 73,000 hourly workers.

Posted by Peter C. T. Elsworth  at 10:00 AM to GM , Unions | Permalink

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