General Motors (GM) has reported a $722 million loss for the fourth quarter of 2007, and a total loss for 2007 of $38 billion, the biggest ever for an automaker. The company attributed the numbers to a slowing vehicle market in the United States and to losses at its finance arm, General Motors Acceptance Corporation. At the same time, GM will offer retirement packages to 74,000 workers represented by the United Auto Workers union. Those eligible to retire can take full benefits and payouts of $45,000 for production workers or $62,500 for skilled tradespersons. An early retirement program with full benefits will also be offered to workers with 26-30 years. A one-time cash buyout of up to $140,000 is available for any GM employees in the UAW who agree to quit and sever all ties with the company. According to The New York Times, GM may replace higher paid workers with new hires making half as much money, as permitted by provisions in last fall's contracts with the UAW.
All contents copyright 2020 Halcyon Business Publications, Inc.