Unemployment

[Spexvet]

NEW YORK (CNN/Money) - General Motors Corp. is cutting 25,000 jobs and closing an unspecified number of plants over the next 3-1/2 years, CEO Rick Wagoner told shareholders Tuesday, as the world's largest automaker struggles to stem huge losses.

Wagoner, who is also chairman of GM, did not offer more details other than to say the troubled automaker needs to cut capacity by the end of 2008. GM, which has lost $1.1 billion in the first quarter, is facing its worst financial crisis in more than a decade.

The 25,000 jobs represent about 17 percent of GM's U.S. work force, which includes 111,000 unionized employees and another 39,000 salaried staff.

Speaking at GM's annual shareholders meeting in Wilmington, Del., Wagoner said the company's goal is to trim capacity so that plants are running full out. He noted that the cuts announced Tuesday and other moves this year will reduce its production capacity to 5 million cars and trucks by year-end, down from 6 million in 2002.

GM (Research) stock rose as much as 2.4 percent following the announcement, but showed only a 1.4 percent gain in the last hour of trading.

GM also announced plans to buy more components from suppliers outside the United States, and reported it couldn't be sure it would win needed health care cost cuts from the United Auto Workers union.

http://money.cnn.com/2005/06/07/news...0/gm_closings/

GM will cut jobs and buy more from outside the US, and the stock market rewards the behavior.

We are our own worst enemy!

[chm2023]

Here's one of those shall I laugh or cry things: Toyota has announced it will raise prices to try to keep GM/Ford/Daimler-Chrysler from going bankrupt. They are afraid if the US auto business collapses, there will be a strain on US-Japan relations. Ford and Chrysler and Sloan are turning over in their graves!!!


What will be interesting is how far GM will try to cut back retiree benefits. They will b**** and moan about this and of course they'll get what they want. No one evers challenges them about underfunding pensions and health care liabilities. Stupid, stupid, stupid.

[drk]

Makes you wonder whether American business can be trusted to dole out retirement benefits, or we have to go nationalized.

If GM/Ford/Chrysler would just put out a good product, all their worries would go away. I guess we can do nukes, computers, and space shuttles but not autos.

[rsandr]

Makes you wonder whether American business can be trusted to dole out retirement benefits, or we have to go nationalized.

If GM/Ford/Chrysler would just put out a good product, all their worries would go away. I guess we can do nukes, computers, and space shuttles but not autos.

Same here in the Uk except we dont build nukes or computers well either.
Ho hum I suppose the world will always need call centres.

[optispares]

Ho hum I suppose the world will always need call centres.

yes but it,s a long walk to india how will i get home for lunch.

[Spexvet]

Adding insult to injury:

DETROIT -- General Motors Corp. chairman and chief executive Rick Wagoner received a compensation package valued at roughly $10 million for 2004, about 22 percent lower than 2003, the company reported Friday.
Wagoner's cash compensation of $4.8 million last year was 43 percent lower than the $8.5 million the world's largest automaker paid him in 2003. In addition, overall cash compensation for the company's top five executives fell 37 percent versus 2003, GM said in a proxy statement filed with the U.S. Securities and Exchange Commission.

http://www.detnews.com/2005/autosins...tos-166810.htm

[rsandr]

yes but it,s a long walk to india how will i get home for lunch.

You know you love a good Indian, stay there for lunch and just come home weekends.

:cheers:

[RGC_man]

GM will cut jobs and buy more from outside the US, and the stock market rewards the behavior.

We are our own worst enemy!

It's the same the world over.

http://www.autoindustry.co.uk/featur...ver_Background

We want cheap goods, wherever they come from.

[chip anderson]

Such is the power of Unions. Such is the result of not giving the customer what he wants.
Bring back:
1) Vent Windows
2) Flow through ventalation.
3) Stadard Shift on the Collum.
4) Bench Seats.
5) Make Seat Belts and Air-Bags an option, not a mandated expense.
6) Bring back convertables made as convertables, not first made as sedans and modified into a convertable.
7) Bring back the '56 corvette.
8) Bring back the '55 Chevy all models.
9) Fire the lazy employees that won't work or won't do another task when they are without work "Because it's not in my job description."
10) If the Union folks won't put out in these circumstances, hire wet-backs, they work.

[mikeh]

The average wage for GM employees is $54.00 per hour. I think I see the problem.

[chm2023]

Such is the power of Unions. Such is the result of not giving the customer what he wants.
Bring back:
1) Vent Windows
2) Flow through ventalation.
3) Stadard Shift on the Collum.
4) Bench Seats.
5) Make Seat Belts and Air-Bags an option, not a mandated expense.
6) Bring back convertables made as convertables, not first made as sedans and modified into a convertable.
7) Bring back the '56 corvette.
8) Bring back the '55 Chevy all models.
9) Fire the lazy employees that won't work or won't do another task when they are without work "Because it's not in my job description."
10) If the Union folks won't put out in these circumstances, hire wet-backs, they work.

11) Fire the executives who choose immediate profits over investing in newer/better technology.

12) Start building fuel efficient cars. (The Japanese already have a big jump here, surprise!)

I always chuckle when I hear someone blame unions for this sort of thing. I hasten to add, unions have been very greedy, especially back in the good old days. However, let's tell the whole story: management agreed to big wages and benefits because post WW II US industry was pretty much the only game in town for some time. Rather than invest in their enterprises, they bought a bunch of wheelbarrels to take their cash to the bank--so the unions made extravangant demands: so what, the gravy train was never going to stop, right?

True story: my uncle was a professor of anthropology at NYU. He specialized in the industrial age. When steel mills started being torn down in the 70's, he began visiting them and documenting the manufacturing artifacts. What surprised him the most? How much pre war equipment was in place: pre WORLD WAR ONE equipment. Imagine how inefficient these processes had to be, imagine the Japanese and the French and the Brazilians rubbing their hands together in glee. All the unions' fault? Hardly.

PS, please don't use terms like "wet-backs".

[Spexvet]

If it weren't for greedy, heartless executives and owners, unions would not be needed to protect front-line workers.

My brother worked for a company for 19 years, 20 years being the magic number for pension. He was told that his position now required an MBA, so, bye-bye! It's a shame he wasn't in a union.

[rbaker]

No, no, no . . . It's a shame that he didn't have an MBA.

[Spexvet]

No, no, no . . . It's a shame that he didn't have an MBA.

No, no, no ...it's a shame they changed the rules and screwed him.

[chip anderson]

What's wrong with hireing people telling them I will pay you this much, period. Why can't workers buy thier own retirement plans and insureance? Furnishing such things only leaves that much less you can pay the worker. And you get a bunch of employees that are just marking time for retirement instead of concientiously doing thier jobs.


Chip

[coda]

What's wrong with hireing people telling them I will pay you this much, period. Why can't workers buy thier own retirement plans and insureance?

Couldn't agree more, Chip. I have life insurance I don't need or care about and would much rather have even a pitance more cash. I don't need the health coverage I have and frankly would prefer to taylor it to my actual needs. The list goes on and on. Unfortunately we've backed ourselves into a system from which it will be difficult to be extricated. A shift from employer funded health insurance or 401K's to self funded ones will require changes in corporate mentallity, govenment mentallity, employee mentallity and the tax code (possibly the hardes to change).

[Spexvet]

Couldn't agree more, Chip. I have life insurance I don't need or care about and would much rather have even a pitance more cash. I don't need the health coverage I have and frankly would prefer to taylor it to my actual needs. The list goes on and on. Unfortunately we've backed ourselves into a system from which it will be difficult to be extricated. A shift from employer funded health insurance or 401K's to self funded ones will require changes in corporate mentallity, govenment mentallity, employee mentallity and the tax code (possibly the hardes to change).

Employers started offering percs health insurance and pensions to attract the best talent post WW2. Employees didn't demand the benefits, they were offered. It's like the pro sports: the owners pay inflated, outrageous salaries, then whine about their payroll. BTW, what employer is going to increase your salary by the amount they pay for your health insurance and pension?

[coda]

Employers started offering percs health insurance and pensions to attract the best talent post WW2.

How it started doesn't change where it's gone and the problems and deficiences in the current system.

what employer is going to increase your salary by the amount they pay for your health insurance and pension?

The same employer that's smart enough to realize that benefits are how you keep good employees and is willing to shell out the cash in the first place. Those that aren't will end up with crap employees until they wise up.