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GM to dismiss about 4,000 salaried workers



3rd February 2019 | 1:58 PM

by AFP

Media reports estimated the total vacancies of employees and unions of about 14,000, including approx. 6,000 unions. – Reuters file picture


New York: General Motors is expected to dismiss about 4,000 salaried workers during a reorganization announced last year. One person familiar with the case said Friday.

The redundancies are part of a cost-saving plan GM, announced in November, which will cut 15%. of its paid and contract staff and the shutter seven plants, including five in North America.

Media reports estimated the total cuts of employees and unions of about 14,000, including about 6,000 unions. GM said the actions – critically criticized by US and Canadian politicians – would save $ 6 billion in costs.

GM has not calculated how many workers would be forced to terminate as a result of the cuts.

A GM spokesman refused to comment on the timing of the redundancies after CNBC and Detroit News reported that they would start Monday to come ahead of the company's earnings report.

Spokesman said "we will communicate with our employees first."

About 2,300 paid workers opted for voluntary buyouts, while an additional 1,500 contract staff were deleted, the source said, describing the estimate of 4,000 dismissed staff as reasonable.

GM officials have said they expect to add 2,700 jobs to various US factories across and that US employees would be offered transfers.

The automaker also works with Canadian universities and officials to help some 3,000 workers affected by the closure of an Ontario facility a GM spokesman said.

Brian Rothenberg, a spokesman for the United Arabian workers, did not say that all workers eligible for transfers would be able to move for family reasons.

"Everyone is influenced", Rothe said nberg. "We don't know how many will be dismissed if we move."

GM has defended the cuts as crucial to placing the company in the long term, and savings from the reorganization increased its forecast for 2019.

But the movements were condemned by politicians, including US President Donald Trump and Canadian Prime Minister Justin Trudeau.


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