37,000 Take GM and Delphi Buyouts
June 23, 2006
With less tha a day left on the option to accept a buyout for early retirement, over 37,000 workers have already filed their paperwork. 28,000 GM workers and 9,000 Delphi workers are all on their last day of work.
The early buyouts are designed to make the GM and delphi business viable, and the fact that this restructing seems to be moving forward can eleviate some concern over production. This bodes well for XM Satellite Radio, the exclusive satellite radio partner of GM.
As concerns over Delphi and GM are aleviated, the street can more accurately forecast production. The agreements that have been reached help to ensure that production at GM will continue as planned. This means that XM satellite radios will be installed as planned.
From Detroit News:
"Under the program, UAW members at GM and Delphi with 30 years or more on the job can receive $35,000 to leave with full benefits and pension, while lower-seniority workers can receive lump-sum cash buyouts up to $140,000 to sever all ties with the company.The offers were extended to all 113,000 of GM's U.S. factory workers and initially went only to 13,000 Delphi workers with 27 to 30 years on the job. But the Delphi program has since been expanded to cover nearly all workers at the company.Some workers have already left under the program, while many are expected to leave July 1. But both companies reserve the right to keep workers on until Jan. 1, 2007."The provision to keep workers on until January can help ease any concerns of a glitch in the system.SSG readers can view the entire article
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