GM is planning massive layoffs. Shockingly, just asking people to quit for money didn't work. A job in this economy is apparently worth more than cash payments of $20,000 to $115,000 and $25,000 toward a new-vehicle purchase. [NYT]
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Would you quit your job for a years salary if the highlight or your resume was "20 years experience putting wiper blades on cars"? Of course not.
On the other hand you could be lucky like two my friends who worked at the assembly plant making the Malibu. They took the payoff of $75,000 and $60,000 and a new car each, after only working there for 3 years. Lucky bastards.
They are not going to take a buy out because they know that if they do they will eventually have to get a job in the private sector where you are paid and remained employed based upon skill and hard work not negotiated union contracts.
@consumed: ...or maybe some of those overpaid executives.
There is a lot more to manufacturing and selling cars than just assembling them. There are tens of thousands of white collar professionals who work at GM like in finance, engineering, marketing. I took a buy out form GM in 2005 as a marketing professional. The economy was decent back then. But today, unemployment is horrible and people who might take the package might not find a job for years which can kill you if you have pre-existing health conditions. Also, if these people have houses and families in Michigan, it's difficult to move. I moved to Minnesota for a job out here and I still have a house in the Detroit area. I'm going to ride it out and sell when prices come back. I'm lucky enough to have a renter right now even if the rental income is not enough to cover expenses.
I imagine that there are people who didn't take the proposed buyout because they needed the job, regardless of the wage reductions simply for the benefits alone. Aside from simply being employed and earning a living wage, being properly insured to be able to care for and support your family is extremely important. If you have a relatively young family or one with a history of medical problems, that insurance is going to come in handy. I don't think I'd take a buyout plus a car unless I had another job lined up.
Maybe they can get rid of some of those overpaid factory labor union workers.