Pay Cuts Will Affect 25% of GM Workforce

New 'non-core' classification nearly halves $51/hour pay

By Kevin Spak, Newser Staff

Posted Oct 4, 2007 11:19 AM CDT

(Newser) – UAW’s new contract with GM will mean lower wages for a quarter of union employees, Bloomberg reports. The 16,766 jobs labeled “non-core” in the deal would drop to $28 an hour, down from $51 an hour. “This is the beginning of the end of the well-paid UAW workers and probably the well-paid manufacturing worker in America,” said one labor professor.

Current workers' pay won't be cut, but a “special attrition” program will encourage them to leave or retire. GM will also bring outsourced work in-house at the new non-core rates. So far, six UAW locals have approved the deal. Investors meanwhile continue to reward GM for closing the labor gap with Toyota and Honda, as its stock rose again yesterday.

In a photo provided by General Motors Corp., assemblyman Marion Glasscoe works on a 2008 CTS at the Lansing Grand River Assembly plant in Lansing, Mich., Thursday, Sept. 27, 2007. If 74,000 United Auto... (Associated Press)

Jason Beeman works on the assembly line at the General Motors Powertrain Warren transmission plant in Warren, Mich., in this June 1, 2006 file photo. The United Auto Workers may have won job security... (Associated Press)

United Auto Workers President Ron Gettelfinger shows off a copy of the UAW/GM Report during a news conference at the UAW Solidarity House in Detroit, Friday, Sept. 28, 2007. Gettelfinger said the union... (Associated Press)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Car Sales Jumped 14% Last Month

Chrysler, VW saw huge gains

(NEWSER) - Americans may be worried about the economy, but they still need to get where they’re going. Auto sales beat expectations last month, rising 14% to 994,721, their fastest sales pace since August 2009, reports the AP . Chrysler led the pack: The automaker’s sales jumped 45%, Reuters reports. Close behind was Volkswagen, whose sales soared 41%; Hyundai, Nissan, and Ford also saw double-digit gains. More»

US Automakers See Sales Increase in May

Ford, GM have best month of 2009

(NEWSER) - Some actual good news for the auto industry: All three US automakers saw sales of new cars jump from April to May, reports the New York Times. Granted, sales are still way down compared to last year, but the month-to-month leap offers a glimmer of hope among the bankruptcy headlines. Ford did best, with sales up 20% from April and down 24% from the previous May, the smallest yearly decline among all major automakers since October. More»

GM, UAW Cut Deal on Labor, Health Care

Tentative pact may save struggling auto giant more than $1B

(NEWSER) - Monitored by the Treasury department, General Motors and the United Auto Workers have reached a tentative deal to modify conditions of their labor contract and retiree health care trust, which could save the flatlining automaker more than $1 billion. Still, Chapter 11 bankruptcy remains likely for GM, and union reps must approve the pact, the Detroit Free Press reports. More»

Honda Hops on Bailout Bandwagon

Japanese automaker to seek government loans to pay for customer loans

(NEWSER) - With American credit markets dried up, Honda is seeking money from the Japanese government to help finance auto loans in the US, reports the Wall Street Journal. The Japanese government is planning to offer $5 billion through a semi-governmental organization, and Toyota is planning to seek funds as well. More»

Auto Sales Take a Drubbing in December

Chrysler off 53%; GM, Ford, Toyota, Honda all down more than 30%

(NEWSER) - Chrysler's sales were off 53% in December compared to the same time last year, the Wall Street Journal reports today, with Ford's off 32% and General Motors down 31%, further indicating a steep decline in US demand for cars. Foreign makers took an even harder hit last month: A 35% decline at Honda propelled that company to its first annual loss since 1993, Bloomberg says, while Toyota fell 37%. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Pay Cuts Will Affect 25% of GM Workforce

New 'non-core' classification nearly halves $51/hour pay

OTHER STORIES ON OUR RADAR

United Auto Workers • Toyota • General Motors • Honda • labor costs

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Car Sales Jumped 14% Last Month

Chrysler, VW saw huge gains

US Automakers See Sales Increase in May

Ford, GM have best month of 2009

GM, UAW Cut Deal on Labor, Health Care

Tentative pact may save struggling auto giant more than $1B

Honda Hops on Bailout Bandwagon

Japanese automaker to seek government loans to pay for customer loans

Auto Sales Take a Drubbing in December

Chrysler off 53%; GM, Ford, Toyota, Honda all down more than 30%

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Pay Cuts Will Affect 25% of GM Workforce

New 'non-core' classification nearly halves $51/hour pay

Bookmark & Share

OTHER STORIES ON OUR RADAR

United Auto Workers • Toyota • General Motors • Honda • labor costs

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Car Sales Jumped 14% Last Month

Chrysler, VW saw huge gains

US Automakers See Sales Increase in May

Ford, GM have best month of 2009

GM, UAW Cut Deal on Labor, Health Care

Tentative pact may save struggling auto giant more than $1B

Honda Hops on Bailout Bandwagon

Japanese automaker to seek government loans to pay for customer loans

Auto Sales Take a Drubbing in December

Chrysler off 53%; GM, Ford, Toyota, Honda all down more than 30%

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?