GM workers likely to have options
JANESVILLE — Long-time General Motors employees who passed on the automaker’s recent early retirement offer only to learn that the Janesville plant will close by 2010 might get another chance.
That’s because it’s common for the automaker to offer attrition packages at plants targeted for closure, a GM source said Tuesday.
“It’ll probably be done six months or three months in advance of the closure, and it will likely be for somewhat less money,” he said.
GM spokesman Tom Wilkinson said that while layoff procedures are clearly spelled out in the automaker’s contract with the United Auto Workers, any discussion about a targeted attrition program for workers in Janesville is premature.
GM is wrapping up a recent attrition package that offered retirement-eligible workers—those with 30 years or more of service—a cash incentive to retire. The recent incentives were $45,000 for production workers or $62,500 for those in skilled trades. The program also had a pre-retirement component that pays workers with 26-29 years of service monthly benefits as a bridge to full retirement at 30 years.
Under both cases, employees will receive their GM pensions—about $3,100 a month at 30 years—and their health care benefits.
Whether or not the targeted attrition program includes a cash buyout and sever-all-ties-with-GM component for younger workers is uncertain.
Late last year, GM targeted a specific attrition program to about 5,200 hourly workers at its service parts and operations centers and at factories in Pittsburgh and Massena, N.Y., which the automaker had targeted for closure or sale.
That package was similar to a nationwide attrition package offered in 2006, when 34,000 hourly workers left the automaker in exchange for packages ranging in value from $35,000 to $140,000.
Some workers, however, will not sign up for the expected attrition program and will ride out GM’s stay in Janesville until the lights go out—and even beyond.
When the plant closes, the remaining workers will be laid off and will receive state unemployment compensation checks that in most cases will be at the maximum of $355 per week. Supplemental unemployment benefits that were negotiated into their national contract will boost that state check to the level of more than 90 percent of the worker’s weekly take-home pay.
When state unemployment runs out after 26 weeks, SUB pay will increase to cover the loss of unemployment and continue for another 22 weeks.
When 48 weeks of unemployment and SUB pay are exhausted, the workers will move into GM’s Jobs Bank and return to full pay for a maximum of two years.
While in the Jobs Bank, workers must accept job transfers to other GM facilities or be cut completely from the automaker’s wage and benefits programs.
As GM cuts or adds jobs at its plants around the country, the likelihood of a transfer is largely dependent on a worker’s seniority. Those seniority levels should rise as more than 19,000 of GM’s 74,000 hourly workers plan to leave under the recent attrition program.
Ultimately, GM workers who choose to remain on the payroll will keep their health insurance benefits and receive a minimum of 90 percent of their take home pay until 2011, when the United Auto Workers and GM negotiate their next national contract.
“Employees in Janesville will likely have options, whether they choose to retire, transfer to another plant or stick around to the end,” the GM source said. “If they want to keep working, there should be a job somewhere in GM for them.”
Workers at local GM suppliers such as Lear Corp. and LSI, however, won’t have the same options. They’re not likely to see a targeted attrition program in advance of the GM plant’s closure.
What they will face is a minimum of 26 weeks of state unemployment pay that will max out $355 per week. SUB pay isn’t part of their UAW-negotiated contract.
Affected workers at GM and LSI may be eligible for Trade Adjustment Assistance that would extend benefits for up to 130 weeks.
TAA status is granted when workers are displaced by global competition. In the past, some auto-related layoffs have been approved for TAA, which basically continues to pay unemployment benefits when the state program has expired.
To receive TAA benefits, workers must be enrolled in some sort of job training program and do job searches. TAA allows up to $15,000 for additional education and re-training for eligible workers.
Jun 8, 2008 at 7:32 p.m.
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There are our brothers and sisters in the middle east fighting and losing there lives for our country and what kind of benefits do they get from G.M. for putting their life on the line.
When G.M. fights for our freedom and puts their life on the line for America. I will have the utmost respect the them and do everything I can to help. This is directed toward all those uppty G.M. employees who think they are better then the rest of us we all deserve the same benifits as you your not any better then us working at anyother job and we also have families to take care of or maybe our children aren't important enough...UUUMMM!!!
Jun 6, 2008 at 1:30 p.m.
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Why the ignortant insults. My mother achieved a masters as a Rn in her 40,s. I a former Marine, have no formal education and make a very good living. Why are you (a gmer) such an arogant pig. Most people would look at this as an opportunity for growth. A chance to do something maybe you always wanted to. Your going to have pleanty of money, more than most hard working people. Just because you worked at GM that does not give you some sort of entitlement, nor does it make you any better than anyone else who busts their hump 5,6, 7 days a week. Learn some manors and be thankful for what you have had. Loose the ignorant arogant attitude and you will find more compassion from the community.
Jun 5, 2008 at 4:19 p.m.
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Don't you think it's a little too late for an education after 30 years?? I guess if I had an education and wasn't making $30 an hour I'd be a little jealous too.
Jun 5, 2008 at 2:54 p.m.
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85% of your pay is still more than most people make in 2 monthes
Jun 4, 2008 at 9:34 p.m.
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I only made $8.50 at Accudyne. hrmph
Jun 4, 2008 at 9:30 p.m.
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Anyone remember when Accudyne closed? Yes we only made $10.00 - $20.00 an hour but the bottom line is when you lose your job it is DEVASTATING!!!
Jun 4, 2008 at 9:14 p.m.
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I think it would be easier for someone making $10 an hour to find a job with comparable pay. GM employees didn't march into the plant and say-I'll work for you but I want to make $30 an hour. Don't blame the employees for making 'too much'.
Should the GM employees seen this coming in 1980 when the rumors of the plant closing started? Or a decade later? Or a decade later? My dad worked for GM for 30 years. Some have worked there for 50. Who is going to turn down a job because it may not be around forever?
Jun 4, 2008 at 8:47 p.m.
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Will Zachows be allowed to transfer too? Maybe the other plants have thier own bars on site and if thats the case will Zachows be placed in the job bank too?
Jun 4, 2008 at 7:18 p.m.
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Darius... The state did the same thing when Parker Pen closed - it is not preferential treatment for GM & it's suppliers...
Jun 4, 2008 at 6:47 p.m.
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I have talked with someone at the Janesville plant and I guess some are already signing up to transfer so they definately do have that option. I think to move to a newer plant would be a smart thing to do if you do not have a home to sell. I remember many when the Ft. Wayne deal went down that had one heck of a time selling their homes. Also some greeat viewing is a documentary about "Who Killed the Electric Car?" I bet GM wishes they never would of pulled that big blunder now! They would of been miles ahead of Toyota and Honda now.
Jun 4, 2008 at 5:29 p.m.
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Why is it a priority by the county or state to make so sure that GM employees are taken care of? Nothing against any of these people. But, doesn't someone who makes $10/hr that's lost their job matter? Shouldn't they have the same consideration? What should happen is GM people who are losing their jobs should get free counseling. It's one huge lifestyle change going from $27/hr. to $7/hr. Unless you were one of the wise one's who dug your well before you got thirsty. Stress is a huge factor in causing diseases. Calling all doctors.........
Jun 4, 2008 at 4:41 p.m.
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Despite the local misconception, life holds no guarantees other than death and taxes. So yah, moving is an option.
Jun 4, 2008 at 4:19 p.m.
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why not close the plant in mexico and move those jobs back to the states???? hmmmm
Jun 4, 2008 at 3:59 p.m.
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Options?
Move and leave everything you know and love or stay and struggle to find a job.
How is that even an option?
Jun 4, 2008 at 3:36 p.m.
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Gazette reporter Jim Leute here. The story doesn't refer to gross pay. It says workers will get "more than 90 percent of (their) weekly take-home pay." That's commonly referred to as net. GM and UAW sources have routinely confirmed for us that with unemployment compensation and SUB pay, workers get about 80 percent of their gross pay and 92 or 93 percent of their net pay. While it might differ slightly for different workers, we're confident in the numbers, and we phrased it conservatively at "more than 90 percent" of take home pay.
Jun 4, 2008 at 3:11 p.m.
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Dear Gazette and posters... please get the numbers right. As a GM employee, one will only get around 80-85% of their regular pay bewtween sub pay and unemployment, and that's BEFORE TAXES. Where all of you get this 90% figure amazes us all. I am not complaining, I am just correcting what we really do receive.
Please feel free to hate on GM all you want. This is going to be a huge blow for Janesville and Rock County. Although Janesville is much better positioned today than they were in 1985 with the Ft Wayne scare, it is still going to hurt the entire community, from retail sales, automobiles, restaurants, and yes, Mercy, Rock County's largest employer. They shall be next for layoffs due to declining membership.
Jun 4, 2008 at 1:34 p.m.
Jun 4, 2008 at 11:06 a.m.
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hey lets not forget that there is more than just GM,LSI and Lear going to be hurt by this. i get sick and tired of everyone always says poor GM,LSI,Lear. what about Allied and the whole city. because the whole city no matter what anyone wants to think will be effected by this.
Jun 4, 2008 at 10:21 a.m.
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"Ultimately, GM workers who choose to remain on the payroll will keep their health insurance benefits and receive a minimum of 90 percent of their take home pay until 2011"
If anyone believes GM or any big corporation in the "GLOBAL" marketplace will keep retiree health and pension benefits intact in a "GLOBAL" marketplace they probably also believe in the tooth fairy, Easter Bunny and Santa Clause. I predict GM will file for bankruptcy allowing them to restructure and shed their pension responsibilities (like so many other big "GLOBAL" companies have done). The Caterpillar retiree health fund remained solvent for 7 whole years after it was transferred to the Union to manage it. The GM employees should talk to Caterpillar or Allis-Chalmers retirees if they want a realistic look at their future. I bet the UAW members who made all those concessions last fall thought they could trust GM to keep their Janesville plant open. Anyone want to place a bet on what property values will be in Rock county in about 4 years? How many tax liens? Will the City of Janesville be able to afford to plow the streets or will they make the Palmer Park wading pool a priority? And what about the thousands of workers amployed by places like Leer? The railroad workers and truckers and suppliers who will lose their jobs? Of course if GM were run by competent management they would not have allowed Honda and Toyota to take away market share. GM chose not to build small cars that people want. The plant closing is very sad on so many levels.
Jun 4, 2008 at 10:06 a.m.
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So if what I'm reading in this article, if workers aren't eligible for or don't take a buy-out, they'll have 48 weeks at 90% of their previous take home pay. So between the plant staying open for another year and a half and almost a year of unemployment, these people have 2 1/2 years to find other work, take classes leading to employment in other fields, etc. Doesn't sound too unreasonable to me that most would be able to find something in that time.
Jun 4, 2008 at 9:51 a.m.
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Kind of like a stab in the back for Lear employees who get nothing but unemployment! Sure, relief for GM and LSI, but not Lear.
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