and this bill was supposed to save or create jobs? why did gm have to fire all those workers just to comply to the stimulus bill?

By Nick Bunkley

New York Times

Wednesday, February 11, 2009

Detroit —- General Motors, which must submit a satisfactory restructuring plan to the government next week to keep billions of dollars in loans, said Tuesday that it would lay off 10,000 salaried workers worldwide this year and reduce pay for those who remain by as much as 10 percent.

The announcement comes a week after GM extended more buyout and early retirement offers to its hourly work force and three months after it shed 5,100 salaried jobs, also through buyouts.

This time, however, the cuts are being made through layoffs rather than voluntary programs because the government loan terms prevent GM from using money from its overfunded pension fund to pay for buyout packages, as it has previously.

“There may be some opportunities for people to volunteer, but they’re essentially involuntary,” a GM spokesman, Tom Wilkinson, said. GM, whose sales fell 11 percent globally in 2008, said it plans to cut 3,400 of its 29,500 salaried jobs in the United States, mostly by May 1. Workers who lose their jobs will receive severance payments, benefit contributions and help finding new work. Most would get less money than they would have by leaving the company during last year’s buyouts.

Because GM is using taxpayer money to avoid having to file for bankruptcy protection, it must bring payments to departing workers more in line with what is typical of companies in other industries.

Starting May 1, most salaried workers in the United States will receive what GM characterized as a temporary pay cut. The reductions range from 10 percent for executives to 3 percent to 7 percent for other employees. GM plans to review the pay cuts at the end of this year.

The company said it might also reduce pay for workers in other countries.

GM’s chief executive, Rick Wagoner, has already agreed to work for $1 a year until the company can repay its loans to the government. It has borrowed $9.4 billion so far and is scheduled to receive a third installment of $4 billion as soon as next week.

The latest cuts amount to 14 percent of the 73,000 salaried workers it employs worldwide.

As part of its restructuring, GM has said it needs to eliminate about 31,500 hourly and salaried employees.

Its crosstown rival, Chrysler, which has borrowed $4 billion from the government, also is cutting thousands of jobs. Each of the three Detroit automakers, including the Ford Motor Co., which is not taking federal aid, have eliminated tens of thousands of jobs since 2006.

Most of the layoffs by American auto manufacturers are the results of years of mismanagement and the production of substandard vehicles. Yes, many people are suffering and that sucks, but the American public can't be expected to subsidize American car makers.

They really need to reduce the executives wages by 90%

the layoffs are due to the big three complying to the rules of the stimulus package. and the reason people arent buying american is because of social programs draining the economy of money. nothing is free. some one has to pay for social programs. that someone is the american taxpayer. and if so many people are drawing from the social program coffer and not many are contributing, then we have a reccession of government funds. hence the economy suffers and people lose money and jobs and cant afford to buy an american car. its social welfare that is to blame for this reccession.

punish the ceo's for being accomplished professionals? that doesnt seem fair. how bout we cut blue collar workers salaries and get rid of unions. it is the unions, which by the way, demanding $20 an hour for someone to install a door on a car! that is why american automakers are outsourcing jobs to other countries. blame the unions. a mexican worker will install the same door on that same car for $5 an hour.

I worked new home construction since high school. when the housing market tanked, got a job for a industral supply company. It was a lot less then I made doing construction but a pay check is a pay check. Was finely starting to get out from all the bills accumated by moving and changing jobs. Now there talking about cutting my hours. I giveing up friends, relationships, homes, and cars. Every day I see my standard of living slip anouther notch lower. I live in a roomate's condo and have nothing to call my own but the motorcycle stuffed in the corner of the parking lot. I used to rent my own home, I used to own two cars and a motorcycle. I'm tired of working 40 hours a week just to clear rent. All while a C.E.O. of some jack off company that cooks it's books, gets goverment bail outs for sending work overseas. Then gets a three million dollar bonus. I say kill them all and let god sort it out.

That Loan didnt come from this stimulus. It came from the last one.
It was Bush's last effort...

Perhaps you are correct.

You may have skimmed through the article too quickly though. Although government regulations restrict GM from taking money from pension plans to pay wages, isn't that sort of good? How would you like all your pension money to be down the drain?

Worker lay offs are a given and are not really preventable at this point. The stimulus is here to mitigate losses, not to prevent losses. =\

No where in the article was the stimulus package directly blamed for these layoffs, nor for the tax cuts. These things were going to happen and we all knew it since September.

Not even true. Social programs are not draining the system or at least they were not until everyone got layed off.

The auto makers have mismanaged themselves for a long time. They have over payed their execs and all the other stuff. That is why there was such a stall to helping them. Even with the help provided Chrysler will probably be one of the organizations going down this year. It is not a recent problem for them and it is very sad for the people who have worked for them but it has absolutely nothing to do with social programs.

The stimulus package is requesting accountability out of them. It didn't happen when they were given the first half of the monies and they blew a lot of the money.

People aren't buying American because it costs more. It has nothing to do with social programs. It's about people shopping for the best deal.

On the plus side:

DAVID ESPO, AP Special Correspondent David Espo, Ap Special, Washington

" machinery giant Caterpillar Inc. plans to rescind some of the 22,000 layoffs the firm recently announced — once the stimulus is signed into law."

Now there's some good news.

We have a GM plant in my town. Lets see..GM pays out about 70 dollars an HOUR to its workers in salary and benefits according to thier own statements.

They don't make vehicles that are affordable or reliable.

And, when GM "Lays off" people, they STILL GET 80% OF THEIR SALARIES!. Pay me 30 bucks an hour + medical & dental to put tab A in slot B (a job that I could train a monkey to do)and then let me take off indefinately and still get paid $24/hr. AND, they are eligible for unemployment for the balance. Hell, I'd do it for half that. Most everyone would down here in LA.

IF my GM job is screwing in screw #322 and I dont show up for work, NOBODY ELSE CAN DO IT. Union rules.

GMs layoffs are not because of any money that they received by the government. It's their own doing and that of the unions.

Accomplished Professionals? That's interesting, how did they get in such trouble if they were professionals? Why is it that blue collar works are getting trashed here, they just do their job and they are the ones losing them these days.

The ceo's make the huge bucks and are suppose to be responsible, yet they aren't getting the anger? I don't see what the upcoming stimulus has to do with this, but it's good propaganda for a car company that wants you to blame everyone but them.

the loss of jobs is not due to the stimulus bill, it's due to the mismanagement of funds by GM.

In fact, GM won a provision that will erase a tax liability of up to $10 billion that would have resulted from restructuring efforts, said Senator Debbie Stabenow, a Michigan Democrat.

Yet GM, Ford Motor Co. and other automakers failed to get the full tax write-offs for car buyers proposed in the Senate bill, which might have slowed the plunge in sales that has pushed GM to the brink of bankruptcy.

Because the UAW is evil, period.

Let's see if I understand the OP's point correctly.

Let's say we have this friend, whom we have all watched over the years, spend way over his means 'cause you know, it was 'gimmy', and nothing was outside 'gimmy's reach. You know, the 'ole King 'o the Castle' syndrome!

Friends and I would tell him, when the revenu started to dwindle, and he kept spending, and the kids kept asking, better adjust to reality 'gimmy'! The well might run dry one of these days.

'gimmy' adjust?!?!? Never!!! The world adjusts to 'gimmy', 'cause 'gimmy' is 'gimmy'!!!
... he would reply automatcally.

Well, 'gimmy' came to visit the other day in his Bombardier, 'Global Express' luxury Jet­, with the sole intent to borrow money from me.

He said things were awful. That if I didn't help him out, that it would be the of the 'gimmy' era, and with it the end of AN ERA FOR ALL.

He stated nonchalantely, the monumental sum he wanted to borrow, while telling me all the terrible things that would happen if I didn't accept.

Well, I told him that I might consider lending him some money, but there would be conditions.

... those warnings we all had given him in the past, he was finally going to have to heed them.

... 'you'll need to show me how you can trim your living style to a level that you can afford,

... and explain to me what you are going to do, to keep earning money since nobody seems to care for what you have to offer anymore.

'gimmy' listened and didn't answer, as he he was walking out the door.

'Oh! 'gimmy' do us all a favor, and put an add in the classified for that flying machine of yours. That will be a good start on your new journey.' ... I told him before he borded the helicopter that would take him back to his flying palace.

Well guess what, 'gimmy' and I went ahead with our arrangement, and low and behold, I get this strange call from someone I don't even know, and that 'gimmy' doesn't know either, and this guy starts giving me **** for lending 'gimmy' the money!!!

GO FIGURE!!!

This guy was letting me have it because he felt it was MY FAULT if 'gimmy's kids could no longer go to private schools in Europe, and go skiing in the Alpes.

Not that the guy gave a darn about the kids, it was 'gimmy' shame that he felt for. How do you think that makes poor 'gimmy' feel!?!?! He would repeat over and over again.

It's all your fault!!!

I hate you, you socialist, money lending, helping friends out jock!!!

P.S.: Can someone help out here? I couldn't possibly have this right?!?!?

All winds down to a few individual's who love the notion of greed.

Greed eventually catches up and the company topples down.

And those who where loyal and hard working suffer the most.

Same story repeated over and over again.

When will we ever learn?

Cool, isn't it?

gm doesnt make the salaries, the uaw makes the salaries.
blame the union for overpriced american cars. 20 bucks an hour to screw in a nut and bolt? mexicans will do it for 5 an hour in mexico. thats why ford shut down the ford truck plant in norfolk, va and sent the plant to mexico. blame the unions for causing american workers to be too expensive to hire.