GM Bans Unscheduled Overtime

M.D. Holloway · 10-20-2008, 01:49 PM

Quote:

GM Bans Unscheduled Overtime
By Tom Krisher, AP Auto Writer
Manufacturing.Net - October 20, 2008

DETROIT (AP) -- General Motors Corp. has told local union officials at two factories that it will not allow any more unscheduled overtime. That could help the automaker further cut costs as it burns through $1 billion in cash every month.

The officials at factories in Orion Township, Mich., and Lordstown, Ohio, say they were told of the ban Friday. They didn't know if it affects just their plants or if it is companywide.

A GM spokesman said Monday that the company has not told employees of any ban but is looking at ways to conserve cash.

The Orion Township and Lordstown plants make small and midsize cars, including the Chevrolet Malibu and Cobalt, and the Pontiac G5 and G6. Those have been some of GM's hottest-selling cars, even as the auto industry's U.S. sales overall fall by double digits.

It is the beginning of the end. You know how this will play out.

This concept is actually in a book I am working on...

Porsche-O-Phile · Porsche-O-Phile's Garage

First step in controlling costs. Something that's been a foreign concept at GM up until now...

dd74 · 10-20-2008, 01:55 PM

The Unions will be all over this...

strupgolf · 10-20-2008, 05:17 PM

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Originally Posted by dd74

The Unions will be all over this...

And that's a big part of the problem.

Rick V · 10-20-2008, 05:28 PM

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Originally Posted by strupgolf

And that's a big part of the problem.

Uh-huh.

legion · 10-20-2008, 06:23 PM

I think even the unions realize this is a matter of something or nothing.

onewhippedpuppy · 10-20-2008, 06:25 PM

Not sure why this is shocking, most companies try to avoid paying their employees overtime. GM is hurting financially, it is a logical step. Can you imagine how expensive 1.5x or 2x pay is for union employees?

David · David's Garage

This seems like a no-brainer. It's not like they're rushing to get vehicles out the door so why would they need any overtime?

Porsche-O-Phile · Porsche-O-Phile's Garage

It's a step in the right direction but sadly I think it's too little too late. The only thing that will save the U.S. auto industry is the complete dismantling of the UAW and allowing the automakers to shed their pension obligations. This will NEVER happen. Because of this, eventual failure (or more likely, buyout) of the industry is a virtual certainty.

lendaddy · 10-21-2008, 05:13 AM

If the general public had any idea what the unions get away with they would go nuts.

They just announced that the plant here in GR is closing next year. Care to guess what the severance (only the cash portion) is?

legion · 10-21-2008, 05:36 AM

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Originally Posted by lendaddy

If the general public had any idea what the unions get away with they would go nuts.

Does it involve a vacuum cleaner?

IROC · IROC's Garage

Quote:

Originally Posted by Porsche-O-Phile

It's a step in the right direction but sadly I think it's too little too late.

Yeah, they should have started this around 1978.

My FIL is a salesman at a Chevy/Cadillac dealership. We talked this past weekend about "business" at the dealership. Basically, there is none.

lendaddy · 10-21-2008, 05:54 AM

No one wants to guess on the cash severance? Come on, it's fun

David · David's Garage

Four weeks pay per year of service?

lendaddy · 10-21-2008, 06:11 AM

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Originally Posted by 125shifter

Four weeks pay per year of service?

Nope.

lendaddy · 10-21-2008, 06:34 AM

Ok, no one else wants to play.

The answer is four years pay at 85%.

That is years....not months.

Big Ed · 10-21-2008, 07:10 AM

Quote:

Originally Posted by lendaddy

Ok, no one else wants to play.

The answer is four years pay at 85%.

That is years....not months.

******* hell. Wonder why they are hemorrhaging so much cash?

lendaddy · 10-21-2008, 07:19 AM

Yep, the base pay here (this is from a couple years ago)for skilled jobs was $35 an hour and $25 an hour for unskilled (I think those are the three guys at the welcome gate).

So even without OT or vacation or other "extras" these guys are getting $247,520. and the three guys at the gate are getting $208,000

onewhippedpuppy · 10-21-2008, 07:44 AM

Quote:

Originally Posted by lendaddy

Yep, the base pay here (this is from a couple years ago)for skilled jobs was $35 an hour and $25 an hour for unskilled (I think those are the three guys at the welcome gate).

So even without OT or vacation or other "extras" these guys are getting $247,520. and the three guys at the gate are getting $208,000

Rough life, huh? I see the same thing in Wichita with the aerospace industry. With $40k in college student loans, I love seeing the blue collar guys go on strike protesting the fact that they get higher pay and better benefits than I do.

IROC · IROC's Garage

One of my favorite stories is from back when I graduated from college and was working as a mechanical engineer for TVA. I was making $28k a year and thought I was rich (this was 1987). We had a secretary in our group who was right out of high school. Her boyfriend was also right out of high school and had no marketable skills. About this time, GM was building the Saturn plant in Spring Hill, TN. Our secretary's boyfriend ended up getting a job at the Saturn plant as a "helper" (totally non-skilled, entry-level go-fer type of position) in the paint department for over $30k a year. Blew my mind.