7500 GM workers set to take early retirement

March 26, 2009 – 7:14 pm – No Comment

7,500 workers equals to about 12 percent of GM’s total workforce (not including other manufacturers in the supply chain, of course).

GM’s incentive to retire early was $20,000 and a $25,000 voucher for the purchase of a car.

The workers who put in their early retirement acceptance have seven days to resend their decision, many of which can resend by March 31. March 31st is an important day for GM and Chrysler because that is the day they must provide a restructuring plan to the U.S. government if they wish to continue receiving loans.

In this case, I do believe that it was the right thing for the workers to take the compensation package. If GM has to restructure enough, they will end up being forced to lay off at least 7,500 employees…at least. This way, if you thought your job was in jeopardy, you could get $20,000 and a new car…it’s kind of like winning on Wheel of Fortune.