Over 33,000 factory workers at General Motors and bankrupt former subsidiary Delphi have accepted buyout offers, exceeding early expectations, the United Auto Workers union said.
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At a news conference to mark the end of a four-day union conference, UAW President Ron Gettelfinger said 25,000 General Motors and 8,500 Delphi Corp. workers had taken the early retirement incentives, Reuters reported.
The number of blue-collar workers who accept the early retirement incentives has been closely watched as an indicator of the success of GM’s turnaround efforts, the news agency noted. GM has offered a sweeping package of buyouts ranging from $US70,000 to $140,000 to more than 125,000 unionised factory workers in a bid to reduce costly benefits for an aging work force.
The offer is on the table for consideration by workers until next week.
According to Reuters, GM has not offered an official update of the number of its workers who have taken the offer, but company and union officials said in late May that the total had topped 20,000 then and was expected to reach 30,000 by the deadline.
The news agency noted that, in the mostly closely watched decision of the UAW convention, Gettelfinger said he had appointed veteran union leader Cal Rapson to head negotiations with GM and Delphi heading into a crucial round of contract talks next year with all of the US auto makers.
Rapson reportedly has long experience with GM, going back to his joining a Chevrolet engine plant in 1965. He was involved in 1990 and 1993 contract talks with GM as an administrative aide.
Bob King, the UAW’s most senior vice president, was given responsibility for negotiating with Ford as well as industrial parts suppliers while General Holiefield, elected to his first four-year term as vice president, was given responsibility for talks with Chrysler, Reuters said.
