About 170 General Motors workers at the company?s Allison Transmission plant in White Marsh and a closed van assembly plant in Baltimore have tentatively agreed to an early retirement package that GM offered to trim its work force.
“Basically we got about 123 over at the van facility and about 47 from the transmission plant,” said Fred Swanner, president of United Auto Workers union Local 239 in Baltimore, which represents the GM workers.
But Swanner said the numbers will likely change because workers have until Friday to back out.
He said the union was not making individual recommendations to workers on whether or not to accept the offer.
“That?s an individual decision based on someone?s financial condition,” Swanner said.
But he added it is “probably, one of the better offers from GM.”
Under the plan, workers with 30 years or more company experience can get $35,000 lump payment and retire with full pension and benefits. Others are eligible to get as much as a $140,000 lump-sum payment.
GM closed the van assembly plant in East Baltimore in May 2005, but under a UAW agreement, the workers can participate in a “job bank” every day and get close to their regular salary and benefits for two years. The job bank was created to help laid-off workers get jobs at other GM facilities across the country.
More than 800 workers at the van assembly plant were eligible for the buyout.
The buyouts are part of a nationwide plan by General Motors to reduce its labor force by 30,000. GM officials said this week that employee acceptance of the buyout was better than expected.
“Our goal is to structure GM for sustained profitability and growth,” said Rick Wagoner, CEO of GM.
The turnout was so good, in fact, that GM hopes to hit its target of cutting 30,000 jobs by Jan. 1 ? two years early.
Buyouts will cost GM about $3.8 million, but it is expected to save the company more than double that in labor costs in coming years.
“Consideration of the attrition program was an important decision for every worker and his or her family,” Wagoner said.
More detail
» At its peak, the GM van plant in Baltimore employed 7,000 workers.
» The plant was 70 years old when it closed.
» Worker training help from Baltimore County prevented Allison Transmission from closing.
