GM pays workers early to calm bankruptcy fears
May 29, 2009 by George Skentzos
With General Motors constantly making headlines predicting the company’s demise, it is understandable that its employees may not be all that confident about job security.
In an effort reassure them that their wage payments would not be affected by any bankruptcy filing, GM has paid around 90,000 US employees three days early this week.
Normally GM employees would be paid on Friday; instead the automaker issued pay checks on Tuesday.
“It was done to reassure employees worried about bankruptcy,” spokesman Tom Wilkinson said.
It is even more likely that GM will need to file for bankruptcy following a failed bond-exchange offer from investors holding $27 billion of its debt.
Analysts now expect GM will have to file for bankruptcy by the end of the month, although the company does not expect this to interrupt its payroll payments.
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This may well be the last media release before “the big one”.
I just wish that they would get on with it and sort out their mess, including the overseas interests.
BTW the “news” on Chrysler has gone very quiet of late. Does that mean that they’re trading through the process OK?
Here bloody here DE………..sick of hearing about it.
i was stunned to find out that gm haveing been paying their employs many many years after they had left the company…that is unheard of here….once your gone your GONEEE…look after yourself…so it should be…you dont get anything for nothing…
well obviously gm and chryslers ex employees do….hmmm wonder why they went broke…hmmmmm…i wonder…
Sorry meant to type “have BEEN” sorry might be fast typer but accuracy is not…
I hope all the employees remember to take any personal items home with them today. I would bet on all the doors being padlocked on Monday.
The social security system is different in USA Marcoz, my understanding is that instead of the government being responsible for pensions like in Australia, former employers have to pay. Its basically why American workers total wages per hour come up to be so much, because their salary must include future pension payments etc.
Marcoz, that has been the main bone of contention in this whole government support issue. The three detroit factories were pushed into this situation by the Unions and the Government of the time (during the 70’s IIRC but stand to be corrected). They have been supporting retired workers for over a generation now and as such their outgoings have been horrendous. This is why, when reading abou the headway being made by Ford you will constantly see reference to concessions by the UAW. THe southern state factories were set up with one main condition being NO UNION access. Hence the employee cost per hour difference quoted. Add that to the state issued handouts of ay Mercedes in Alabama (180,000 / wage generated at the plant) and it becomes easier to see the problems of the D3. Add to that some very poor managerial skills and shocking decisions and you get the GM / Chrysler scenario.
Before the rabble claim poor cars etc, both GM and Ford have vehilces rating in the top five for JD Power and Enviromental ratings, and their respective Pickups to the best selling vehicles per annum list consistantly, so it not a product issue.
Crap company + crap cars = bankruptcy
I feel sorry for the workers though
Quote ” Not Long Now Says:
May 29th, 2009 at 6:15 pm
Att : Wheelnut and Bavarian Missile … THE BIG DAY IS COMING and i carn’t wait !! ”
Yeah me neither Soon/Sob/NLN…….be great for GM to move forward !
This is a very bad news. I already feel bad for the workers, it’s like GM is saying goodbye to them, the way they are already giving the workers wage payment.
Nah! It will continue (news about GM) for months.
Hopefully it will be better news.