News: General Motors to shut five factories and lay off 14,000 workers

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General Motors to shut five factories and lay off 14,000 workers

The company has announced its plan to shut down five plants in the United States and Canada. The cuts will discharge approximately 8,000 salaried workers, including 25 percent of executives.
General Motors to shut five factories and lay off 14,000 workers

Detroit-based, vehicle manufacturer company, General Motors is shutting down its five plants in the United States and Canada. Additionally, the automobile company is preparing to cut up to 14,000 jobs as a part of the restructuring.

The automaker is shifting its focus on autonomous and electric vehicles, and hence the business is going through restructuring.  The restructuring could amount to as much as 8 percent of GM’s global workforce of 180,000 employees. It is reported that GM will reportedly save the company $6 billion by 2020.

The loss includes about 8,000 white-collar employees of GM’s North American white-collar workforce. Around 3,300 blue-collar workers could lose jobs in Canada and another 2,600 in the US. It is also reported that some US workers could transfer to truck or SUV factories that are increasing production.  It is also stated in media that GM has set aside $2 billion to pay for layoffs and buyouts.

The five plants that will close are the Oshawa Assembly in Ontario, Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly in Michigan, Baltimore Operations in White Marsh, Maryland, and Warren Transmission Operations in Warren, Michigan. Additionally, GM will also close two plants outside of North America.

The decision to lay off employees have displeased both the unions in Canada and the US. The Canadian union said it would not accept GM’s decision and the automaker needs to keep up with the 2016 contract negotiations. The plant in Oshawa has been open for 65 years and employs about 2,500 people. 

However, GM CEO, Mary Barra was quoted in media saying, "GM doesn’t foresee an economic downturn and is making the cuts “to get in front of it while the company is strong and while the economy is strong."

 

Image source:  Estein Designe

Topics: Jobs, Employee Relations

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