Thursday, June 22, 2006
Today is the eve of the looming deadline for thousands of General Motors workers to decide if they are going to be part of one of the biggest employee buyout programs in corporate history. The offer in an oversimplified nutshell:
All hourly GM workers are eligible for some form of incentive, whether it's a $35,000 retirement bonus or a $140,000 lump-sum buyout. Retirees would get to retain their health care plans, but those who take the buyout would relinquish their pension and health care plans.
Workers must notify GM of their decisions by Friday.
The decision has many GM workers torn -- interesting descriptions of the risks and rewards being weighed by the workers faced with this decision (and they are both financial and psychological) are here and here. (Ironically (or not so ironically), today's news reports that GM's "turnaround" has lead to a good Q2).
So, if you were a long-time GM employee eligible for the $140,000 lump sum payout, would you stay or would you go? It is estimated that 20,000 employees will accept the offer.
[Meredith R. Miller]