Thursday, March 23, 2006

My 2 Cents on The GM Buyout Offer...

I thought I'd offer my thoughts on the GM Buyout for union employees. Admittedly, I am looking at this from 40,000 ft and everyone's individual situation needs to be analyzed independently, but...

If I were a worker with 10+ years of experience on the job and GM was trying to offer me $140k to walk away, that would be pretty tempting. The two greatest concerns facing these workers have to be:

1) If I leave GM what skills do I have that will enable me to get another job and
2) If I stay how do I know GM is going to survive through 2010.

The buyout offers some measure of comfort that an employee could use that lump sum as a safety net while he/she sought new employment. I understand there is a GM plant in the North Country and my suggestion to workers considering a buyout is that you may need to relocate to new part of the country in order to find comparable employment.

On the other hand, I've witnessed GM's steady fall from grace for 15+ years. I remember in 1996 hearing a colleague refer to GM as a bank and health insurance company that made inferior cars. That's a harsh assessment, but it's been pretty accurate. GM has lost a generation of buyers, most 18-34 year-olds could not name 5 GM cars but they could tell you every car that the HUGE guy has on sale this week. If a worker chooses to stay with GM, I'd suggest that they prepare themselves for the possibility that GM, as we know it, may not exist in 5 years.

Like I said, just my 2 cents.....

1 comment:

paul debiasi said...

June 1 brought the announcement from your former employer of their pension buyout plan. This plan is projected to reduce General Motors pension liability by 26 billion dollars, but how do the choices impact you? You can read the free white paper further explaining the topic at http://gmpensionbuyout.info; it goes into detail about the options you find yourself facing. On top of educating yourself, it's advisable to seek the advice of a professional financial planner. There are many factors involved in determining which option is best for you and your family, but only days until your decision deadline of July 20, 2012. Make sure you get the help you need to make the right choice.