|
GM may face more job cuts
|
 |
July 7, 1998: 8:37 a.m. ET
Report says automaker needs to slash 50,000 jobs to become competitive
|
NEW YORK (CNNfn) - Already crippled by two United Auto Workers strikes, General Motors Corp. reportedly may have to cut more than 50,000 hourly jobs in the United States to become as competitive as its rivals.
Citing sources close to GM (GM), Tuesday's Wall Street Journal said the automaker will have to cut an additional 22 percent of its hourly workforce of 224,000, even though it already has eliminated 64,000 jobs since 1992.
GM has invested billions of dollars in the past five years on new equipment and redesigned vehicles that require fewer labor hours. The Journal said company officials now feel they need to get a return on that investment, particularly in the face of a reinvigorated Ford Motor Co. and the Daimler-Chrysler Corp. merger.
The Journal said GM proposes to eliminate jobs as workers quit or retire.
GM's job-cutting plans are a major source of conflict between UAW and GM officials as they negotiate strike settlements at two Flint, Mich., plants, which have now entered their second month.
The walkouts have idled about 163,000 non-striking hourly workers and have cost GM about $1.2 billion in the second quarter.
GM and UAW officials met for negotiations until late Monday amid signs that both sides are eager to end the strikes.
There has been speculation GM and the union may agree to settle the strikes before July 13, when the auto maker's annual two-week holiday for model changeover ends. Neither side, however, has indicated it is willing to give in on key issues.
About 3,400 workers represented by UAW Local 659 walked off their jobs June 5 at GM's metal-stamping plant in Flint in a dispute over work rules and productivity. They were joined six days later by 5,800 peers from UAW Local 651 at the nearby Delphi East diversified parts plant.
Union workers at the metal-stamping facility, the Flint Metal Center, accuse GM of reneging on pledges to invest $300 million in plant upgrades and of attempting to slash jobs or move them out of the country.
GM (GM) shares closed Monday at 70-7/8, up 2. 
|
|
|
|
|
 |
|
