GM: 7,500 Workers to Accept Buyouts

Buyout packages include $20,000 in cash per worker and a $25,000 new-vehicle voucher.
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General Motors

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says that about 7,500 union members have agreed to accept buyouts, with most leaving the company by Wednesday.

"This is another example of GM's commitment to execute our viability plan," said Gary Cowger, group vice president of global manufacturing, in a prepared statement. He said the United Auto Workers union has been a partner in GM's effort to restructure. Buyout packages include $20,000 in cash and a $25,000 new-vehicle voucher.

The biggest contingents of departing workers are 624 at GM's Janesville, Wis., plant, which was shut down last year; 596 at the Grand Rapids, Mich., plant and 579 at the Willow Run plant in Wayne County, Mich.

GM has about 62,000 hourly workers. Including the current round of buyouts, GM will have reduced its hourly workforce by about 60,500 workers since 2006. The company said it will fill job openings with current employees where possible. In facilities where new employees are needed, it will hire at the entry-level wage and benefit structure.

Shares in GM were trading up 41 cents at $3.40 at midday Thursday, while shares in


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were up 13 cents flat at $2.90.