In an effort to stave off the crippling effect it's retiree health care plan is having on the bottom line ($10.6 billion in losses last year), GM is offering $140,000 to it's hourly workers with over 10 years experience if they will just leave.
One has to wonder if this is a good deal for any GM employees who are eligible for health care benefits after retiring. Health care costs are skyrocketing, with no end in sight.
GM, Delphi, UAW announce deal - Mar. 22, 2006
GM announced an agreement with the United Auto Workers union Wednesday, although it did not give the details of the offer being made to all 113,000 U.S. hourly employees. But a source familiar with terms of the offer confirms those UAW members with 10 years or more service with the automaker will get $140,000 if they agree to forsake the retiree health care coverage that has become a crippling burden for GM.
Those with less than 10 years service time will get $70,000 if they leave without the health care coverage.