Currently reading: GM workers' retirement U-turn
hourly GM workers change their minds on voluntary redundancy

Around 600 General Motors workers who originally agreed an early retirement settlement have changed their minds, GM has admitted.

Of more than 7600 hourly-paid employees who had originally accepted the early retirement package, just over 7000 have actually taken up the option.

The final deadline for the GM offer came last week, just a day after the Obama administration rejected GM’s outline plan for a return to profitability.

The offer, which includes a $20,000 (£13.5k) lump sum and a $25,000 (£17k) voucher towards the purchase of a new GM vehicle, is aimed at reducing the amount of GM employees on hourly wages.

In 2007 GM negotiated a deal that meant newly hired hourly-wage workers would get around half the pay - $14 or £9.40 - of existing employees.

However, the downturn in the global and domestic US car market has left GM with no need to hire new hourly workers, and with a wage bill that hasn’t been reduced anywhere near as much as GM had envisaged.

Matt Rigby

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