Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

GM Tells Union It Won't Pay Workers to Leave

May 19, 2010
2 min to read


General Motors Co. has told the United Auto Workers it will no longer pay union employees to leave the company, a reversal for an auto maker that has spent billions of dollars over the years coaxing workers to quit, reported The Wall Street Journal.


The UAW has been pressing GM to consider another round of buyouts and retirement incentives similar to programs that ushered out 66,000 hourly workers since 2006. But in a recent meeting with union-local leaders, top UAW officials said GM has indicated it has no intention of extending such a program, according to several officials who attended.

Ad Loading...


Union concessions made in recent years along with GM's improving sales mean the company no longer needs early-retirement programs and buyout incentives to cut costs.


The change puts the union in the unusual position of trying to convince the company to clear out more workers. If GM doesn't thin its ranks, scores of veteran factory workers in the next few years will find themselves without jobs or unemployment benefits.


Laid-off factory workers once could remain on GM's payroll for years receiving almost full pay and benefits, but now they can remain on the rolls no longer than two years before their company-paid unemployement benefits run out. The change came from a deal GM struck with the union last year before entering bankruptcy protection.


The agreement also gives GM more flexibilty to move workers around the country to fill openings as they arise, reducing the need to the company to hire new employees.


At the same time, a leaner GM, after years of shutting factories, is racing to add capacity to meet growing demand for some of its vehicles. Hundreds of workers back are back on the job as the company has added shifts and overtime at several North American factories.

Ad Loading...


A UAW spokesperson couldn't be immediately reached for comment.


GM spokeswoman Kim Carpenter said that rather than launching a new buyout program, GM will use flexibility allowed under its UAW contract to adjust manpower up and down. In addition to being able to move workers more freely from plant to plant, GM can hire temporary labor to meet short-term needs.


In the 10 months since GM emerged from its government-financed bankruptcy, the car maker says it has restored or created 9,100 jobs and invested $2.3 billion in U.S. and Canadian factories.


GM has around 5,000 laid-off workers receiving benefits. Along with the cost of those workers, GM also has been unable hire new workers at a lower wage agreed to by the UAW because the laid-off veterans have first dibs on any new jobs, and they would return at the higher pay scale.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →