Published: August 29, 2008 02:25 pm            

GM offers 9,000 retirement incentives

DETROIT -- General Motors Corp. is offering retirement incentives to 9,000 — nearly 30% — of its U.S. salaried workers, a person familiar with the plan said.

GM has said it hopes to cut 15% of its U.S. and Canadian salaried workforce, or about 4,900 employees, as part of the cost-cutting efforts it has instituted to respond to a weak U.S. economy and high gas prices that have driven a dramatic shift in consumer preference away from profitable trucks to fuel-efficient cars and crossovers.

GM began providing the offers this week to eligible U.S. salaried workers. Canadian workers are not receiving the package.

GM has not detailed the structure of the offers, but some salaried employees who were briefed said GM appears to be offering pension payments that are better than those they would normally receive. For example, a worker age 58 is expected to receive a pension payment more like what he or she typically would receive at age 62.

Eligible U.S. workers will have 45 days, plus a 7-day grace period, to decide whether to accept an offer.

        

• Click to discuss this story with other readers on our forums.