Over 1600 employees of General Motors Corp. lost their jobs over the next few days that the vehicle manufacturer in difficulty to accelerate the reduction of costs in order to benefit from further support of the government.GM North America President Troy Clarke said on Monday in an e-mail to employees on foot are necessary to ensure the long-term sustainability.
"In these times of unprecedented GM has to reinvent all areas of our business, including our size and organizational structure to create a lightweight and portable," Clarke wrote in the e-mail by the Associated Press.
Clarke said that in the next week is "a very tough time for the entire team of GM, but especially for workers who are directly from these actions."
GM lives in 13.4 billion U.S. dollars of loans from the government. The manufacturer is having a maturity of 1 June to reduce the receipt of the licenses of the parties to continue supporting the government.
Last month, GM 3400 USA began cutting jobs as part of the elimination of 47,000 jobs to be done throughout the world by the end of the year. Some of these posts are due to normal attrition, but most are covered by the foot involuntarily.
Most affected are the Detroit metropolitan area, especially in the middle of the headquarters of GM and its technical center on the outskirts of goods, where the company a large part of their engineering and design work.
The company's goal is 3400, after 1600, the walking distance, said spokesman Tom Wilkinson.
The even deeper cuts in May as GM moves the deadline for the government. Chief Executive Officer Fritz Henderson said Friday that the company closed several plants across the announcement in February five. The factories that have closed were not identified.
"It is not about how we revised our plan to further and faster in our restructuring, there is a further reduction of labor costs, the people in the communities, based on the plants and people, the hours and the employees of the company, "said Henderson.
E-mail Clarke GM said the dismissed employees of the resources and support during the process.
Wilkinson said that the workers receive a compensation amounting to approximately two weeks for each year up to a maximum of six months. Packages include basic salary and companies involved in health and other benefits, he says. The company provided to assist in the search for other jobs for a period not exceeding three months, he says.
GM needs to reduce costs and the acquisition of concessions and commitments for the unions to continue supporting the government. The Government of the automotive industry, said that the group must convince the holders of 28 billion U.S. dollars in bonds issued by GM to take stock, and in return a share of the blame.
The unions in the United States and Canada have concessions, too. GM, to prepare them for more assistance, the United Auto Workers on a balance sheet for a portion of the approximately 20 billion U.S. dollars, GM has a union for the confidence that the pensioners are the health care costs from next year.
If you are not enough for the restructuring of the date, on the basis of GM in Detroit could be forced into Chapter 11 protection with the government providing funds. The government calls a little "surgery" in the event of insolvency, the debts, contracts and changes within the framework of the independent trade union units of the company.
Henderson said Friday that the company would prefer that a consensual restructuring, because it wants that he can survive to repay the government, but acknowledged that the bankruptcy is more than likely that in the past.
Chrysler LLC is a date before 30 April for concessions and the end of an alliance with Fiat SpA, Italy, Fiat and Chrysler would discuss an agreement Fiat accounted for 20 percent in the Auburn Hills, Michigan, on the cars from Fiat for small technology.
Gov. Jennifer Granholm of Michigan said that the periods of occupation of GM and Chrysler, all parties to make "pressure" to find a solution.
"But that does not erase the pain of the people think when they receive a circular pink and the door," he said Monday on a conference of the Automotive Engineering in Detroit. "I want to see that there is a commitment from the community and the people affected by the change of direction and momentum."
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