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Discussing the Diaspora as seen through an internal Black lens
GM Reportedly To Shut Down US Plants For 9 Weeks
April 22nd, 2009
It is being reported on television news as well as online that the GM plans to shut down the vast majority of their plants for 9 weeks during the summer.
GM has not released a statement confirming this reporting, and workers have not been told of any such shutdowns.
The shut down would include the normal 2 week GM furlough in July.
The Associated Press has the story:
Sources: GM to shut most US plants up to 9 weeks
By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer – 8 mins ago
DETROIT – General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, two people briefed on the plan said Wednesday.
The exact dates of the closures are not known, but both people said they will occur around the normal two-week shutdown in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.
GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.
One of the people briefed on the plan said a few plants that make more popular models could remain open for part of the shutdown period, but at reduced assembly line speeds.
Thousands of workers could be laid off but would still get most of their pay because their United Auto Workers union contract requires the company to make up much of the difference between state unemployment benefits and their wages.
GM is living on $13.4 billion in government loans and faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn’t meet the deadline, the company’s CEO has said it will enter Chapter 11 bankruptcy protection.
UAW officials at several factories said they have meetings scheduled Thursday and Friday with plant managers and GM human resource officials to discuss production changes…
posted in News & Events, Socio-Economic | | | View blog reactions |
8 Responses to “GM Reportedly To Shut Down US Plants For 9 Weeks”
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Yobachi Boswell is creator and publisher of BlackPerspecitve.net. I’m a writer, activist and political watcher based in Nashville, Tennessee. I’ve also been know to do some spoken word and MCing in my day.
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Michigan is in such deep trouble right now. I can see why GM has decided to shut down for 9 months and lay off workers, it could definitely save them–but what about those who’re about to become unemployed?
Those out of work for 9 months will be paid due to union contracts. The difference now is since we now own Government Motors, taxpayers will be footing the bill.
All these bailouts and who is not lossing jobs the people at the top how about Fed loans to small businesses because banks are not giving them like the first bailout with Bush was suppose to help do. How about securing our boaders why is almost 50% of Mexico’s work force working here illegally? Maybe when that is done our hospitals will stop closing down and their will be room in our low income housing for poor Americans because housing is not allowed to ask about citizenship. What the heckis going on? We need to take care of our own brothers and sisters first!
KimNorth, exactly. The people at the top got all the benefit on the front end, and stuff their pockets with millions. Now after wrecking our economy they face no reprocussions.
They did force the CEO of GM out a few weeks ago; but that’s one person, and he still walked away with millions. Not much of a punishment.
Yes, the employees will be “out of work” for nine weeks - but they’ll get 90% of their wages - paid by GM/taxpayers and another 10% from unemployment benefits - while being “on vacation”. Sweet.
This is nothing new - it’s always been that way.
So they’re getting paid to stay home. Thats’s a great deal for them. It’s also part of why GM is failing.
Really a sad development for the employees as well as for the govt too. I don’t foresee early restart of the plant as the economic recovery is very slow. Employees should start their hunt for the alternative earning medium.
Online Tutor, they should started that hunt long time ago.