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GM to Cut 1,000 Salaried Jobs After 1,900 Workers Take Buyouts - Bloomberg.com

It is unfortunate, but my wife was squarely in the middle of this "ground zero".

After 25 years at GM, she was walked out last Tuesday, meaning she gets the opportunity to start a brand new spanking career, and we get to practice living on one income in the event it takes a while for her to find another job.

We were well prepared for this possibility, but like anything else it has been a period of adjustment akin to a death or divorce. There is the typical shock/denial, the anger, etc. I am proud of her, she walked out with head held high, professionally, and without drama. She had indications that this may be coming, the first of which was the transfer of her group's job responsibilities to GM's Mexico headquarters.

My wife and I are among the last of a generation of workers that has a pension, and settled into a corporate career for life at the same company from hire-in to retirement.

I watch people who came out of school just a scant 5-10 years after my wife and me, and I would say that the multiple-corporate job seems to be the norm now, rather than the occasional exception.

So, now onwards to the future. Along with the subtle reminder that the only constant is that of change.
 

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I am sorry to hear about your wifes job and thoughs of other GM works. I wish her the best in finding a new and exciting career opportunity.

The days of a life time career with one company seems to be at an end. I am currently at one of the Fortune 500 companys where spending your career with the company was the norm. I am still hanging in even though the company has started to whittle down the lifers. This is the first job I got after college and I hope to finish my career here, but if not I am looking forward to seeing what exciting opportunities are out there.
 

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The best of luck to the both of you. May this open a door to a new beginning.
 

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One of the few places that still offer lifetime employment is Higher Ed and it is called Tenure. I sure hope all things work out for you and your wife. Agree with smartin that this will be the beginning of something--hopefully better!
 

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Very sorry to hear about this. These are tough times and I am not sure what the way corporations are currently managing the talent is for the best in the long run. I wish you and your wife the best.
 

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I have been on the same boat for about 5 months now, good luck and hope the job market improves.
 

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Sorry to hear this. On the bright side she will now have time to enjoy her Coupe.

Went through the job loss in April and it took a while to find something else. There are jobs available, you just have to dig a little and use all of those connections made over 25 years at GM. Good luck with the hunt.
 

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Steve ... I am sorry to hear this news :(

Hang in there - there are still lots of opportunities out there - it can just take some time to locate them.

Best wishes to you both!
 

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GM RIF's

Steve & Jodi, sorry to hear about the RIF. :cuss:

BTDT- Lost my special employment position in '93. Never have completely digested the corporations logic. :chill: Discussions have not helped me and I had professional help. Both Solstice's have helped (Sherry knows), but it will always hurt.

Wishing the best for your family.;)

Take care-Steve
:cool:
 

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Steve,

I am really sorry to hear this. Especially for a fellow two Kappa family.

We have been through the same thing this year. My wife lost her job and had to take a 50% pay cut. And my business is off at least 50%.

But you know what? We both really still enjoy our little race cars, keeps our attitudes positive and smiles on our faces. We have just made adjustments elsewhere to keep the boat afloat. And that is the key, just keep your head above water and do what you have to, things have a way of working out. :thumbs: At the end of the day, material possessions really don't matter, even the Kappas. (however that will be the last things we let go. :lol::lol::lol:)

I am willing to bet you that by a year or two from now, your wife will look back and say, "hell, that wasn't so bad".:grouphug:
 

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Wow. Sorry to hear that you've been adversely affected, but glad to know that your wife chose the timing of her exit. You are correct in your observation of the changing American corporate landscape. It's been evolving this way for the past fifteen years since the multi-nationals don't want to be on the hook for legacy costs. Classifying their temporary work force as "independent consultants" solves that problem.

Best of luck to you both.
 

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Steve & Jodi,

Sorry to hear the new but know that both of you will do well! Yes the world is changing and we embrace it or it runs us over.


Here is to leading the charge :cheers:
 

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I'm sorry to hear that, Steve. Things have not been fun at work the last week or so.
 

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This country is being destroyed by some fool that wrote a letter to President Clinton telling him what a great thing it would if we, America, would open our markets to the world for all the great things they have for sale at a low cost, and by golly he said a few things to the guys that can pull the strings and here we are. The only thing they left out was a clear understanding of the word FREE.

I would have thought that someone in the government would have had the ability to look down the road and see that if you let all sorts of things come into this country with a really ridiculous low price it will in time have the effect of killing that product that is made here in the USA, but they did not or they were paid by K street to look the other way, because in their lifetime it will have no effect. For our kids it will, if you are a boomer it will. Because the fools in charge have not come to the conclusion that along with the great buys on everything they let flood our markets, and along with the Dollars flowing out of this country you are seeing the TAX BASE that supported this country evaporate. How close do you think the taxes paid by employees of all the fast food joints in Michigan come to matching those same taxes paid by American, not transplant, American auto manufacturing in Michigan?

How well would if fly if the big three in Japan had a 42% market share in Japan. It wouldn’t and it never will because of the FREE TRADE between our countries. Think anybody in any of the boardrooms in Japan had a drink of sake, and a few banzai’s when Chrysler and then GM rolled over and sank?

As for me I work in Warren Ohio, Delphi Packard Electric and the start of this thread is all too common. I can assure you the person they kept does not have the skills to replace Mrs. Flash, but is well liked by someone high up, and they have no clue as to what her job duties were.
 

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I can't begin to imagine. All the best of luck to your wife in her future. I hope she lands on her feet. Good luck to her and keep your chin up. Stiff upper lip and all that rot.
 

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Discussion Starter #19
Wow. Sorry to hear that you've been adversely affected, but glad to know that your wife chose the timing of her exit. You are correct in your observation of the changing American corporate landscape. It's been evolving this way for the past fifteen years since the multi-nationals don't want to be on the hook for legacy costs. Classifying their temporary work force as "independent consultants" solves that problem.

Best of luck to you both.
Thanks, Michelle. And make no mistake, neither she nor I had any choice in the matter, it is just that we had this as one of the possible scenarios that we prepared for as much as we could.

My issue about "legacy costs" is simple - allow an option to buy out our retirement by allowing us to take our retirement as a lump sum conversion, give us the same deal that the post 2000 hire-ins get (extra percentages in the 401k).

HOWEVER, It also needs to be a FAIR conversion/net present value. Three years ago, the calculation only allowed the growth rate of approximate 10 year T-bill to be used for predicting future growth. I believe this to be fair.

Now, due to a change in the rules, corporations are allowed to use a "corporate bond rate", which can be as high as 7%. By using this higher growth percentage, it both reduces the need to fund the pension fund, and cuts the lump sum pension net present value in half, by allowing an unrealistic growth rate and artificially deflating the net present value. Essentially, GM is saying they expect to make 7% return on the pension fund money for the next 30 years.

Right. And maybe I will crap out a gold Kruggerand tomorrow morning, too.


Well, sorry I used your post to get on my soapbox, Michelle. Please forgive me. ;) :D


And thanks so much for all the encouragement from everyone else - I will make sure it gets passed on. Things do have a tendency to work out just fine, it is just a

"Ya can't always get what you want. But if you try sometime... you get what you need"
-Rolling Stones
 

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Sorry

I can empathize after leaving a Telco with 27 yrs of service, all in management. In my case I was ready, had started to prepare years ago and welcomed the chance to get out of a increasingly bad atmosphere. Not always the case I know, I watched thousands go before me as would have your wife.

Upper mgmt has no clue in who leaves, they have no idea of the experience and knowledge being tossed , it isn't personal although it seems that way.

There are some obvious truths stated by the previous poster about free/global trade, the competition it brings and the job loss. Billions of folks out there would like our standard of living, now to add insult to injury after taking those jobs, the technologies developed in the U.S, they will compete for the worlds resources at a increasing rate as they grow richer thus raising the cost to North Americans. Lose/lose for the incumbents, although stereos and flat screens are cheap now, wooo hooo.

It really sucks on the deal your wife is getting on the discount rate applied to her pension, at the corp bond rate, that's bull****. I chose to cash out my pension as I handle my own investments, have for years. In Canada my pension was calculated at the 10 yr gov't bond rate. This past year that was very advantageous to me, especially with markets in a funk as I could buy income much cheaper. Corp bond rates have recently fallen but the timing can make a huge difference in the value of your cashout. I would be pissed as you are at the slight of hand being played on the pension.

Best of luck, there will be new doors that open. :thumbs:
 
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