Catherwood LibraryILR School

Automaker General Motors announced to the United Auto Workers union today that it will no longer be following a policy of paying workers to quit the company, after years and billions of dollars worth of buyouts and incentives. For the union, this means they are in the unusual position of trying to convince the company to keep its firing policies in place, otherwise a large number of employees could soon lose their jobs and their chance at unemployment benefits. Ironically, it is in large part due to union concessions made during the financial crisis (as well as improving sales) that have allowed GM to discontinue its buyout and incentive packages. In one particularly pertinent concession, the length of time a laid-off worker could spend on the GM unemployment benefits payroll was limited to two years. New flexibility allowed in the union contract will allow GM to more easily manipulate its manpower.