Executive Level Severance Contracts Offered To GM Workers.
GM is offering money to its workers in order to entice those employees to voluntarily terminate employment (ie retire). Severance / retirement packages are reportedly available to 113,000 workers. GM also reportedly reached a deal with Delphi workers to avoid a labor dispute.
What does this mean to GM workers?
General Motors employees will be presented a proposed severance contract which will include a large number of terms including the pay-out information. We do not advise you sign the proposed contract without first seeking legal counsel.
- You need to understand the buy-out terms. Never sign any severance package without first fully understanding what is being proposed.
- Further, there will no doubt be non-financial terms which you will want to negotiate. These terms might include preservation of certain legal rights, overly broad release language, reemployment, unemployment rights, as well as other important terms.
We can help you understand your rights and negotiate with General Motors any important severance terms which may apply to your specific situation. We encourage you to contact us for a free consultation and see how we might help maximize your buy-out terms.
Industry experts said that relatively few GM employees were likely to take the buyouts, though, since most of them are eligible for an alternative early retirement package announced Wednesday that would allow them to keep their health care coverage.
Some workers could receive more than $100,000 under the early retirement plan, and that could limit the cost-savings to GM.
Most workers know the value of the retiree health care plan at GM and will not forfeit that benefit. There may be some people who could use an immediate cash infusion, and those are the most likely ones to express interst in this offer.
Most who do take it will have another source for health coverage, such as a spouses' health plan, or will be those who doubt GM's retiree health care plan will survive in the long run.