Honda offers buyouts, cuts pay in North America

[MoparDan]

http://finance.yahoo.com/news/Honda-...-14810714.html

Honda offers voluntary buyouts, cuts pay and production in North America

• <LI class=byline>Meghan Barr and Dan Strumpf, Associated Press Writers
• Wednesday April 1, 2009, 6:46 am EDT

COLUMBUS, Ohio [[AP) -- Honda Motor Co. is offering voluntary buyouts, cutting workers' pay and imposing 13 non-production days at its North American plants to reduce its output this summer by 62,000 vehicles.

Honda spokesman Ron Lietzke said Tuesday that the buyouts will be offered at most of the Japanese automaker's facilities in North America, where it employs 35,600 people. Sweetened retirement packages are also being offered, he said.
Overall compensation will be reduced for its North American employees, with top executives experiencing the biggest cuts, Lietzke said. He would not say how much salaries would be reduced.
Bonuses will be greatly reduced or eliminated, but pay rates for production and hourly workers will not be affected, Lietzke said.
"There is a continuing need to reduce our inventory," Lietzke said. "Regardless of job title or level within our organization, each Honda associate will share the responsibility of doing what we must do to remain competitive."
The company builds Honda Accords and Acura TLs and RDXs in Marysville, Ohio; Honda Civics and Elements at a factory in East Liberty, Ohio; and engines and other components in Anna, Ohio. The company also has a plant in Lincoln, Ala., that makes the Odyssey minivan, Pilot sport utility vehicle and V-6 engines. It also builds transmissions in Tallapoosa, Ga., and builds all-terrain vehicles, lawnmowers and other products in the U.S.
Between May and July, the 13 non-production days will include up to two days per month on which employees can't go into work. They can choose to either cover that time with vacation or take no pay.
In Mexico, Honda will suspend production for 13 days between May and September at its plant in western Jalisco state, but doesn't plan reductions among the 1,800 workers at the facility, said company spokesman Javier Gonzalez. The plant produces the CR-V model and exports much of its production to the United States.
The Tokyo-based automaker has been cutting auto production aggressively in North America in recent months in an attempt to lower inventories of unsold cars. In December, it said it was removing 119,000 vehicles from production for the fiscal year ending Tuesday and it cut production even further in January.
Spokesman Edward Miller said the company produced about 1.3 million vehicles in North America during the 2008 fiscal year. Miller declined to provide a production or sales target for fiscal 2009.
Honda has not been immune to the troubles plaguing the broader auto industry, brought on by the downturn in consumer confidence and the lockup in the credit markets. The automaker's U.S. sales are down by about a third for the first two months of the year.
In February, Honda announced it was replacing its chief executive and reshuffling its board of directors in a bid to provide fresh leadership.
Still, the company is faring better than its Detroit-based counterparts and is counting on interest in its smaller, fuel-efficient vehicles to propel a rebound. Earlier this year, Honda unveiled its new Insight hybrid, which will be priced under $20,000 when it arrives in the U.S. in the coming weeks and is expected to compete head-on with rival Toyota Motor Corp.'s Prius.
Toyota, Honda's chief rival, last month took similar moves in the U.S., announcing cuts to production, executive compensation and offering buyouts to about 18,000 workers. Both automakers have said they are seeking to avoid layoffs -- an extremely rare practice at Japanese companies, which have a culture of lifetime employment.
U.S.-traded shares of Honda rose 31 cents on Tuesday to close at $23.70.
AP Auto Writer Dan Strumpf reported from New York.

[Bigb23]

quote:

"Overall compensation will be reduced for its North American employees, with top executives experiencing the biggest cuts, Lietzke said. He would not say how much salaries would be reduced.
Bonuses will be greatly reduced or eliminated, but pay rates for production and hourly workers will not be affected, Lietzke said."

What a concept, executives and management taking a pay cut first, while the grunts get to keep what little pay they earn. Just goes to show how much more advanced they are, over American manufacturing, which were giving the executives huge bonuses during the economic downturn.

[Sstashmoo]

Quote: "top executives experiencing the biggest cuts,"


Another way to look at that: Honda has little regard for folks that made the investment in themselves by going to college and earning a degree.

[lilpup]

Quote: "top executives experiencing the biggest cuts,"


Another way to look at that: Honda has little regard for folks that made the investment in themselves by going to college and earning a degree.

Which, of course, incorrectly assumes no one on the line has a degree.

[Sstashmoo]

Quote: "Which, of course, incorrectly assumes no one on the line has a degree."

Of course.

It is also incorrect for you to assume that it would matter, if a degree is not a prerequisite of the position, it's irrelevant. I mean, a few of them could be professional jugglers too. Why do you hate jugglers?

[lilpup]

Quote: "Which, of course, incorrectly assumes no one on the line has a degree."

Of course.

It is also incorrect for you to assume that it would matter, if a degree is not a prerequisite of the position, it's irrelevant. I mean, a few of them could be professional jugglers too. Why do you hate jugglers?

Why do you assume no jugglers have degrees? The entire premise of the complaint was that Honda disregards higher education just because they're cutting executive pay.

BTW when Chrysler opened their plant in Dundee a degree was a pre-requisite for a position there, according to their spokesperson.

[Sstashmoo]

I wasn't complaining or proclaiming anything, just another way to look at it. The Japanese appear in this instance to be downplaying the importance of their executives and stressing the importance of their workforce. Nothing wrong with that, I was just pointing out the difference. The care taken for the laborers gives one a whiff of communism. Sort of kills the incentive for one to grow thyself, in a society where there is no growth. See the precedent? Not condemning either one.

[lilpup]

The care taken for the laborers gives one a whiff of communism.

Nonsense.

Sort of kills the incentive for one to grow thyself, in a society where there is no growth. See the precedent?

They aren't cutting the executives back to line worker pay, just reducing the wage gap that has gotten out of control in the US.

Maybe you don't realize it but excessive wealth gaps and abuse by those in positions of power are what cause revolutions.

[jiminnm]

Executives have recently had a salary that is 400 times that of the average worker. 25 years ago it was a little over 70 times. While at the same time real wages fro the average worker have remained stagnant.

This is true for one, maybe two, individuals at a corporation [[usually just the CEO). It is certainly not true for all executives.

[Sstashmoo]

Quote: "They aren't cutting the executives back to line worker pay, just reducing the wage gap that has gotten out of control in the US"

Just your opinion. The article does not say that.

They did say they "shuffled" their executives for "fresh leadership". Sounds as though Honda does not put much stock in the white collar portion of their company.

This isn't an argument about the virtues of blue-collar versus white. Rather the perceived philosophy behind Honda's decisions.

[Sstashmoo]

Yep Lowell, Everything is back to normal. Ding!

[alsodave]

Yep Lowell, Everything is back to normal. Ding!

LOL. Glad to see you over here, Sstashmoo!

[terryh]

Sstashmoo since they have degrees the skys the limit for them..why would you even empathize? I would rather be unemployed with a degree than without.... Why the hardon for workers Sstash?

[Sstashmoo]

Quote: "Why the hardon for workers Sstash?"

I was merely pointing out a different rationale and who it applies to. Mathematically, it's only logical that the higher paid people can afford the cuts more than lesser paid. I was just questioning the basis of their decision. Was it simply numbers or something else? I agree with what they did, but why is all I'm asking.

[Angry Dad]

quote:

"Overall compensation will be reduced for its North American employees, with top executives experiencing the biggest cuts, Lietzke said. He would not say how much salaries would be reduced.
Bonuses will be greatly reduced or eliminated, but pay rates for production and hourly workers will not be affected, Lietzke said."

What a concept, executives and management taking a pay cut first, while the grunts get to keep what little pay they earn. Just goes to show how much more advanced they are, over American manufacturing, which were giving the executives huge bonuses during the economic downturn.

No they are just trying to pay people to quit so they can hire somebody else at a lower rate.

Hate to break it to you but these guys are no saints. They already engage in anti union organizing activities. And Honda was recognized by OSHA for having one the worst records for safety of workers in the United States. They made the "Dirty Dozen".

[ccbatson]

What is the alternative? Out of business? Get lean and survive [[to fight another day), or not.

[Detroitej72]

quote: And Honda was recognized by OSHA for having one the worst records for safety of workers in the United States. They made the "Dirty Dozen".


Interesting point.

I'd love to hear those hypocrites Shelby and Corker cry about their precious foreign auto makers slashing jobs after they've been given tax breaks by their southern states.

[Flanders]

Seems to me that Honda's claim of "cutting executive pay" is pretty vague, not to mention probably unverifiable. During a time when there is a great public uproar over executive compensation, especially for those corporations that are recieving billions in bailout funding, this is a very shrewd PR move on the Japanese automakers part, IMO.

From reading threads and blog posts on more national internet messageboards, there is not much love out there for the domestic automakers or their employees, from liberals or conservatives. The liberals criticize their vehicles, while the conservatives simply want to see the UAW obliterated..The poor quality of many vehicles manufactured by the indifferent Big Three, especially during the 70s and 80s, has apparently done nearly irrepairable harm to their collective reputations.

[ccbatson]

You don't think those OSHA surveys were biased now do you?

[Detroitej72]

What makes you suspect they were biased? Do you have any proof, or is that just some flip comment thrown out to pile on a government agency that you obviously feel is unnecessary?

[cheddar bob]

Sstashmoo prepares to pick a side in an upcoming argument...
Attachment 452

[Sstashmoo]

Quote: "Sstashmoo prepares to pick a side in an upcoming argument...
ManBlingfoldedWithDart.gif"

I take that as a compliment. Thank You. "Justice" wears a blindfold.

[cheddar bob]

It was intended as a compliment. Absolutely.

[MoparDan]

[ccbatson]

Politics is a dirty business, OSHA is not exempt from this fact.