InVoluntary Layoffs GM

**O3H** · February-04-19, 08:56 PM

The involuntary layoffs started
— reportedly scheduled ahead of Wednesday’s earnings call —

Tough start to 2019, right after people start to file taxes,#GeneralMotors layoff via “realigning its workforce,” and the hype about electric vehicles #Michigan #Detroit

**Pat001** · February-05-19, 07:30 AM

The other shoe yet to drop is Ford. They've announced plans to cut staff.

**DetBill** · February-07-19, 11:51 PM

This is how it all started in Detroit, Michigan and much of the rest of the U.S. in the mid 2000s.... Economic theory always predicts 10 jobs are lost in an area when 1 manufacturing job disappears
then, the real estate market collapsed due to unemployment , default on many mortgages and consumer reluctance to purchase homes...then commercial construction stops..... Lets just hope this doesnt happen again..

**EastsideAl** · February-08-19, 03:06 AM

There's an ill wind blowing. We can only hope that it doesn't blow so strongly this time around, and that we have done enough to protect ourselves against its worst gales.

**Honky Tonk** · February-08-19, 05:49 AM

Originally Posted by EastsideAl

There's an ill wind blowing. We can only hope that it doesn't blow so strongly this time around, and that we have done enough to protect ourselves against its worst gales.

Not to worry. NOAA Weather says it should subside by 10 a.m. today.

**Pat001** · February-08-19, 09:08 AM

It will be tough for those 4,000 GM workers who are getting dumped onto the job market at the same time. There are auto-related jobs to be had in the Detroit area but not 4,000. When the music stops not everyone will find a chair. That means people will once again be moving out of Michigan instead of moving in.

**jcole** · February-08-19, 09:18 AM

A lot of those jobs aren't "auto" jobs; there are skills transferable to other industries: IT, merchandising, supply side stuff. Beaumont has already contacted GM and told them to send their people over. There are 500 jobs at Beaumont for those with transferable skills

Originally Posted by Pat001

It will be tough for those 4,000 GM workers who are getting dumped onto the job market at the same time. There are auto-related jobs to be had in the Detroit area but not 4,000. When the music stops not everyone will find a chair. That means people will once again be moving out of Michigan instead of moving in.

**Lowell** · February-08-19, 10:09 AM

I'm curious. Are all 4000 local or are they spread throughout the GM empire? It looks like the brunt is will be borne here, but every single one? What is the hit on Michigan and Metro Detroit?

When anyone loses a job it is sad but I guess this is inevitable in such a rapidly transforming industry. This is another argument for universal health care. Losing a job is more than losing a salary. Universal health care would be good from both industry and employees.

**Danny** · February-08-19, 12:34 PM

GM is playing the Roger Smith profitable policy again. Make a profit, shut down plants and lay-off the leftovers.

**EastsideAl** · February-08-19, 02:27 PM

Just found out my cousin got the axe. She's been there over 25 years and was pretty high up in management. Sure looks deeply ugly there from what she says.

**JBMcB** · February-08-19, 02:41 PM

Most of the cuts were at the Tech Center and Ren Cen, with the rest coming from the satellite offices and the proving grounds.

Every group had layoffs. It wasn't handled well at all, but it probably had to be done. A reorg was a long time coming. They laid off a lot of people in 2009, but those were mostly people directly attached to the shuttered marques [[Pontiac, Saab, Hummer, etc...) After winding down Opel, their head count was too high for the number of profitable programs they were running. With the super-high eMPG electric vehicles coming online, they can ditch the never profitable compact and small sedans they had to build to make their CAFE requirements, and focus on profitable crossovers and SUVs.

Yeah it still sucks, but GM is giving 6 months severance +1 month [[terminations aren't effective until the end of February or March) and the economy is doing well enough that most people should be able to find another job. If being laid off was an inevitability, it's better that it be done now than when the economy is in the crapper and there aren't any jobs available.

**401don** · February-08-19, 03:05 PM

With the super-high eMPG electric vehicles coming online, they can ditch the never profitable compact and small sedans they had to build to make their CAFE requirements, and focus on profitable crossovers and SUVs.

Still think they should have kept the Cruze. Profitable or not, it did decent numbers and they are abandoning a large volume segment that has traditionally sold to 1st time buyers who trade up within the brand. Guess they buy a Corolla or Civic now and trade up to a RAV4 or CR-V.

**O3H** · February-08-19, 07:53 PM

Well the folks that went from Pontiac - to Ren Cen or Warren Tech -
and are now let go , earlier than they planned , are probably fuming.

**poobert** · February-08-19, 08:48 PM

Originally Posted by Lowell

I'm curious. Are all 4000 local or are they spread throughout the GM empire? It looks like the brunt is will be borne here, but every single one? What is the hit on Michigan and Metro Detroit?

When anyone loses a job it is sad but I guess this is inevitable in such a rapidly transforming industry. This is another argument for universal health care. Losing a job is more than losing a salary. Universal health care would be good from both industry and employees.

I'm going to see you that universal health care and raise you universal basic income.

I'm not a socialist, and actually pretty centrist, but with the constant automation and outsourcing I can't see how we can sustain even a "knowledge" economy.

Keep in mind that "trucker" is the most common occupation in nearly every state. Within the next couple generations that will be wiped out by automation.

I'm not for laziness, either - so why not kill two birds with one stone and eliminate entitlements - food stamps, unemployment, SSI - and just give everyone a universal basic income?

This all just points to being completely unsustainable, and I can tell you while I'm not a communist I'm fucking sick of 40 year old supply-side-saves-all nonsense that is all the Republicans can come up with when they're not freaking about gay people or a junior Congresswoman from New York.

**Meddle** · February-09-19, 09:56 AM

^^ It kinda goes beyond that.

Small neighborhood mechanics are being forced out of business because they can't keep up with the computerization of vehicles and classes are too expensive. Tire pressure sensors have to be reprogrammed/reset? Really?

Out here in the boonies, people are finding they can't work on their own tractors due to computerization. If they have the ability, some dealers won't sell them the parts because a factory trained mechanic has to reset some codes. That cuts out the small rural farm mechanics that have been in business for years. And small family owned dealers are being forced to sell to the corporate sized dealers.

Self employed artisans and craftspeople that have long supported their families now have trouble selling their home crafted products because the 'new generations' don't want those things any more.

Even small pharmacies and family practice clinics are shutting down because they can't compete with the corporate giants.

I just recently noticed a neighborhood veterinary clinic has closed. The guy was getting pretty old, but he had people working for him. I'm guessing he wanted to retire and couldn't find anybody interested in his small practice.

People in many fields of work are out of jobs through no fault of their own and there is no where for them even to apply for jobs. Those types of jobs are gone forever.

**Cincinnati_Kid** · February-09-19, 10:56 AM

I'm not for laziness, either - so why not kill two birds with one stone and eliminate entitlements - food stamps, unemployment, SSI - and just give everyone a universal basic income?

Since when did SSI become a entitlement? Please enlighten me.

**JBMcB** · February-09-19, 01:38 PM

Originally Posted by Meddle

Self employed artisans and craftspeople that have long supported their families now have trouble selling their home crafted products because the 'new generations' don't want those things any more.

Uh, what?

https://www.etsy.com/

**O3H** · February-09-19, 02:56 PM

There has to be Disposable Income to buy ""art"" for a residence.
Definitely on the - ain't got none" - list for many in Metro Detroit.
It will now get worse, as those that had some spare $,
will now hold it very, very tight.

**Wesley Mouch** · February-12-19, 03:25 PM

Originally Posted by poobert

...snip...
Keep in mind that "trucker" is the most common occupation in nearly every state. Within the next couple generations that will be wiped out by automation.

And 100 years ago, it was farmer. Somehow, we survived. And regardless of what you think about today's economy, we've had a great 100 years with increase in wealth for everyone.

Originally Posted by poobert

I'm not for laziness, either - so why not kill two birds with one stone and eliminate entitlements - food stamps, unemployment, SSI - and just give everyone a universal basic income?

Do you think we have the will to eliminate food stamps, unemployment, and SSI?

If so, I'm open to UBI. But it should be a replacement for all entitlements in principle [[although not aid to those with specific disability and such).

Originally Posted by poobert

This all just points to being completely unsustainable, and I can tell you while I'm not a communist I'm fucking sick of 40 year old supply-side-saves-all nonsense that is all the Republicans can come up with when they're not freaking about gay people or a junior Congresswoman from New York.

AOC's not very important. But the reaction from the Democratic candidates is. The flag went up the pole, and they all saluted.

So they believe the public wants free-stuff. And they are saying 'yes'. I'm gonna give you free stuff too! And I have a new theory of economics that says it's possible.

On the other hand, as above, we've done wonders with our world with solid economic growth. For example: Worldbank:

Nearly 1.1 billion fewer people are living in extreme poverty than in 1990.

So we are doing a lot of things right if we can accomplish this.

And we have a lot to do yet. Figuring out how to minimize the disruption to farmhands and teach them new skills like truck driving that are in demand. Or the new version... from truck drivers to.... well I don't know.

Maybe some people can't be retrained, and a bridge like UBI might be a good solution.

**iheartthed** · February-12-19, 05:04 PM

Originally Posted by poobert

I'm going to see you that universal health care and raise you universal basic income.

I'm not a socialist, and actually pretty centrist, but with the constant automation and outsourcing I can't see how we can sustain even a "knowledge" economy.

Keep in mind that "trucker" is the most common occupation in nearly every state. Within the next couple generations that will be wiped out by automation.

I'm not for laziness, either - so why not kill two birds with one stone and eliminate entitlements - food stamps, unemployment, SSI - and just give everyone a universal basic income?

This all just points to being completely unsustainable, and I can tell you while I'm not a communist I'm fucking sick of 40 year old supply-side-saves-all nonsense that is all the Republicans can come up with when they're not freaking about gay people or a junior Congresswoman from New York.

Universal basic income is a super socialist position. It's like the standard definition of a socialist. This isn't a criticism, just a clarification.

I am extremely skeptical that automation will render truck drivers obsolete. Planes have been able to fly themselves for a generation already, and we still have pilots.

**archfan** · February-13-19, 03:28 AM

Originally Posted by Wesley Mouch

AOC's not very important. But the reaction from the Democratic candidates is. The flag went up the pole, and they all saluted.

That kind of says she is. It will be interesting to revisit your assessment in five years.

**313WX** · February-13-19, 04:54 AM

Originally Posted by archfan

That kind of says she is. It will be interesting to revisit your assessment in five years.

I can just imagine the meltdowns ~~when~~ if Bernie Sanders wins the 2020 election [[from both neoliberals/establishment dems and conversatives).

**O3H** · February-13-19, 11:30 AM

What is an unemployed auto employee to do in Feb 2019 ?

**Pat001** · February-13-19, 12:24 PM

Originally Posted by O3H

What is an unemployed auto employee to do in Feb 2019 ?

.
Even though the economy is better than it was in 2009, which was the last time there were major auto industry layoffs, there are only so many jobs in Michigan. Many will have to relocate which is tough when you have kids in school, a spouse with a career, elderly parents to care for, etc.

The ones who will have the most trouble finding work will be the over-50 workers. Companies like to say they "value" older workers but they don't hire them.

**bibs** · February-13-19, 12:54 PM

Originally Posted by O3H

What is an unemployed auto employee to do in Feb 2019 ?

Be a journey man and journey to where to work is. Consider the Southern States that have auto manufacturers. Or you can stay in Michigan and let a few auto executives drive you car[[life). Pun intended. I move to the St Louis region because the economy is diversified. If one industry crashes, you can move to another industry.