General Motors to slash 31,500 jobs.

The General Motors has announced that it is going to restructure it work force and they have a plan to reduce 31,500 jobs.The decision was taken in order to save the company from recession.GM have asked the US government for a bailout package of $18 billion.The company have alreay reduced the task force to the 2000 levels and they further have a plan to reduce the task force.The job cuts were detailed in a report GM presented to Congress in hopes of securing government-backed, low-cost loans.

GM said it expects to be “fully competitive” with Toyota on wage costs for “both current workers and new hires” by 2012 due to “additional changes to be negotiated” with its main union, productivity improvements, turnover rates and the planned cuts.
A landmark labor agreement reached last year has lowered GM’s total costs for new workers to $25 to 35 an hour compared with Toyota’s average US labor cost of between $45 and 50 per hour, GM said.
“The operating and capital restructuring elements will significantly improve the company’s profitability and cash flow for the long term, and enable full repayment of any temporary federal assistance by 2012” in the event US auto sales remain at or above 12 million vehicles a year, GM said in the plan.

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