GM to pay more than $400 million in worker bonuses
Less than two years after entering bankruptcy, General Motors will extend millions of dollars in bonuses to most of its 48,000 hourly workers as a reward for the company’s rapid turnaround after it was rescued by the government. The bonuses to 76,000 American workers will probably total more than $400 million.
Most of GM’s hourly workers will get a record payment of more than $4,000 – more than double the previous record in 1999, at the height of the boom in sport utility vehicles and pickup trucks. Nearly all 28,000 white-collar workers such as engineers and managers will get 4 to 16 percent of their base pay.
The government has been repaid $23 billion but needs $26.4 billion more to recoup its whole investment. The government still owns 500 million shares of GM common stock, which would have to sell for roughly $53 per share to get all the money back.”Since the taxpayers helped these companies out of bankruptcy, the taxpayers should be repaid before bonuses go out,” said Republican Sen. Charles Grassley of Iowa. “It sends a message that those in charge take shareholders, in this case the taxpayers, for a sucker.”
While unemployment “remains” at 9% and thousands are losing their jobs, isn’t that a slap in the face to us? I was laid off last week and before that, hadn’t had a raise or bonus since 2008. More importantly, shouldn’t GM be using profits to pay their loans first? But no, gotta reward the unions as usual.