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GM’s ‘Cultural Revolution’ Cuts White Collars

From a website called Carscoop:

Dan Akerson Says GM is “Like Communist China in the ‘60s”, Starts Cultural Revolution by Laying off White-Collar Workers

Wednesday, December 07, 2011

Last month, General Motors posted a third-quarter profit of $1.7 billion US. Not bad for a company that, only just two years ago, was almost bankrupt and was saved thanks to a massive government bailout.

Yet its aim is to reduce costs and increase profits even more.

We thought profit was a bad thing. Shouldn’t the Obama administration or the UAW put an end to this nonsense? After all, it’s their company.

GM representative Jay Cooney told the Detroit News: “GM is continually seeking ways to improve our operating performance and reduce complexity to deliver a world-class cost structure and profit margins.”

This, Cooney, says, includes “streamlining the business, so there could be a headcount reduction on a global basis”. This is corporate speak for laying off white-collar workers – initially in small numbers but with more to follow before the end of the year.

Most of the personnel cuts are focused on engineering, product development and corporate operations at GM’s headquarters in Detroit’s Renaissance Center.

After all, the UAW does not represent white-collar workers. And they might not even vote for Obama. Besides, the amazing success of the Chevy Volt proves GM doesn’t need engineers or people doing product development.

There is no mention of these layoffs in the mainstream media. Usually accounts of workers being laid off at Christmas time by a giant and evil US corporation are perennial favorites with our news media.

But apparently that isn’t the case when it is ‘white collar workers’ who are losing their jobs. And the corporation is owned by the government and a union.

The layoffs are part of GM CEO Dan Akerson’s cost-cutting plan, which includes eliminating the group’s worldwide duplicate operations.

"Literally, we have 7,000 more people working on the same amount of work on our competitors”, Akerson told The News in an interview back in June. “It’s just like the Communist Party in China in the 1960s. There has to be a cultural revolution here."

What a perfect role model for a company that is owned by the government and a union.

(By the way, note how in the photo above the UAW logo has greater prominence than even the GM logo.)

This article was posted by Steve on Friday, December 9th, 2011. Comments are currently closed.

2 Responses to “GM’s ‘Cultural Revolution’ Cuts White Collars”

  1. P. Aaron says:

    Like the Volt, GM will need another jolt of emergency cash before too long.

  2. xdannyh says:

    Wow:….Thank you for pointing that out!…
    “By the way, note how in the photo above the UAW logo has greater prominence than even the GM logo.”
    That really says it all!


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