GM races with staff buyouts, may get to keep federal loans

SOUTHFIELD: General Motors said 7,500 United Auto Workers members signed up for buyouts the company needs as part of cuts to keep $13.4 billion in US aid, more than doubling a Barclays Capital estimate.

The retirements and buyouts open slots for the biggest US automaker to hire replacement workers for half the current union rate. Under the federal loans GM says it needs to survive, labor costs must match those of Japanese automakers in the US. GM has trimmed about 60,500 jobs in three buyouts since 2005.

GM and Chrysler LLC are encouraging workers to accept buyouts, retire or quit after concessions this year eliminated benefits related to job security and unemployment pay. The automakers are seeking as much as much as $21.6 billion in additional US financing to stay in business.

More than half of the workers at Detroit-based GM signed up since March 20, and about 90% are either retirees or taking early retirement, company spokesman Tony Sapienza said in an interview. The workers will leave by April 1, and vacant jobs will be filled with existing workers where possible and new employees where necessary, GM said.

���We���re pleased,��� Sapienza said. ���This is a significant milestone in progress in our restructuring plan.���

President Barack Obama���s auto task force will announce more aid for GM and Chrysler within a week, possibly in a few days, Senator Carl Levin said. ���It���s clear that there will be more support and it will be with some conditionalities, which will be made clear within a week,��� Levin, a Michigan Democrat, told reporters in Washington.

Steven Rattner, the Treasury���s chief auto adviser, said March 20 that the task force would give a ���sense of direction��� before the end of the month. March 31 is the companies��� deadline to show they can restructure and remain viable.

���It���s something that will be positive,��� Levin said of the task force���s planned announcement. ���The administration wants to be helpful. It is clear to me that there will be conditions and that there will be clear direction as to where they���re headed.���