Lordstown GM car auto factoryAutoworkers laid off from a General Motors plant in Orion Township, Mich., have until the end of the day Tuesday to decide whether to take jobs at the automaker's Lordstown assembly plant, some 250 miles away in neighboring Ohio.

The Lordstown plant, which builds the new Chevrolet Cruze compact car, has 375 job openings in assembly and stamping departments. Last week, GM made job offers to an undisclosed number of laid-off workers from the Orion plant with low seniority, the Detroit Free Press reported.

GM is providing workers who decide to move with a $4,800 subsidy to help with "basic relocation." The workers would retain the right to return to Orion when openings occur.

Earlier this month, GM unveiled plans to build a new compact Buick sedan, based on the Cruze, at Orion. Plans also call for a yet-unnamed subcompact Chevrolet car to be built there when production restarts next August.

The Orion plant, which used to assemble Pontiacs, has about 1,600 workers on layoff. When production resumes, only 1,330 production workers will make first-tier wages of about $28 an hour.

Aside from the workers who have rights to transfer back to Orion, GM won't hire any more tier-one workers for Orion, the Free Press reported. GM's goal is to staff the small-car plant fully with lower-wage workers. An agreement reached between GM and United Auto Workers allows the automaker to pay workers with less seniority lesser wages -- about half that of first-tier wage earners, or around $30,000 a year, down from $58,000 under the previous contract.

The wage concessions were the source of protest Saturday, when about 100 GM workers and retirees picketed outside UAW headquarters in Detroit.

Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
sgentilejr

GM would love to have the experienced workers move and relocate so they have an "Experienced" trained workforce. Instead of having to hire new people off the street. Assembly line workers wages are not GM's problem. GM's problem is that they are losing their shirt on their ownership of 50% of GMAC financing and on every single foreign European auto maker they purchased in the past 20 years.

October 20 2010 at 4:11 AM Report abuse rate up rate down Reply
realgee26

60% of the 1330 will make the first tier wage. Approxiamately 900 of the 1600 laid off or in permanent positions at other facilities will have a job at the Orion Assembly plant when it opens back up for production. It repeatedly has been reported that Orion wants to hire more employees while they are forcing current employees to leave their homes and transfer.

October 19 2010 at 4:56 PM Report abuse rate up rate down Reply
1 reply to realgee26's comment
realgee26

*Correction* 900/1150 of the laid off 1600 will make the first tier wage. The rest will be forced to transfer possibly out of state. 40% of the jobs at Orion Assembly will not be obtainable by seniority employees when the plant reopens in 2011.

October 19 2010 at 4:59 PM Report abuse rate up rate down Reply