Companies have often hired replacement workers in order to operate productively and economically.
Now, General Motors has decided that hiring replacement workers will help to save the company from bankruptcy. GM hopes to buy out as many of its 113,000 union workers as possible.
As GM continues to buy out union workers with generous retirement packages, the company is dramatically lowering its labor costs. Replacement workers have proven to be the key not only to reduced costs, but also to maintaining high levels of productivity.
GM replacement workers will receive $18 to $19 an hour and no benefits. Their pay represents a 30% reduction in basic labor costs.
GM is back on the road to profitability. In fact, Merrill Lynch upgraded its stock to a buy, and GM shares have been increasing in value all week..
