Thousands of salaried employees at General Motors in the US and Canada will be thrown out of their jobs at the beginning of 2019. The job cuts, which are also coming to Ford, are part of a larger expected purge of salaried and hourly positions amid declining sales worldwide and the impending restructuring of the global auto industry.
GM sources say at least 3,000 employees would be terminated. The company is targeting 17,700 salaried workers with at least 12 years of experience.
Managers told employees late last week that 3,000 or more workers in North America could be terminated starting in January. GM managers held staff meetings last Thursday and Friday to ratchet up pressure on salaried workers to leave. There is a corruption scandal that has erupted in the auto workers union, UAW, over union negotiators taking million in bribes to sign company friendly agreements.
Analysts say these cuts of engineers, designers and mid-level management are just the beginning, thousands of production workers’ jobs will be slashed.
Global car companies are under enormous pressure to increase profit margins and shareholder payouts despite falling sales. GM reported its third-quarter operating profits in North America increased by 37 percent to $2.8 billion despite an 11 percent drop in sales in the US market.
Auto workers and workers in general need to build new organizations independent of corporate-controlled unions, to wage a collective fight against the coming attacks on jobs and living standards. Such a fight must unite workers globally against transnational corporate controlled automation, which will enrich the the wealthiest and most powerful at the expense of workers the world over, and more deeply entrench their power over the people.