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Retirement option a big hit with GM workers

More opt to leave than would cover job losses

Sep 16, 2008 - 04:01 PM

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OSHAWA -- The number of local General Motors workers who have opted to retire or take advantage of the grow-into-retirement plan has now exceeded the number of jobs expected to be lost by the truck plant closing.

CAW Local 222 President Chris Buckley said Tuesday that 2,621 members of the local have chosen to retire or participate in grow-into-retirement, which is a plan offered to workers who have been with GM for 26 or more years. The offer came in July as a result of bargaining after GM announced its intention to shut down the truck plant.

As part of the package workers with between 26 and 29 years of GM work will be paid 65 per cent of their wages from the day they leave until they hit 30 years seniority. After 30 years they will get retirement benefits. They will also receive a car voucher and a lump sum payment of between $50,000 to $96,000 depending on years of service and job in the plant.

"The numbers are encouraging, but I'm still not doing cartwheels," said Mr. Buckley, who said they were looking to cover off the 2025 truck plan jobs that are slated to be cut. "We've still lost an assembly plant in Oshawa."

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