What Would You Do for $140,000?

Hmmm, after watching a few reality shows, I know I wouldn't eat live bugs, or live on some island without indoor plumbing, while competing with other people who don't even own toothbrushes. No, $140,000 isn't worth that to me.

(You, of course, may be willing to eat buckets of cockroaches for the same amount of money. To each his own.)

Would you be willing, however to give up you job? CNN reports:

In an effort to shave ongoing losses, General Motors offered lucrative buyouts Tuesday to 74,000 employees - its entire U.S. hourly workforce...
To try to stem automotive losses that have dogged the company since 2005, the company is making a range of offers, up to cash payments of $140,000 to the remaining 74,000 GM workers represented by the United Auto Workers union.

It's a buyout, not a layoff. The difference is that instead of being picked to lose your job, you can choose. Do you want to take the cash and run, or do you want to stay.

62% of the population being targeted is already retirement eligible. 62 Percent! That, in and of itself, explains why GM is willing to do this. They want to get a cheaper workforce, and because of unions, those with the seniority haven't been going anywhere. They won't negotiate lower pay and benefits for themselves. And why should they? Secure job, lots of privileges. (For an interesting view on being low in seniority in a union--albeit a nurses union, not an automotive one--go read this post from Nurse K. Keep in mind that this is her experience at her hospital in her union. Not all unions have the same rules.)

So, GM decided the best way out of this is to have a "do-over." Let's wipe out the workforce we have and get a new one.

The new jobs won't pay as well, and won't have the fabulous benefits. But, they will be jobs. Will this work out for GM? Time will tell.

So, would you take the money, or would you keep your job? It's not like there are a zillion other auto plant jobs waiting for you.

(hat tip Blue Crab Boulevard)