Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - General Motors Co | d238554d8k.htm |
| EX-99.1 - NEWS RELEASE - General Motors Co | d238554dex991.htm |
 General Motors Company
2011 GM-UAW Labor Agreement
September 28, 2011
Exhibit 99.2 |
 Forward Looking Statements
In this presentation and in related comments by our management, our use of the
words “expect,”
“anticipate,”
“possible,”
“potential,”
“target,”
“believe,”
“commit,”
“intend,”
“continue,”
“may,”
“would,”
“could,”
“should,”
“project,”
“projected,”
“positioned”
or
similar expressions is intended to identify forward looking statements that
represent our current judgment about possible future events. We believe
these judgments are reasonable, but these statements are not guarantees of
any events or financial results, and our actual results may differ
materially due to a variety of important factors. Among
other
items,
such
factors
might
include:
our
ability
to
realize
production
efficiencies and
to achieve reductions in costs as a result of our restructuring initiatives and
labor modifications; our ability to maintain quality control over our
vehicles and avoid material vehicle
recalls;
our
suppliers’
ability
to
deliver
parts,
systems
and
components
at such
times to allow us to meet production schedules; our ability to maintain adequate
liquidity and financing sources and an appropriate level of debt, including
as required to fund our planned significant investment in new technology;
our ability to realize successful vehicle applications of new technology;
and our ability to continue to attract new customers, particularly for our
new products. GM's most recent annual report on Form 10-K and quarterly
report on Form 10-Q provides
information
about
these
and
other
factors,
which
we
may
revise
or
supplement in future reports to the SEC.
1 |
 Key
Takeaways 2
•
Maintained GMNA break-even point
•
Minimal P & L impact
•
Protected our balance sheet
•
Increased flexibility to add U.S. jobs |
 2011
GM-UAW Agreement Overview •
Key non-compensation items
–
Entry Level transitioned to Defined Contribution pension plan
–
No pension increases
–
Permanent elimination of “JOBs Bank”
–
Special Attrition Program (SAP) for skilled trades
–
Elimination of Legal Services Plan for active / retiree
•
Key compensation items
–
Entry Level maximum wage rates increased
–
No base wage increase for Tier I employees
–
Cost of living (COLA) still suspended
–
Lump sums and larger ratification bonus in lieu of base wage
increases
–
Gain sharing plan linked to quality
–
Simplified and transparent profit sharing formula, which is capped
•
Strategic investment in U.S manufacturing
3 |
 Profit Sharing Comparison
New
(Capped)
Old*
(Not Capped)
4
* Estimate based on U.S. eligible profits as defined by old plan
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
0
5
10
15
GMNA EBIT Adjusted ($B) |
 U.S.
Hourly Workforce Demographics 5
% of U.S. Hourly Workforce
Production
Skilled
Total
Retirement Eligible –
All Types
Memo:
-
Detroit Competitors
34%
58%
39%
17%
Data as of 12/31/2010, Hourly Workforce Demographics Study
•
$10K retirement incentive for all eligible employees who retire
between October 1, 2011 and September 1, 2013
•
Special Attrition Program for skilled trades
–
Incremental $65K retirement incentive if retired by March 31, 2012
|
 U.S.
Hourly Labor Cost Historical Perspective
$16B
$5B
$11B
Retiree
Healthcare
Active
Year-End U.S.
Hourly Employees
(000’s)
111
49
78
6
For periods prior to July 10, 2009 information is related to General Motors
Corporation (Old GM), our predecessor entity $4B
$12B
$8B
$5B
$3B
2005
2007
2010 |
 Historic GM-UAW Contract Settlement Economics
‘99
‘03
Fully Loaded Active Hourly Rate CAGR
7
For periods prior to July 10, 2009 information is related to General Motors
Corporation (Old GM), our predecessor entity 6%
8%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
7%
4%
(4)%
(8)%
1%
‘07
‘09
‘11 |
 Estimated Expense Impact
8
$ Millions F / (U)
2011 CY
2012 CY
2013 CY
Compensation
Related
Impact
*
(135)
(220)
(230)
Special Attrition Program
(Skilled Trades)
(90)
55
65
Elimination of Legal Service
**
50
145
145
Estimated Expense Impact
(175)
(20)
(20)
* Includes ratification bonus, lump sum payments, tier II wage increase, profit sharing, and
layoff provisions
** Impact from elimination ends in 2013
|
 Key
Takeaways 9
•
Maintained GMNA break-even point
•
Minimal P & L impact
•
Protected our balance sheet
•
Increased flexibility to add U.S. jobs |