Detroit – General Motors Corp., which says a return to profitability will require sacrifices from all involved, announced plans Tuesday to rein in white-collar pension and health-care expenses, slash the dividend and trim executive salaries – moves some analysts say suggest it might seek benefit cuts from union workers.
The cuts in health benefits for salaried retirees, planned changes to its pension plan for salaried U.S. workers and decision to cut in half GM’s dividend support the company’s ongoing turnaround efforts, which include plans to shed 30,000 hourly jobs and close 12 facilities by 2008.
GM has been under pressure from one of its largest shareholders, billionaire Kirk Kerkorian, to take more aggressive steps to revive profitability.
“Everybody’s got a piece of it,” GM chairman and CEO Rick Wagoner said at a news conference.
