General Motors 2012 Annual Report Download - page 26

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Restructuring Activities, Special Attrition Programs, Labor Agreements and Benefit Plan Changes
We have previously executed various restructuring and other initiatives, and we plan to execute additional initiatives in the future,
if necessary, in order to align manufacturing capacity and other costs with prevailing global automotive production and to improve the
utilization of remaining facilities.
Through December 31, 2012 the active separation programs related to Germany and the United Kingdom had a total cost of
$0.4 billion and had affected a total of 2,550 employees, of which $0.3 billion related to a program initiated in Germany in 2010. This
program was essentially completed in 2012. We expect to complete the active programs in 2013 and incur an additional $0.2 billion,
which will affect an additional 700 employees.
In the year ended December 31, 2012 GMIO and GMSA each recorded charges of $0.1 billion related to additional separation
programs implemented in Korea, Australia and Brazil.
2012 CAW Labor Agreement
In September 2012 we entered into a collective bargaining labor agreement with the Canadian Auto Workers Union (CAW), which
was ratified in September 2012. The agreement covers the wages, hours, benefits and other terms and conditions of employment of the
CAW represented employees. The key terms and provisions of the agreement are:
• Lump-sum payments of Canadian Dollar (CAD) $3,000 to certain CAW employees were made in October 2012 and additional
lump-sum payments of CAD $2,000 will be paid annually in December of 2013, 2014, and 2015. The lump-sum payments will
be amortized over the four year agreement.
• Hourly employees who retire on or after January 1, 2013 will be offered a new lump-sum distribution option at retirement in
the defined benefit pension plan and new hires will be covered by a hybrid defined benefit/defined contribution pension plan.
The lump-sum payment option had an insignificant effect on the defined benefit pension plan and has been recognized in the
year-end plan remeasurement for 2012.
• Due to the expected closure of the Oshawa Consolidated Plant in June 2014, impacted employees will be eligible for a
voluntary restructuring separation incentive program in accordance with the existing collective bargaining agreement that
provides cash and a car voucher. This may range up to $0.1 billion and will be included in our restructuring liability, net of
existing liabilities, upon irrevocable acceptance by both parties.
• During the life of the agreement and subject to market conditions and demand, we plan to make total manufacturing program
investments of $0.7 billion.
2011 GM-UAW Labor Agreement
In September 2011 we entered into a collective bargaining labor agreement with the International Union, United Automobile,
Aerospace and Agriculture Implement Workers of America (UAW). The agreement covers the wages, hours, benefits and other terms
and conditions of employment for our UAW represented employees. The key terms and provisions of the agreement are:
• Lump-sum payments totaling $0.4 billion to eligible U.S. hourly employees in 2011 through 2014. The lump-sum payments
are being amortized over the four year agreement period.
• Termination in 2012 of a cash balance pension plan for entry level employees. Participants in this plan and all employees hired
on or after October 1, 2007 participate in a defined contribution plan.
• A plan which provides legal services to U.S. hourly employees and retirees will be terminated on December 31, 2013. In
September 2011 we remeasured this plan resulting in a decrease of $0.3 billion in the other postretirement benefits (OPEB)
liability and a corresponding pre-tax increase in the prior service credit component of Accumulated other comprehensive
income, which will be amortized through December 31, 2013.
General Motors Company 2012 ANNUAL REPORT 23