In yet another sign of its financial trouble, General Motors Corp. will halt matching payments to all employees’ 401(k) savings plans.
The temporary suspension, which would affect all 1,340 employees at GM’s engine plant in the Town of Tonawanda and the automaker’s entire U.S. workforce, would take effect Nov. 1. The action, which a spokeswoman said is aimed at conserving cash, comes in the face of continued declining auto sales.
The Detroit manufacturer also is said to be preparing for new involuntary cuts in its salaried workforce, which totals about 230 at Tonawanda, although a corporate spokesman did not confirm a report which was carried Oct. 23 by some news media. “GM, like most corporations, continues to align its resources with its business needs to create a more competitive company for the long term,” the company said in a prepared statement. “We remain focused on building sustainable success, not only on short-term results (and) we will continue to assess our overall staffing needs. Any decisions or actions will be shared directly with employees,” it said.
The number of contract workers at the Tonawanda plant has been reduced since last month from 24 to five, plant spokeswoman Nina Price said.
