Hard times aren't only hitting GM and Chrysler, even Honda is being hit hard during this economic downturn.
Honda has announced that it will cut production in North America by 62,000 units by shutting down factories for 13 days starting in May. In addition the automaker is going to cut pay for salaried and factory workers. Honda has also offered buyouts and early retirement incentives to most of its 32,400 workers in the United States and Canada.
Previously Honda, just like Toyota would pay its workers even when it shut down its factories to reduce inventories. This time Honda claims that hourly workers will not be paid for 6 of the 13 days. Salaried workers are also going to see their paychecks reduced. Bonuses to both hourly and salaried workers are also being reduced or eliminated.
Full Story: Reuters
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Comments (7)
Wow.
Posted by Bradford | April 1, 2009 12:20 PM
Posted on April 1, 2009 12:20
WHAT?!? HONDA?!?
Man, this must be a real low-blow for Noya.
Posted by 426Hemi | April 1, 2009 12:49 PM
Posted on April 1, 2009 12:49
Every car company will need to slim down, there's just no market for as many cars. Less cars to be built and sold = less jobs to build and sell them, regardless of brand.
Posted by Chmilz | April 1, 2009 12:54 PM
Posted on April 1, 2009 12:54
The market is bad, when Honda needs to slim down. It's going to be another ugly year for carmakers.
Posted by longdxcommuter | April 1, 2009 1:12 PM
Posted on April 1, 2009 13:12
"This time Honda claims that hourly workers will not be paid for 6 of the 13 days. Salaried workers are also going to see their paychecks reduced. Bonuses to both hourly and salaried workers are also being reduced or eliminated."
Imagine if you tried this with the UAW, they'd sooner shut the company down than take a pay cut.
Posted by honda | April 1, 2009 3:18 PM
Posted on April 1, 2009 15:18
"Imagine if you tried this with the UAW, they'd sooner shut the company down than take a pay cut."
Looks like 2/3 of them just might have it that way too.
Almost 17 million cars sold in America in 2008
Roughly 9 million are projected for 2009.
That's easy math right there, and nearly matches the 6/13 ratio mentioned. I'm sure the UAW has countless millions stashed away from years and years of collecting dues. That's what the UAW does right? Protect it's members? ;)
Posted by Trooper Bri | April 1, 2009 3:32 PM
Posted on April 1, 2009 15:32
In a way, i'd like to see the big three (or two) go Chapter 13. Then, allow the union to tell their members they have a choice:
Work at GM/Dodge/Ford with an honest wage without them, or not work and stay with the unions and protest while your jobs go overseas.
Posted by rawanduntamed | April 1, 2009 3:54 PM
Posted on April 1, 2009 15:54