Shares of General Motors Corp. (GM) were higher Thursday amid growing momentum surrounding its restructuring efforts.
According to reports in the Detroit Free press, GM has started hiring temporary workers at some of its North American plants as it moves to transition to a smaller workforce. The paper, citing a GM spokesperson, said that while the temporary workers will be UAW members, they will be paid lower wages – about $8 an hour less than permanent workers - with no benefits.
On Wednesday, shares of GM rose by more than 8% after Merrill Lynch upgraded the stock, expressing optimism about the number of employees who will accept the automaker’s buyout program, saying the figure could go as high as 30,000.
“GM and its shareholders are clearly better off if buyouts are widely accepted, as are workers,” said Merrill analyst John Murphy, in a research note.
GM lost more than $10 billion in 2005, and is in the process of shuttering 12 North American plants and cutting 30,000 jobs in an attempt to stem those losses.
Shares of GM were up 5.6%, or $1.49, at $28.00 Thursday morning.