It makes sense to cut the contractors first

The role of a contractor is to act as temporary, supplemental workforce to augment staffing levels when there is a gap. Obviously, when there is a workforce reduction these contractors are the first to go. The contractors understand these risks when they accept the position and they are compensated for it. A company such as GM will typically pay the sponsoring company $90/hr to $125/hr per contractor. Obviously the contractor themselves does not receive that full amount of money, but they do walk away with a hefty hourly wage.

Most contractors have already been notified their employment with GM has been terminated. There are likely some areas of the company where contractors will remain beyond the end of 2018. Some of these individuals will simply be asked to leave at the end of their existing contract.

Reposted this from @WtKL5ta-3dhz . Thought the OP had a point.

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In IT you'll easily find a good chunk of contractors making well over 100 bucks per hour... Useless project managers are making over $100/hr too... Now, you have support staff, etc. they get paid less but a generic IT engineering role is likely over $100/hr

We'd need to get use to this as these rates ain't gonna go down.

Sorry to hear that ZK. It sounds like you have a good supervisor and he was looking out for you the best he could - letting you get a jump on finding employment. Hope you have found other employment.

GM management might have contracts with agency providers that dictates minimum staffing levels. They also might be planning a secondary action with agency later. Time will tell.

Godspeed.

I was one of the few people who was told by the management that my job was on the line and I should take the package.

I have worked for GM for 22 years. What’s insane that there are bunch of contract employes who get paid 70- 80 dollars n hour are still employed in my group. How fair is it for an American to loose a job but the contract employees on opt and h1b visa not loose their job and still be employed with General Motors. There doesn’t seem to be any logic behind these layoffs.

The billing rates for contractors are far more in line with the ranges of $30 to $75/hr, and not the generous $90-$125 amount as mentioned. Perhaps that's a rarity depending on the classification, but not the norm. Yes it is true, the employee only receives a portion of it. Having spoken with recruiters, and various GM managers in times of disarray, they're oddly rather forthcoming about the billing rates per job classification. These rates are set by Allegis.

It is true contractors are the first out the door, but they are also the first back in the door. When the company right sizes it's salary staff, any expansion will likely be met with contractors. GM's policy at least currently, is to maintain a 80/20 salaried to contractor ratio, and as you might expect, there will be minimal to no contractors left after this entire purge. When the dust settles, it should be a hiring bonanza for contractors again.

In the end all of you will be RIF'ed

Thread regarding General Motors layoffs

It makes sense to cut the contractors first

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