The worlds number one auto maker, General Motors, reached an important agreement with the United Auto Workers. It’s offering buyouts to all 74,000 UAW employees. Not only that, it’s a landmark offer that’s trying to get new workers at lower rates.

General Motors also announced that it lost nearly $39billion last year, that’s more than any American auto maker ever. Two incredible announcements that will have crucial consequences.

It’s splattered all over the front pages. GM is offering to buy out all current UAW employees and the rank and file knows why. The offer is an attempt by GM to phase out higher waged employees and replace them with workers that’ll make half as much.

There’s a lot to think about, here are the offers:

• $45,000 pension incentive for production workers
• $62,500 pension incentive for skilled trades workers
• A pension with full benefits for those at least 50 years old with 10 years experience
• Fixed monthly payments for those with 26 to 29 years of experience until full retirement kicks in
• $140,000 complete buyout severing all ties with GM ($70,000 for those with less then 10 years)

UAW leaders tell NBC25, they question the timing of the buyouts, the same day GM announced it lost nearly $39billion in 2007. Union officials say, it could be a scare tactic to get more people out.

The last time General Motors offered a buyout was in 2006. Then, 34,000 workers accepted it. This tie around, GM Chairman Rick Wagoner doesn’t expect as many people to take it. Employees have 52 days to decide to accept the buyout provisions. The goal is to have employees leave no later than July 1.