General Motors is going to offer buyouts or early retirement packages to all of its 74,000 U.S. hourly workers represented by the UAW.

The packages will allow GM to get rid of older, high-waged employees and hire new ones in at a much lower tier. GM has not said how many jobs will be replaced.

GM said it will offer more choices for the retirement-eligible workers, including increasing payouts to $45,000 for production workers and $62,500 for skilled workers. Those numbers are much higher than the $35,000 GM offered its UAW-led workers in 2006.

Workers are given the choice of lump-sum payment, annuity, or roll the money into a retirement plan. Current factory workers who retire after 30 years receive pensions around $3,100/month, according to Automotive News. GM is also allowing workers with 26 years to take full-retirement with an adjusted pension.

UAW workers with more than 10 years experience can opt for a $140,000 buyout to leave with only their accrued pension, or if they’ve worked less than 10 years, $70,000.

Either way, the buyouts will bring down GM’s bottom line as the new contract allows it to bring in workers for as little as $14 an hour – almost half of the current average hourly wage.

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