GM to Employees: Can I Borrow That Salary?
Not much time passed after Ford chopped compensation for 300 top executives before General Motors decided to free up financial breathing room via payroll costs.
The automaker has enacted a sweeping plan to weather the coronavirus storm by cutting the pay of its salaried workforce by 20 percent, with 6,500 U.S. workers incapable of working from home placed on leave. Employees aren’t expected to swallow the loss out of the goodness of their own hearts, however — GM promises they’ll see the missing money one day.
Per Reuters, the 20-percent payment deferral is a global initiative; white-collar workers can expect the missing pay to appear as a lump sum no later than March 15th, 2021. The pay chop commences April 1st, with The Detroit News citing a company spokesperson claiming it will be in effect for 6 months.
Top brass aren’t spared from the money-saving effort. Executives will see a pay reduction of 25 percent, with the automaker’s senior leadership team receiving a 30-percent pay chop. Board members are on the hook for a 20-percent drop in compensation.
Elsewhere, the 6,500 salaried U.S. workers who can’t work from home (mainly engineering and manufacturing staff) will find themselves part of GM’s paid absence program. While on leave, they’ll receive 75 percent of their pay.
All employees impacted by GM’s latest move will retain their health benefits.
As Ford and Fiat Chrysler toss out dates for a return (or partial) return to production, GM hasn’t followed suit. Past the end of this month, the company plans to assess the state of its facilities — and the pandemic in general — on a weekly basis.
Earlier this week GM made moves to bolster its balance sheet, tapping credit facilities for $16 billion in available cash.
[Image: General Motors]