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GM to restore pre-bankruptcy pay levels

September 11, 2009

U.S. automaker General Motors Co. said it would restore pay for salaried workers who stuck with the company through its bankruptcy proceeding.

GM will continue with its plan to cut 6,000 white-collar jobs this year, bringing its total salaried staff positions down to about 23,500, The Detroit News reported Friday. But, an e-mail sent this week by the company’s vice president of global human resources said salary cuts decided in February — which took effect in May — would be restored.

Your continued commitment and dedication throughout this period has been remarkable, Mary Barra’s e-mail said. GM spokesman Tom Wilkinson said, keeping the cuts in place hurts the ability to attract and retain good people.

We’ve got a much smaller company now and the quality of our people is more critical than ever. We are in risk of losing good people, he said.

The salary adjustments do not affect pay for top executives including President and Chief Executive Officer Fritz Henderson, who accepted a 30 percent pay cut in the spring, the News said.

Salaries for the company’s top executives are waiting for approval from the Treasury Department’s so-called pay czar Kenneth Feinberg.


Source: upi



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