FCA Follows GM in 20% Pay Deferral for Workers
Fiat Chrysler Automobiles is deferring 20% of salaried workers’ pay, following GM’s lead last week. FCA’s only lasts through June, for now; GM’s goes until March 2021 at the latest. FCA CEO Mike Manley’s salary is being cut in half.
It’s not just the small- and bigwigs getting a cut. The medium-wigs of FCA’s Group Executive Council are taking a 30% cut, as well. And FCA Group chairman John Elkann is getting no pay for the rest of the year.
This is what’s going to get us through this crisis. Everyone—landlords, renters, banks, businesses, customers—has to give a little. If we all give a little, hopefully no one has to give a lot.
Salaried employees globally who are “not impacted by local downtime plans” will take the 20% cut. But it will vary by country, and “agreements may be required,” according to Automotive News. No word on when the deferred payments will be paid back. These deferrals hopefully allow FCA to avoid layoffs.
“Protecting the financial health of the company is everyone’s responsibility and naturally starts with myself and the leadership of FCA,” Manley said.
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