GM Cuts Salaried Workers’ Pay Temporarily by 20%
GM announced it will temporarily cut pay by 20% for its entire salaried workforce, almost 70,000 employees. The cuts begin April 1, 2020, and will be repaid in a lump sum with interested no later than March 15, 2021, according to CNBC.
“GM’s business and its balance sheet was very strong before the COVID-19 outbreak, and the steps we are taking now will help ensure that we can regain our momentum as quickly as possible after this crisis is over,” the company said to CNBC in an emailed statement.
Some employees, about 6,500 who can’t work from home, will get paid leave, receiving 75% of their pay while keeping seniority and health benefits.
Executives will take an additional 5-10% reduction to their compensation, excepting bonuses, stock options and other incentives.
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