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Wednesday, July 18, 2018

GM to cut salaried worker pay under plan: Report

General Motors plans to cut pay for its salaried workers under terms of a restructuring plan.

Written by Reuters | Detroit | Published: February 10, 2009 9:39:23 am

General Motors Corp plans to cut pay for its salaried workers under the terms of a restructuring plan it will submit to the US government on Feb 17,Bloomberg reported.

Quoting unnamed people familiar with the plan,Bloomberg reported that the pay cuts would be in addition to plans to cut thousands of salaried jobs as GM scrambles to cut expenses.

A spokeswoman for GM could not be immediately reached for comment.

GM’s sales in January plunged by 49 per cent and the automaker has said it expects industrywide US sales to be near 10.5 million vehicles in 2009.

As a result,GM executives have said the company is looking for deeper and faster cost-cutting under the restructuring plan that will be submitted to the US Treasury under terms of its $13.4 billion bailout.

In related steps,GM has offered buyouts to its US workers represented by the United Auto Workers union. It remains in talks with both the UAW and bondholders to slash its outstanding debt.

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