http://money.cnn.com/2009/04/20/news/companies/general_motors_cuts/index.htm?postversion=2009042010
This article is about GM cutting a large amount of salaried employees as part of a previously announced plan. These cuts will affect nearly all GM operations in the U.S. As the recession has hammered the auto industry, the Treasury Department has loaned GM (GM, Fortune 500) $13.4 billion so far and is looking at providing additional assistance to help the automaker avoid bankruptcy. President Obama announced March 30 that the company needed to make additional cuts to become viable and receive additional government loans. Many salaried employees have retired or left voluntarily to help GM in this crisis. U.S. salaried employees who keep their jobs will receive pay cuts effective May 1 and running through the end of this year. Executive employees will have their base pay reduced by 10%, and many other salaried employees will see reductions of 3% to 7%.
This article was pretty helpful and the information given was good. GM explained their plans to avoid bankruptcy and President Obama made it clear that cuts are needed and are part of the 10,000 salaried positions GM plans to eliminate around the world.
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Edwin, Solid summary, short article. Actually, the interesting thing here is that salaried employees are usually the ones who work in offices, not assembly lines. Usually it's the assembly line workers who get the layoffs. Either things are really bad or GM or Obama is leaning on them to be more even-handed in who suffers. What do you think?
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