GM to Employees: Can I Borrow That Salary?

Steph Willems
by Steph Willems
gm to employees can i borrow that salary

Not much time passed after Ford chopped compensation for 300 top executives before General Motors decided to free up financial breathing room via payroll costs.

The automaker has enacted a sweeping plan to weather the coronavirus storm by cutting the pay of its salaried workforce by 20 percent, with 6,500 U.S. workers incapable of working from home placed on leave. Employees aren’t expected to swallow the loss out of the goodness of their own hearts, however — GM promises they’ll see the missing money one day.

Per Reuters, the 20-percent payment deferral is a global initiative; white-collar workers can expect the missing pay to appear as a lump sum no later than March 15th, 2021. The pay chop commences April 1st, with The Detroit News citing a company spokesperson claiming it will be in effect for 6 months.

Top brass aren’t spared from the money-saving effort. Executives will see a pay reduction of 25 percent, with the automaker’s senior leadership team receiving a 30-percent pay chop. Board members are on the hook for a 20-percent drop in compensation.

Elsewhere, the 6,500 salaried U.S. workers who can’t work from home (mainly engineering and manufacturing staff) will find themselves part of GM’s paid absence program. While on leave, they’ll receive 75 percent of their pay.

All employees impacted by GM’s latest move will retain their health benefits.

As Ford and Fiat Chrysler toss out dates for a return (or partial) return to production, GM hasn’t followed suit. Past the end of this month, the company plans to assess the state of its facilities — and the pandemic in general — on a weekly basis.

Earlier this week GM made moves to bolster its balance sheet, tapping credit facilities for $16 billion in available cash.

[Image: General Motors]

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  • JD-Shifty JD-Shifty on Mar 28, 2020

    I'm saving at least 200 bucks a month in gas. I love working from home

    • Cprescott Cprescott on Mar 30, 2020

      Despite having everything that I need to do my job at home, I am thankful to be at work where everything is within my grasp and I can manage the operations without a hiccup. I tried working at home for two days and hated my job. I am the only here at the office but I love my job and I am more effective.

  • Cprescott Cprescott on Mar 30, 2020

    GM has over $20 billion of taxpayer dollars that they neither paid taxes or interest to steal - why are they having to go into panic mode by stealing employee income?

  • ToolGuy VW (marque not group) and Tesla very nearly switched positions on a YTD basis.
  • RHD Inexpensive gasoline appears to be a thing of the past. ILO is correct - we have enough sunlight, wind and emerging ocean wave energy to power the entire country and then some. Clean air is nice, and being free of the whims of OPEC, geopolitics and hugely profitable oil companies will do all of us a world of good.
  • Raymond Segura Can you tell me where I can get the rear bumper for 69 impala?
  • Art Vandelay some of the crazy numbers I get. Percentages look bigger with any fluctuations with low volume makes and brands leaving the market will see massive month over month changes. But what’s with Buick? I still see the occasional ad on TV and yet the drop is disproportionate even compared to all the other GM brands.
  • Master Baiter "There is no mandate for consumers to buy EVs, not in any country or state. That’s made up."Right. And you are not mandated to purchase a toilet that only uses 1.6 gallons/flush. You could choose to not have a toilet--just go in the woods, like the bears do.