Amadeusz Juskowiak

Gm gm cuts wage boosts for salaried employees

General Motors Corp has changed its method of disbursing merit raises for salaried employees and is reducing the size of the merit raise pool to 35 pct of the total amount available for salaries from 55 pct last year a company spokesman said

He said GM will no longer include merit raises in the calculation of base pay but will make them simply lumpsum payments As a result the merit raises will not be included in the calculation of pensions and other benefits The change affects about 109000 salaried workers in the US and Canada

GM last year eliminated cost of living increases for salaried workers making pay increases based on merit alone As a result of the new action GM has effectively frozen the base pay rates of salaried employees

The spokesman said GM is making the change to remain costcompetitive with other US automakers

GM is currently in thje midst of a program to cut employment of salaried workers by 25 pct

Reuter