Report: Merit pay returns to General Motors
After bankruptcy, The General restored the seven percent pay cuts, and now the company is reportedly restoring merit pay increases for 2010. The Detroit News reports that GM told employees before they left for Christmas break that merit pay was being restored; likely a nice bit of news at the end of a very depressing year.
Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, NJ tells the DetNews that the move was necessary to help GM retain its best workers, adding "Given the number of departures they've had, particularly senior people taking retirements or buyouts, you run the risk of a lot of brain drain and losing institutional knowledge."
[Source: The Detroit News]
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