GM says it saved $50 million by instituting the cuts during the four months they were in effect, but the decision to restore the pay levels was made by GM's new board of directors and executive management. Company spokesman Tom Wilkinson says the paycuts would help retain the employees it had left, adding "we've got a much smaller company now and the quality of our people is more critical than ever. We are in risk of losing good people."
Recent news for white collar workers at GM isn't all rosy, though, as the company plans to cut up to 6,000 salary workers through attrition and involuntary layoffs. GM stated earlier this week that it plans to reduce its white collar headcount by 1,000 workers by the end of September.
[Source: Detroit News | Image: Bill Pugliano/Getty]