GM, Chrysler Workers to Get Bonuses
According to a recent Yahoo News article, General Motors Co. will give them performance bonuses of 4 to 16 percent of their base salaries this year. A small number of employees could receive as much as 50 percent extra, according to a statement released by the company on Thursday. The company will base the increases on each employee's performance as well as the company's financial results.
Chrysler Group LLC will pull a similar move this year, with payments expected to start today. Both auto giant needed government bailout money in 2008 and 2009 in order to stay in business, yet now they are choosing these increases in pay to keep their workers loyal.
"Details regarding salaried performance awards are considered confidential employment records," said Chrysler spokesman Gualberto Ranieri.
Most of the carmakers in the US market have managed to perform better than expectations last year, while some even beat their pre-crisis result. GM made $4.2 billion in the first three quarters of last year and is expected to post a fourth-quarter profit soon. Meanwhile, Chrysler lost $652 million last year, because of costs involving the improved model line, but is predicting a net profit this year.
This should satisfy the demand of the United Auto Workers union, at least for the time being.