DETROIT (WWJ) -- Fiat chrysler is the latest automaker to tighten its belt amid the coronavirus pandemic.
Salaried workers at Fiat Chrysler will have 20% of their pay deferred for at least the next three months as the company continues to deal with the financial impacts of the COVID-19 outbreak. Much like the action General Motors recently took, salaried workers will have their earnings paid back, though FCA's deal does not include payments with interest.
Deferred payments are set to begin April 1 and will be paid back by March 15, 2021.
FCA executives, meanwhile, will take a 30% pay cut, while CEO Mike Manley says he will take a 50% pay cut, according to WWJ Auto Beat Reporter Jeff Gilbert. Members of FCA's Board of Directors will not receive any compensation for the rest of the year, as the company looks to offset the impact from the pandemic.
With the company's North American plants still temporarily shut down during the virus crisis, Manley says the moves were essential to avoid laying off any permanent employees.
"As the pandemic has spread, we have prioritized creating a safe and healthy workplace but also worked to safeguard the jobs of permanent FCA employees," Manely wrote in a letter emailed to employees Monday. "As we go through this period, we continue to plan for the time we emerge from this crisis and in order to do so, we are taking numerous steps to protect our company during this time."
The 20% pay cuts will impact an estimated 15,000 U.S. employees, according to multiple reports.
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