DETROIT (WWJ) -- General Motors has announced temporary pay cuts as it continues to try to conserve cash without cutting jobs amid the coronavirus pandemic.
GM is cutting its salaried workforce's payroll by 20% as the company promises to pay it back with interest in the future, emphasizing they expect the impact of the virus to be temporary.
The deferments, which will begin April 1, could last up to six months, with the money repaid with interest later this year or in early 2021. Officials say the deferment will be repaid in a lump sum no later than March 15, 2021.
Healthcare benefits will not be impacted by the move.
Top executives will take a 5 or 10% pay cut, while board members will see a 20% cut, according to WWJ Auto Beat Reporter Jeff Gilbert.
With plants at an indefinite standstill across North America, there are 6,500 workers who do jobs that are not needed at the moment -- like salaried workers at plants who are unable to work remotely. Gilbert says those workers will continue to get 75% of their pay as part of salaried downtime paid absence.
"GM's business and its balance sheet was very strong before the COVID-19 outbreak and the steps we are taking now will help ensure that we can regain our momentum as quickly as possible after this crisis is over," a spokesperson said in a statement.
>>> Coronavirus In Michigan: What You Need To Know On Thursday, March 26
