General Motors announced Friday that it was restoring the salary cuts of many white-collar workers whose pay had been cut this year, in order to fight attrition.
“The automaker was losing staff members because its pay scales were no longer competitive with other automakers and manufacturing companies,” a spokesman told the Associate Press.
That’s good news for everyone. That means demand in the manufacturing sector is strong enough that the affected are not only able to find work, but match and beat their GM salaries.
The news is sure to spark some outrage from taxpayers still angry about the bailout money GM received earlier this year (GM conceded the larger salaries would be paid for with bailout money and the Obama administration approved the decision), but fact that the manufacturing sector, a harbinger of the larger economy is healthy enough to pick off “underpaid” GM employees is a strong sign that employment and salaries are starting to gain traction and the two-year salary free fall may be ebbing.
The earlier pay cuts, ranged from 3 percent for many lower-level workers to 10 percent for executives, the AP reporterd. The company has about 25,000 salaried workers in the United States, mainly in the Detroit area. Salaries for some employees at the bottom of the pay grades were not cut.
The news out of the Detroit giant was not all rosy. Earlier this week, GM announced buyouts and other cuts that would trip 2,900 jobs from the payroll, according to Reuters.
(General Motors Headquarters by jeffwilcox, via Flickr, CC3.0)