Despite billion-dollar profits, company still looking to control costs
Things may be looking up at General Motors of Canada, but about 1,500 salaried employees won't be sharing in the company's good fortunes next year.
Base salary levels for supervisory, administrative and senior management personnel will stay frozen through 2011 as the company continues to climb its way out of the dire financial straits it found itself in in 2008 and 2009, said a GM spokesman.
Detroit-based parent GM reported a profit of US$2 billion for the third quarter. The company doesn't release earnings for Canada because of the high level of integration in the two countries.
Despite GM's progress over the past two years, the auto business remains challenging and the company needs to control costs in every area of business, said Tony LaRocca, GM's communications director.
GM staff voluntarily reduced their salaries by 10 per cent last year as GM's financial losses increased but the company reinstated their full salary after about six months. However, additional staff payments to pensions and benefits have continued.
Also, about 8,500 GM unionized production employees and skilled tradespeople agreed to wage freezes and reduced benefits until the fall of 2012.
About 26,000 salaried employees in the United States will also have their salaries frozen for 2011.
