Some firms are rescinding pay cutsPosted: October 5, 2009
General Motors Co. has rescinded white-collar pay cuts it made last spring as it desperately tried to conserve cash and avoid filing for bankruptcy protection.
The cuts, ranging from 3 percent for many lower-level workers to 10 percent for executives, saved the company about $50 million but eventually it spent 40 days under bankruptcy court protection, emerging on July 10. The cuts affected workers in the U.S. and Canada as well as some overseas countries.
From the Austin-American Statesman:
Advanced Micro Devices Inc. told workers this week that it will restore pay rates in December that were reduced early this year in the face of the economic downturn. CEO Dirk Meyer told workers in an e-mail message this week that the pay reinstatement is coming. AMD announced in January that it was cutting jobs and temporarily reducing pay for workers. The pay cuts ranged from 5 percent for hourly workers to as high as 20 percent for a few top executives, including Meyer.
American Express Co., the credit- card issuer that repaid the U.S. bank bailout program, plans to reverse compensation cuts imposed seven months ago because the economic outlook has improved. Annual merit increases and contributions to retirement plans will resume in January, and a 10 percent salary reduction for managers in the senior vice president ranks and above will be rescinded, according to a memo today from Chief Executive Officer Kenneth Chenault to employees.
This doesn’t look like deflation to me.