GM Korea said on Monday it would delay payment of 20% of the salaries of management level employees from April, as the company looked to protect its financial health as global demand for its products continued to decline due to the COVID19 coronavirus.
The South Korea subsidiary of General Motors told its local staff it would pay the outstanding salaries as a lump sum later in the year or in the first quarter of 2021 once the health crisis had abated and business conditions improved.
Go deeper with GlobalData
For senior management, GM Korea said it would also cut their salaries by between 10% and 20% in addition to the delay in paying 20% of their salaries, as part of its cost cutting measures.
Earlier this month GM Korea announced it had agreed with unions to freeze the pay of its plant workers for 2019, citing falling demand for its vehicles.
GM Korea said this latest move was in line with a similar policy recently announced by its parent company that it would delay payment of 20% of the salaries of its 69,000 employees worldwide after economic activity in key markets such as North America and China slowed sharply in recent months due to the global virus pandemic.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
