DaimlerChrysler’s Chrysler Group is delaying merit pay increases for salaried workers for the second year in a row while raising white-collar workers’ contributions to the cost of prescription drugs, the Detroit News reported.
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The paper, citing “people familiar with the situtation”, said merit increases for Chrysler’s approximately 10,000 eligible salaried workers are traditionally awared on July 1, but won’t be considered until October 1. This is the second consecutive year merit raises at the car maker have been deferred by at least three months, the report added.
According to the Detroit News, for the second time in six months, Chrysler is raising the contribution some salaried employees must pay for prescription drugs.
The paper noted the moves come as Chrysler struggles to cut costs and boost revenues at a time when US car and truck demand is down 4% so far this year and its own sales reduced 7.2%.
