FCA cuts salaries for all employees

FCA cuts salaries for all employees

March 31, 2020 0 By autotimesnews

Fiat Chrysler Automobiles will temporarily cut salaries for employees worldwide, including senior staff, to avoid layoffs in the context of the coronavirus pandemic.

FCA Executive Director Mike Manley said in a letter to employees that the reduction in payments will begin on April 1 and can last up to three months. For all employees, salaries are “cut” by 20%. The automaker will return the lost funds to its employees no later than March 15, 2021.

Manley added that starting April 1, he will receive half his regular salary over the next three months. In addition, the earnings of the remaining 19 members of the FCA Executive Council will be reduced by 30% over the same time, while FCA Chairman John Eklann and other board members will not receive compensation for the remainder of the year.

“Protecting the financial health of the company is everyone’s responsibility and, of course, begins with me and the management of the FCA,” Manley wrote in a letter.

The manufacturer has closed many factories around the world due to the outbreak of Covid-19. In the US and Canada, production sites will remain unemployed until April 13. Downtime results will affect most of the 53,800 people working around the world.