One of the more controversial types of behaviour to come out of the global financial slump has been corporate executives treating themselves to healthy bonuses and pay rises while employees lose their jobs.
At GM Holden however it is certainly a different story, with several executives, including chairman and managing director Mark Reuss, poised to take a pay cut as the car maker continues to grapple with the global economic downturn.
GM Holden has confirmed these cuts would take effect from May 1 and included a 10 per cent reduction for all executives and a seven per cent reduction for all senior staff.
Executives won’t be reimbursed through other means either, with GM Holden also announcing there would be no bonus payments made to executives this year.
“This is a critical time for our company and the automotive industry,” GM Holden spokesman Scott Whiffin said. “We are grappling with some of the worst market conditions in living memory. To survive in this environment we need to make some rapid changes to cut costs and today we’ve announced a number of decisions concerning executive and senior manager salary arrangements.”
Unfortunately this does not translate to job security for the remainder of Holden’s workforce, with expected job losses in the near future following an announcement by parent company GM to reduce its global workforce by 47,000.
“As a managing director it’s a situation that keeps you awake at night,” Mr Reuss told the National Fleet Conference in Melbourne. “I wish we could carry the entire workforce through this period, but unfortunately these decisions will be necessary for our industry to overcome difficult times and be successful in the future.”
The final decisions on Holden’s structure and operations would be made in the following weeks, with the company still implementing a second car line at its assembly operations in Adelaide to build a new, fuel-efficient, four-cylinder model.