GM pays workers early to calm bankruptcy fears
With General Motors constantly making headlines predicting the company’s demise, it is understandable that its employees may not be all that confident about job security.
In an effort reassure them that their wage payments would not be affected by any bankruptcy filing, GM has paid around 90,000 US employees three days early this week.
Normally GM employees would be paid on Friday; instead the automaker issued pay checks on Tuesday.
"It was done to reassure employees worried about bankruptcy," spokesman Tom Wilkinson said.
It is even more likely that GM will need to file for bankruptcy following a failed bond-exchange offer from investors holding $27 billion of its debt.
Analysts now expect GM will have to file for bankruptcy by the end of the month, although the company does not expect this to interrupt its payroll payments.
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