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DETROIT – General Motors Co. will pay more than $189 million in profit-sharing to 48,000 U.S. hourly workers and millions more in performance bonuses to salaried employees, according to company documents obtained by The Associated Press. GM will pay most hourly workers more than $4,000 each as compensation for its strong financial performance last year, said a person briefed on the bonuses. The payments come less than two years after the automaker emerged from bankruptcy protection with the help of a huge government bailout. They're more than double the previous record payment of $1,775 in 1999, at the height of the boom in sales of sport utility vehicles and pickup trucks. "On the whole, we made tremendous progress last year," CEO and Chairman Dan Akerson said in an e-mail message to employees announcing the payments on Monday. "With our collective teamwork, this can be just the beginning."
GM's 28,000 salaried workers, such as engineers and managers, will get bonuses equal to 4 to 16 percent of their base pay. Fewer than 1 percent will get 50 percent or more; another 3 percent will get from 16 percent to around 50 percent, the person said. GM is not giving annual pay raises. GM made $4.2 billion in the first nine months of 2010 and is expected to soon announce a fourth-quarter profit. The company needed a $49.5 billion government bailout to survive a mid-2009 bankruptcy filing, and the government still owns 25 percent of GM's stock. Chrysler, which needed a $12.5 billion bailout, plans to pay bonuses as well. The government owns about 9 percent of Chrysler stock.
The payments were condemned by a leading critic of the industry bailout in Congress. "Since the taxpayers helped these companies out of bankruptcy, the taxpayers should be repaid before bonuses go out," Sen. Charles Grassley, R-Iowa, said in a statement. "It sends a message that those in charge take shareholders, in this case the taxpayers, for a sucker."
Originally posted by HoldTheBeans
Putting money aside to avert future problems na we got Obama.
Originally posted by rogerstigers
reply to post by Sinnthia
It's the way of Politics.
Senior Administration officials said on Sunday that after reviewing the plans submitted by GM and Chrysler on Feb. 17, the President and his top advisors have determined that, not only did the companies not finish the restructuring moves required of them to get more funding, but they need to go farther than the Bush Administration originally demanded.