Detroit’s Big Three are dishing out cash to retirees and surviving spouses for inflation bonuses. GM paid out $200 million to 267,000 retirees and 72,000 surviving spouses, while Chrysler paid out $41 million, and Ford expects to do the same to the tune of $70 million.
Active hourly employees at all three companies will forgo a COLA payment this year and next as per contract concessions. Salaried employees do not receive such payments, and GM said this month that its 26,000 salaried employees will not receive raises in 2011 either.
GM retiree and former UAW International rep Dick Danjin said he would have liked to see active workers receive COLA as well, given the improved nature of GM’s and Chrysler’s performances.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)