GM considering tying pay incentives for workers to vehicle quality

GM Renaissance Center

GM is considering tying pay incentives for both hourly and salaried workers to vehicle quality, according to North American President Mark Reuss. While informal discussion with the UAW is underway, serious talks for a new contract will come in the summer. Union president Bob King has also said the union is in need of a plan that will allow members to gain financially as the industry recovers.

On hourly employees, Reuss said the following: “When we’re not performing, I’m not going to be paid out, and neither is anybody else,”. “They all work in the same company as I do,”.

Last week, CEO Dan Akerson told the Free Press that the company has established a program of enhanced variable pay for white-collar workers in lieu of salary increases. It seems that all across the board GM is demanding higher performance from its workers in pursuit of higher performance as a company.

Good idea or bad idea? Let us know in the comments section after the jump.

– By: Stephen Calogera

Source: Free Press