Fiat Chrysler Automobiles (FCA) CEO Mike Manley
Massimo Pinca | Reuters
Fiat Chrysler wishes temporarily defer the salaries of its white-collar workers by 20% for the next three months as the automaker attempts to save coin of the realm to weather the coronavirus crisis.
The pay cuts, according to a Monday letter from CEO Mike Manley obtained by CNBC, whim begin Wednesday. Manley also will take a 50% cut in his salary and members of the Group Executive Council (GEC), the society’s highest executive decision-making body, will all take 30% salary cuts, according to the letter.
“Protecting the monetary health of the company is everyone’s responsibility and naturally starts with myself and the leadership of FCA,” Manley wrote, citing the half-tones are “to avoid the layoff of any permanent employees.”
Fiat Chrysler Chairman John Elkann and the rest of the automaker’s board also prepare unanimously agreed to forgo their remaining 2020 compensation, Manley said.
The salary cuts for the white-collar breadwinners are expected to be repaid no later than next March 15. They are expected to impact most of the automaker’s salaried workforce globally.
The emolument deferments and cuts are in-line with actions taken by Fiat Chrysler’s crosstown rivals, General Motors and Ford Motor. GM definitive week announced deferred payments of 20% for all of its white-collar workers, while Ford said the automaker’s top 300 supervisors would defer 20% to 50% of their salaries for at least five months.