Fiat Chrysler Automobiles restores full pay to salaried workers
Company had cut some salaries and partially delayed others while attempting to conserve cash during coronavirus pandemic
Fiat Chrysler Automobiles moved to reinstate full pay for its salaried workers earlier this month after cutting some salaries and partially delaying others while attempting to conserve cash during the coronavirus pandemic.
On April 1, senior leaders of the company took pay deferrals equivalent to 20 percent while global executives took pay cuts ranging from 20 percent up to 50 percent at the CEO level in order to "protect the financial health of the company," Fiat Chrysler told FOX Business on Friday.
FIAT CHRYSLER POSTS LOWER-THAN-EXPECTED OPERATING LOSS IN SECOND QUARTER
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"We deeply appreciate the shared sacrifice from our employees and leadership whose pay cut and or deferral has now been reinstated since July 1," Fiat said.
The company's nonexecutive board of directors and board chairman also unanimously agreed to forgo their remaining 2020 compensation in April; that remains unchanged.
The brand logos of Fiat, Jeep and Alfa Romeo are emblazoned on the facade of the Fiat branch and Fiat Chrysler Automobiles Deutschland AG in the east of Frankfurt on July 22, 2020. (Arne Dedert/picture alliance via Getty Images)
The company followed up on its original intention to reinstate pay after the April-June period, a time when the Italian American automaker had fared better than expected.
The company posted a smaller operating loss than it had projected during the three-month period ending in June with its adjusted earnings before interest and tax declining 928 million euros ($1.10 billion) rather than the decline of 1.87 billion euros analysts had projected, according to Reuters.
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The group’s North American factories began production in May after shuttering to stem the spread of the virus earlier this year.
Fiat Chrysler is also in the process of a merger with French carmaker PSA Peugeot. The deal between the carmakers remains on track to close by the end of the first quarter of 2021.
The Associated Press contributed to this report.