GM pays workers early to calm bankruptcy fears

Automotive News | May 28, 2009 – 9:00 am EST

 

GM pays workers early to calm bankruptcy fears
 

DETROIT (Reuters) — General Motors paid about 90,000 U.S. employees three days early this week in an effort to reassure them that their wage payments would not be affected by any bankruptcy filing, a spokesman said.

GM employees would normally have been paid on Friday. Instead, the automaker issued checks on Tuesday, spokesman Tom Wilkinson said.

"It was done to reassure employees worried about bankruptcy," he said.

GM does not expect its payroll payments to be affected by any bankruptcy filing, Wilkinson said.

Earlier on Wednesday, GM said a bond-exchange offer had failed to win support from investors holding $27 billion of its debt. Analysts said that set the stage for a bankruptcy filing by the end of the month.

GM has also pulled forward to today a payment to its roughly 1,500 parts suppliers that would have been made on June 2, company representatives have said.

 

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