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.


Seniority Lists
Recent Posts!
Bargaining Committee

Mike Herron
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

Tim Stannard
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts
GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Neil Osborne
Retiree Chair
Mike Martinez

Get Text Alerts


*Standard text messaging rates may apply from your carrier