News reports say General Motors of Canada has confirmed its employees are slated to receive performance bonuses this year.
Company spokesman Jason Easton told The Canadian Press that Canadian employees would get between four and 16 per cent of their salaries as a bonus.
Easton says GM has a long-standing policy of rewarding employees financially when the automaker has performed well, noting that the 2010 sales tally was better than expected so bonuses would be issued (GM has not released its financial statement on 2010 yet).
Previous reports show GM's American division plans to paying out $189-million in profit sharing to thousands of workers south of the border.
This news follows on the heels of Chrysler Group’s decision to reward salaried employees with bonuses for performance as well.
Chrysler said roughly 11,000 white-collar workers would receive an average bonus of $10,000, according to numerous published reports. And while both automakers are making the financial case – based on better than anticipated revenue coming out of 2010 – there is potential the decision could upset the company’s blue-collar workforce and the public following government bailouts in 2009.
According to Bloomberg News, top executives at both companies remain subject to pay restrictions.
- With files from Bloomberg News, The Canadian Press