BMW and possible employee pay cuts

The car industry shows no signs of improving and that is not good for BMW (Bayerische Motoren Werke AG) who have taken the decision to reduce board members bonuses by 40 percent. The 100,000 staff is also facing pay cuts.

2008 has not been a great year for BMW, as cars sales were down by 58,000; its net profit was just €330m (£310m). That is almost 90 percent lower than 2007. BMW have already shed 7,500 jobs worldwide, 850 were at its Mini plant in Cowley, Oxfordshire, and 4,000 staff has taken voluntary redundancy.

BMW Senior executives are to lose 30 per cent of its bonus, and the carmakers workforces are facing a 10 per cent drop in salaries. Chief executive, Norbert Reithofer will still be paid €600,000 basic salary, but with the drop in bonus, he will only get €1.65m instead of €2.3m. it must be so hard for him.

Source

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