General Motors Co [GM.UL] has ended temporary pay cuts for salaried workers that were put in place four months ago to preserve cash before the automaker filed for bankruptcy, a spokeswoman said.
GM salaried workers were notified of the step by email on Friday after the action was reviewed by the automaker's board of directors earlier this week, spokeswoman Brenda Rios said.
Detroit-based GM had cut salaries for white-collar workers in the United States by between 3 percent and 10 percent as of May 1 to save cash. Higher-paid workers had taken proportionally larger cuts.
The move announced on Friday reinstates pay for salaried workers effective Sept. 1, Rios said.
We need to keep everyone motivated, Rios said. This is the group that's going to carry the new GM forward.
GM had 29,600 salaried workers in the United States at the end of 2008 and plans to end this year with 23,700 workers.
Earlier this week, GM said 1,900 white-collar workers had accepted buyout offers to leave the payroll. The automaker plans to cut another 1,000 jobs this month to bring it closer to its year-end target.
Compensation for GM's top executives, including Chief Executive Fritz Henderson, remains subject to review by the U.S. Treasury.
GM came through a fast-track bankruptcy in July under the 61 percent ownership of the U.S. government with $50 billion in emergency funding. (Reporting by Kevin Krolicki, editing by Matthew Lewis)