Michelin freezes salaries in North America

ERJ staff report (TB)

Greenville, South Carolina -- Michelin North America Inc. will cancel bonuses for its management employees in North America and freeze salaries for its work force in the US, Canada and Mexico, the tyre maker said Feb. 13.

Michelin said the move is intended as an additional action to protect cash flow, reduce costs and maintain competitiveness.

“The current economic crisis requires dramatic action to immediately reduce costs and assure the company is well positioned to rebound when market health returns,” the company said in a statement. “These actions, in conjunction with production reductions at North American facilities, provide an equitable and limited impact on employee compensation.”

From Tire Business (A Crain publication)