APRIL 3, 2020 — PAY CUTS AND REDUCED HOURS
The impact from the pandemic on the global economy has been sudden and is growing, and it is imperative for us to respond quickly to maintain our strong financial position,” said Tom Linebarger, Chairman and CEO, Cummins Inc.
In response to lower demand and customer shutdowns in several countries, the company is taking the following temporary actions to lower costs:
A reduction of 50 percent in the salary of the CEO
A reduction of 25 percent in Director compensation
A reduction in salary for all other employees in the United States of between 10 and 25 percent and a reduction in working hours
These reductions in pay are intended to be a temporary measure; the company will continue to monitor business conditions closely and reassess the program at the end of the second quarter.
“These are difficult but necessary actions and I know they will have a real impact on the lives of our employees and their families,” added Linebarger. “I appreciate their understanding and support as we work through these challenging times together. I want to thank our employees for their continued commitment to ensuring our customers receive the products and service they need to provide essential support to the global economy.”
Original Post…
Columbus, Indiana-based Cummins, a major manufacturer of truck engines and associated products has announced that the company will layoff approximately 2,000 salaried employees worldwide by the end of the first quarter in 2020. The heaviest impact is expected to affect employees at the company’s Indiana headquarters.
According to a company spokesperson, "As we communicated to our employees last week, demand has deteriorated even faster than expected, and we need to adjust to reduce costs. We understand this is incredibly difficult for those directly impacted and for all employees across the company. Our employees are important to the success of our company and necessary actions like this are incredibly tough and disappointing. However, by taking actions now, we can navigate this downturn and emerge stronger when markets return just as we have done in the past."
It is also being reported that Cummins is continuing to shift production from numerous plants to Mexico in preparation for the new USMCA (United States, Mexico and Canada) trade agreement. According to a company spokesperson, “We're moving lines of filtration production from the U.S. to Mexico and expanding the plant in Ciudad Juárez in order to meet demand for diesel fuel injection in the Americas. The tariffs levied by the U.S. on Europe and China are helping this process; it makes companies look to Mexico as a place where they can relocate production lines to supply the U.S. market.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
