Wages Frozen at Michelin North America
Wages for Michelin employees in the US, Canada and Mexico are to be frozen throughout 2009. The company, whose net income dropped more than 53 per cent in 2008, is also eliminating bonuses this year for the five or so per cent of Michelin North America employees normally eligible for such an entitlement.
“In light of the severe and continuing global economic downturn and its impact on the tire markets, Michelin is taking additional actions to protect cash flow, reduce costs and maintain competitiveness,” said Michelin North America chairman and president Dick Wilkerson. “The company is profitable in North America. We are taking what we think is prudent action.”
Wilkerson added that “the current economic crisis requires dramatic action to immediately reduce costs and assure the company is well positioned to rebound when market health returns.”