If the hourly are going to take a 10 to 25% cut in their salary (and you can bet your last dollar that they won't be allowing any type of overtime) you are going to have alot of crazy people. Most of those men and women live above their means. In fact I know people where overtime is their extra money aka money they can spend because their pay and some overtime is taking up by bills and mortgages and such.
http://www.therepublic.com/2020/04/03/cummins-reduces-pay-working-hours-for-employees/
Companies that receive part of the $2T stimulus package are required to keep employees on their payroll through September. Cummins said the pay cut would last until the end of Q2 but not beyond Q3 (Septmeber). It would not surprise me if Cummins lobbies for and receives part of the stimulus package then has a massive RIF in Q4 after it meets the stimulus requirement. Capitalism at its finest my friends.
The next step is a grand RIF once corona crisis is over. FCA has suffered and now it is the turn of their suppliers.
They should have done this for the last few decades instead of RIFs every few years, getting rid of loyal high pot employees and replacing with cheaper, younger people. They would have been better off as a company, internal culture and loyalty from older workers, who would have accepted a cut in salary instead of looking for a lawsuit.
Any changes to current severance packages will trigger massive suits and the biggest class action suit ever. Every media outlet will be contacted resulting in bad bad press for them regardless of the current situation. They have the money, it would be very foolish on their part.
Another former coworker confirmed with HR that we will be getting the severance Cummins laid out in the contracts we signed.
I hate to say this, but the odds may be good that they will cut those severance packages but if they do then the employee can sue them on breach of contract if they agreed and signed on a contract to leave for such and such. But with what is happening today to business, they may be able to stall and even win.
Also this still doesn't stop the possibility that people have said of another RIF this second quarter that is much bigger.
So what are the odds they cut our severance packages, for those of us axed in the RIF?
So glad I sold my house and got the hell out of Columbus before this sh–show!