DETROIT -- While Wall Street last week was absorbing the details of General Motors' slashed earnings forecast for 2005, the automaker's salaried workers were hit with some bad news of their own.
GM told 38,000 salaried workers in North America that they won't be getting merit pay raises this year. GM also slashed by 60 percent from last year the amount of matching funds it puts into employee retirement accounts.
To cut payroll costs, GM said employees can buy as many as three extra vacation days this year, at $175 a day. GM isn't ruling out more cuts, including layoffs, this year.