Shanghai (Gasgoo)- Two subsidiaries of Shanghai-based SAIC Motor—SAIC Maxus and Shanghai Huizhong Automobile Manufacturing Co.,Ltd. (SHAC)—have reportedly started adjusting salaries of employees, according to a local media outlet, which is regarded as part of measures to relieve growing financial burden due to the coronavirus epidemic.
An internal document has been quoted as revealing that SAIC Maxus would increase the ratio of merit pay in the total income, which means how much an employee can earn will more rely on his own and the company's overall performance than that of the fixed basic wage.
The adjustment indicates that staff members at SAIC Maxus will in all likelihood earn less as the coronavirus has put most of China companies at risk in terms of short-term economic benefits. It may be a tacit fact that the virus-hit uncertainty makes the public feel lukewarm on the industry's growth in the short term.
The salary adjustment varies based on employees' level of position. Within SAIC Group, staff members are positioned in different ranks corresponding to their education background, working years and professional titles. People ranked higher will face higher ratio of performance bonus, disclosed the document.
The plan has come into effect from March. Besides, other welfares such as the allowance on unused annual leave and clothing cost for employees at technical centers have been cancelled as well. The bonus previously offered as reward for perfect attendance will now be allocated in accordance with the outputs and sales.
Moreover, SHAC, one of SAIC Motor's auto parts subsidiaries, has reduced staff's pre-tax monthly income by 22.2%, the local media report revealed. The policy became effective starting from March.
