Chrysler salaried workers to be paid during break

Chrysler Group LLC’s salaried workers get to breathe a sigh of relief: they won’t be forced to take a two-week unpaid furlough this summer. According to spokeswoman Shawn Morgan, they will still have a two-week break but it will be a paid vacation instead of a nearly four percent pay cut.

When Chrysler LLC was in bankruptcy, Capstone Advisory Group (which was being paid millions) proposed the furlough as a cost-saving measure, because it was seriously short of cash after paying its suppliers. but company spokesman David Elshoff said the company’s bankruptcy expenses were lower than anticipated, so the new Chrysler Group had adequate resources to cover the payroll.

“The company found savings in the process that rendered the furloughs unnecessary. It’s another reason why it’s good news to have bankruptcy in our rearview mirror.”

Unpaid vacations are becoming increasingly popular as employers try to trim costs while avoiding or minimizing layoffs.