General Motors Corp has changed itsmethod of disbursing merit raises for salaried employees and is
reducing the size of the merit raise pool to 3.5 pct of the
total amount available for salaries from 5.5 pct last year, a
company spokesman said.
    He said GM will no longer include merit raises in the
calculation of base pay but will make them simply lump-sum
payments.  As a result, the merit raises will not be included
in the calculation of pensions and other benefits.  The change
affects about 109,000 salaried workers in the U.S. and Canada.
                                       
    GM last year eliminated cost of living increases for
salaried workers, making pay increases based on merit alone. As
a result of the new action, GM has effectively frozen the base
pay rates of salaried employees.
    The spokesman said GM is making the change to remain
cost-competitive with other U.S. automakers.
    GM is currently in thje midst of a program to cut
employment of salaried workers by 25 pct.
 Reuter
