COLUMBUS, Ind. — Cummins Inc. will continue pay reductions instituted in April due to the COVID-19 pandemic through the third quarter of 2020, company spokesman Jon Mills confirmed today.
In April, Cummins reduced the pay and hours of its employees in the United States due to lower demand and customer shutdowns in several countries related to the COVID-19 pandemic. The reductions, which started in mid-April, were intended to be a temporary measure, and the company would monitor business conditions and reassess the reductions at the end of June, the company said in an announcement then.
In April, the company said Cummins Chairman and CEO Tom Linebarger took a 50% reduction in salary, director compensation will be reduced 25% and all other employees in the United States will see a 10% to 25% drop in salaries and reduced hours.
Cummins took similar actions outside the United States based on local regulations and collective bargaining obligations, the company said.
The company, which is based in Columbus, employs more than 60,000 globally, company officials said.
For more on this story, see Tuesday’s Republic.
