Cummins to restore pay, hours cut due to pandemic

The exterior of the Cummins Columbus Engine Plant in Columbus is shown. Republic file photo

By Andy East

Cummins Inc. has said it will restore at the end of this month the salaries and hours of U.S. employees that were temporarily cut during the early weeks of the pandemic.

In April, Cummins Chairman and CEO Tom Linebarger took a 50% reduction in salary, director compensation was reduced 25% and all other employees in the United States saw a 10% to 25% drop in salaries and reduced hours, the company said then.

The reductions were intended to be a temporary measure due to lower demand and customer shutdowns in several countries related to the COVID-19 pandemic, the company said.

Company spokesman Jon Mills was unable to say precisely how many U.S. employees the move would impact, but said the Columbus-based company employs more than 25,000 employees in the United States, including 10,000 in Indiana.

“Affected non-exempt employees will return to full-time hours and pay on Monday, Sept. 28, 2020, and exempt employees on Oct. 1, 2020,” he said.

For more on this story, see Sunday’s Republic