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Cummins Announces Pay Cuts, Hours Reductions

A Cummins Inc. logo is pictured outside one of the company’s manufacturing plants. Press photo from Cummins.com

Cummins Inc. is cutting salaries at all levels of the workforce as the company weathers the COVID-19 pandemic.

On Friday, the company announced that Tom Linebarger, Cummins Inc. chairman and CEO, is taking a 50% pay cut while directors are taking a 25% pay cut. All other employees are seeing their pay reduced between 10% and 25% as well as a reduction in working hours.

The actions are prompted by COVID-19’s impact on global markets, lower demand and customer shutdowns in several countries.

“The impact from the pandemic on the global economy has been sudden and is growing, and it is imperative for us to respond quickly to maintain our strong financial position,” Linebarger said in a news release.

The company will take similar actions outside the United States based on local regulations and collective bargaining obligations. These reductions in pay are intended to be a temporary measure; the company will continue to monitor business conditions closely and reassess the program at the end of the second quarter.

“These are difficult but necessary actions and I know they will have a real impact on the lives of our employees and their families,” added Linebarger. “I appreciate their understanding and support as we work through these challenging times together. I want to thank our employees for their continued commitment to ensuring our customers receive the products and service they need to provide essential support to the global economy.”

In other news, Cummins’ NanoNet and NanoForce Media technology divisions is partnering with DuPont to make N95 masks. Cummins uses DuPont’s Hybrid Membrane Technology in air, fuel and lube filtration products used in heavy-duty diesel engines to prevent long-term engine wear. The technology can also be used in N95 respirator masks.

“We thank our partner Cummins for transitioning the use of its production line to help address the global shortage of N95 mask materials, and we thank the experts at the University of Minnesota for their leadership in testing and designing several mask options for the benefit of many healthcare systems,” said HP Nanda, DuPont Water Solutions global vice president and general manager.

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