Momentive restores some pay, but NLRB seeks more

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in Employment Law,Human Resources,Leaders & Managers,Management Training

Colonie-based Momentive Performance Materials has rescinded temporary pay cuts it instituted last spring, restoring salaries for all exempt employees other than senior managers.

Meanwhile, hourly employees recently got encouraging news from the National Labor Relations Board (NLRB), which in late January ruled that the company had violated the terms of its collective-bargaining agreement when it slashed nonexempt pay between 25% and 40% per worker.

At the depths of the recession, the company slashed salaries by 7.5%, with much steeper cuts in hourly wages. At the time, the company termed the hourly cuts permanent and necessary to bring wages in line with industry standards.

The hourly wage cuts sparked an unfair labor practices grievance from the IUE-CWA, the union that represents Momentive’s blue-collar employees. The NLRB in January upheld the grievance.

Momentive makes industrial adhesives, resins and sealants. The company was formed when General Electric sold its silicone plants to Apollo Management.

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