Chapter16 Payroll Accounting

Chapter16 is about Payroll Accounting, so I've found a news base on salary and wages.
(link:http://www.thestar.com/Business/article/600786)
Article
The title of this article is "GM workers accept wage freeze"
General Motors workers in Canada have accepted concessions that will freeze wages and increase the costs of benefits until 2012. The cost-of-living allowance will also be frozen until June 2012. Haven't said that under the extension of the current three-year contract to 2012, production workers who currently earn about $34 an hour would not get any wage increases.
General Motors employs needs big savings in labor costs as part of a restructuring plan in order to be qualify for more than $6 billion in loans from the federal and Ontario governments. The union also estimates the concessions by workers and retirees will reduce GM's costs by more than $400 million over three years. GM also admit that the labor cost savings will allow the company to remain a longer period.
The parent GM Corp in USA says it needs several billion dollars more this month from Washington to keep operating because of a continuing plunge in revenues and auto sales.

Connections
In chapter 16 Salaries are paid to office workers, teachers, supervisors and many civil servants etc. And wages are payments to workers for their labor. Basically salary and wages are the same. one thing makes the difference is the Salary is defined as a fixed sum of money paid to an employee on a regular basis over a period of time (usually one year) but instead of years, Wages are payments on an hourly, daily, or weekly basis, or by the piece. Its very rare to see workers accept this kind of situation. After all Wages and salary are benefits for workers and cost for company.

Conclusion
In conclusion this article indicates the importance of balancing the cost of labor. This article also shows us the dimly future of the global economic. Normally workers wouldnt accept wage freeze as whats happening because that's what they are working for. Yet we dont know whether GM's plan is viable and makes sense to taxpayers. Under this three-year contract to 2012, production workers who currently earn $34 an hour would not get any wage increases and a cost-of-living allowance will also be frozen until June 2012. I've saw a lot of strike about workers and labor union complain about their low wages and salary but none of that like this. Its very special to see workers give up their rights and benefits for the uncertain future. i mean after all there is still a chance GM would shut down or go to bankruptcy before their promise goes ture.