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GM ANNOUNCES COMPENSATION CHANGES

 DETROIT, Nov. 11 /PRNewswire/ -- Enhancements in General Motors' (NYSE: GM) total compensation program for 1994 will keep wages and benefits of salaried employees among the best in American industry, John F. Smith, Jr., GM's chief executive officer and president, said today.
 In a videotaped address to salaried employees, Mr. Smith praised the group for their sacrifices and contributions toward GM's 1993 goal of breaking even in North American Operations on an earnings-before- interest-and-tax basis.
 "We're not home yet, but that's a remarkable accomplishment and I want to personally thank all of you," he said. The compensation changes, Mr. Smith added, "represent more than our recognition of your continued loyalty in stressful times, they also represent our commitment to ensure that GM salaried employee wages and benefits remain among the most competitive and attractive in industry."
 Highlights of the program improvements for 1994 include:
 -- A new $1,600 flexible compensation payment for salaried
 employees, payable March 15, 1994.
 -- The opportunity to exchange $600 of the $1,600 flexible
 compensation payment for four additional days off with
 pay in 1994.
 -- A 5 percent compensation fund to provide base salary
 increases or recognition awards on June 1, 1994.
 -- New investment opportunities, including a new mutual
 fund option, in the Savings-Stock Purchase Program, and
 opportunities for more fund changes and transfers.
 These and other changes, Mr. Smith said, reflect the diversity of GM's salaried workforce and management's desire to listen to that workforce.
 "Salaried employees have been asked to make sacrifices," he said. "What we hear in surveys and focus groups is that they understand why the sacrifices are necessary, but there is still concern there may be inequities between overall salaried and hourly benefit packages.
 "These changes are a way of saying we DO hear you," he added. "They're also a way of saying we value your continued full commitment."
 The new $1,600 flexible compensation payment for salaried employees can be applied toward health care expenses, additional days off or any other personal needs, Mr. Smith said.
 "Rather than a 'one-size-fits-all' plan, we wanted to give salaried employees the personal responsibility and flexibility to make the right choices for their individual and family needs," he explained.
 As GM strives to regain its position as the industry leader, the entire workforce must remain focused on customer satisfaction, Mr. Smith said. Management's role, he added, will be to develop clear and consistent goals and signals for the rest of the organization.
 "I know credibility is still an issue, but I view these changes as a long overdue start in rebuilding the bridges," Mr. Smith said. "We want GM's salaried workforce to be the most capable, motivated, flexible and enthusiastic in the industry -- today and tomorrow. We know we can't get there unless people are confident the rewards will be in line with the contributions and the sacrifices."
 -0- 11/11/93
 /CONTACT: Thomas J. Pyden of GM News Relations, 313-556-2030/
 (GM)


CO: General Motors Corporation ST: Michigan IN: AUT SU:

ML -- DE026 -- 3271 11/11/93 13:30 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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