General Motors (NYSE: GM) and Ford Motor (NYSE: F) are bringing back merit raises for salaried employees of both companies even as both domestic automakers cut thousands of staff and face other losses in multiple areas of restructuring.

After all, the two largest American auto companies must remain competitive in terms of compensation packages to retain the talent needed to operate the businesses, right? After skipping merit raises in 2007, these pay raises will be back in effect in 2008. Ford said that it was "financially feasible" to reinstate the merit raises in the midst of its "Way Forward" company-wide restructuring.

A Ford spokesperson said giving merit raises to those salaried employees as a way to show appreciation for those folks going "the extra mile" and for doing more than usual in 2007 was the correct course of action. Sorry to break it to you Ford, but you're not the first company to ask employees to go without a pay increase due to company losses and restructuring.

Ford's expected average pay increase for salaried employees in 2008 will be 2.7%. GM did not report what the average pay raise it would give salaried employees in 2008 after also not giving raises in 2007. Let's hope both automakers can make inroads to becoming more consistently profitable next year, although Ford has said profit won't come until sometime in 2009.