Ford announced today that it will be cracking open the coffers to pay out a bonus to every single one of its salaried and hourly workers in the U.S. and Canada, a number that now stands between 120,000 and 128,000 people. According to Automotive News, the bonuses will range from $300 to $800 for nonmanagers, while management will get a little more (isn't that always the way?). Ford has stated the bonuses are meant to boost morale and recognize the hard work of the entire Ford family to reduce costs, improve quality and pair down the ranks.
The one question that has to be asked is where or not Ford can really afford this right now. If we were to assume the least expensive scenario of the automaker paying 120,000 workers a $300 bonus, the tally would come to $36 million. That's the least expensive scenario, which is a gross underestimate since there could be up to 128,000 eligible for the bonuses that range up to $800 and even more for managers. Morale is certainly important, don't get us wrong, but perhaps such a large payout during these tough times will actually shake the morale of those workers left who believe their leaders aren't making the right decisions. It's something to think about.
[Source: Automotive News]
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Reader Comments (Page 1 of 2)
Mike @ Mar 8th 2007 5:57PM
I would think it would boost moral. To me it shows one that Ford appreciates its employees, secondly that Ford has confidence in its self that it will be able to turn around. Weather or not it can remains to be seen, but heres to hoping so.
roberto @ Mar 8th 2007 6:17PM
Good for Ford !! This shows some confidence on the future and respect and appreciation for his employees even in these hard times.I hope with the help of some oh his european products they can turn things around and go back to making profits on their vehicles.
Brian @ Mar 8th 2007 6:18PM
It's "pare" down their ranks, not "pair". J.H.C, the editing and grammar on this site has gone to complete shit. Where did you guys learn to write?
Aaron @ Mar 8th 2007 6:18PM
the fact that they aren't spending 50k a week shuttling mullet man fields around on the ford plane ave them a few bucks to spread around..
TheSwener @ Mar 8th 2007 6:25PM
I think they should give out stock instead. That would be even better motivation...
nate @ Mar 8th 2007 6:28PM
Why are your captions always condescending to UAW employees? Do you not think about things you would like to purchase with your bonus? Autoblog does not cast transplant assembly line employees in a negative light. Please show some respect.
Rick Lyon @ Mar 8th 2007 6:28PM
Are Ford workers really that dumb to think they can afford a 50" Plasma with a $800 bonus?
emor8t @ Mar 8th 2007 6:42PM
This makes no sense....
Ford:
"So guys, we need you to work harder, quicker, and build a better product, so we can stay in business, alright?"
UAW Worker:
" *muble* well I guess it's either this or get fired"
Ford:
"You guys catch on quick, but for good measure, we are laying off 10,000 of you."
....sometime later....
Ford:
"Ha ha, remember all that hard work we had you do, we were just kidding, haha. Here's some money."
UAW Workers:
"....what the hell just happened... I think we got hosed."
Julius @ Mar 8th 2007 6:47PM
People who were recently laid off are eligible for the bonuses as well.
Big Rocket @ Mar 8th 2007 6:52PM
#4 (Aaron): "the fact that they aren't spending 50k a week shuttling mullet man fields around on the ford plane ave them a few bucks to spread around.."
Too bad Ford blew those savings away by giving the same perk right back to Alan Mulally. And his family. And their friends.
http://www.autoblog.com/2007/03/01/alan-mulally-making-friends-fast-receives-a-raise
ThriftyTechie @ Mar 8th 2007 7:07PM
$40 million is chump change. It will not make or break Ford. How much did Ford lose last year again? What's another 40 or 50 million then?
fizzandpop @ Mar 8th 2007 7:22PM
Ford make/lose $40million a day just in currency fluctuations. Drop in the old bucket. Sounds like Mullaly (sic) has taken a leaf out of Bush's playbook (remember those $300 tax refunds we all spent in Mexico or on the black market).
BOB @ Mar 8th 2007 7:48PM
#6 and #7 are correct -- I dont like the UAW, but you lover yourself and the website to make fun of people who are in danger of losing their jobs, especially with the ridicolous plasma comment. (Of course, the old UAW guys include some lazy drunken jerks who make more than auto writers.)
The $300 or so bonuses are smart business. Even if you dont see the value of pumping up morale so cheaply, contract negotiations are going to arise, and Ford's ONLY hope is to get the currect employees to override the retirees on concessions. (A little bit like sending a girl flowers, in the hopes of boffing her one more time before you dump her.
So, all in all, not really the thoughful article I expect under John's name.
Bryan @ Mar 8th 2007 8:38PM
Hey Rick Lyon..are you really that dumb to think a Ford worker drew the cartoon bubble with that caption inside?
Barney @ Mar 8th 2007 9:35PM
It will probably do more for Ford then the same amount offered as a rebate to customers. Rebates to customers indicate things aren't doing well, where as the bonus shows the reverse.
Petey @ Mar 8th 2007 10:39PM
The low cost scenario is less than what Mullally makes in a year.
BEOHBE @ Mar 8th 2007 11:11PM
Why is everyone who visits this site such a fuckin' idiot?
paul34 @ Mar 8th 2007 11:37PM
50" plasma? Exactly what an uninformed buyer would buy!
DLP is where its at ;-)
Kool, Could be due for NA @ Mar 9th 2007 7:53AM
I am an automotive engineer working for a non-Ford company (or group). I feel sad to see that caption and the worker: FoMoCo is in a hot seat right now, and to make fun of the situation, as an industry person, actually based in Asia, is a sad sight. The industry is really undervalued, and the current situation for Big Three (formerly) somewhat breaks my heart. I love Autoblog and its contents, but I have to say, the caption and the photo is tasteless.
These people at the assembly line, like us in R&D, strive to make a living. We don't work for hip and rich IT companies like Google, nor get to drive BMWs and what have you(of course, unless you work for BMW AG), but we love what we do, and I am sure that FoMoCo people are, too. Who with the sane mind would think of buying a Plasma when their jobs are on the line? (yeah, I am sure there are some who may, may be the Toyota guys down in the South).
In any case, I cannot for the life of me find this photo and caption funny.
Kool, Could be due for NA @ Mar 9th 2007 7:58AM
BTW, I work for the Renault-Nissan alliance.