Ford announces bonus payout for all workers
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)
d Vendrasco 10:07PM (2/20/2008)
many of us who are canadian ford workers laugh at these bonuses handed out and feel the money should be used on new product designs instead of tossing out bones to their employees. What we see coming out of Dearborn shows lack of imagination.
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Mike 5:57PM (3/08/2007)
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.
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Rick Lyon 6:28PM (3/08/2007)
Are Ford workers really that dumb to think they can afford a 50" Plasma with a $800 bonus?
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ThriftyTechie 7:07PM (3/08/2007)
$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?
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roberto 6:17PM (3/08/2007)
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.
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Brian 6:18PM (3/08/2007)
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?
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Aaron 6:18PM (3/08/2007)
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..
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TheSwener 6:25PM (3/08/2007)
I think they should give out stock instead. That would be even better motivation...
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nate 6:28PM (3/08/2007)
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.
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emor8t 6:42PM (3/08/2007)
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."
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Julius 6:47PM (3/08/2007)
People who were recently laid off are eligible for the bonuses as well.
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Big Rocket 6:52PM (3/08/2007)
#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
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fizzandpop 7:22PM (3/08/2007)
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).
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BOB 7:48PM (3/08/2007)
#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.
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Bryan 8:38PM (3/08/2007)
Hey Rick Lyon..are you really that dumb to think a Ford worker drew the cartoon bubble with that caption inside?
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Barney 9:35PM (3/08/2007)
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.
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Petey 10:39PM (3/08/2007)
The low cost scenario is less than what Mullally makes in a year.
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BEOHBE 11:11PM (3/08/2007)
Why is everyone who visits this site such a fuckin' idiot?
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paul34 11:37PM (3/08/2007)
50" plasma? Exactly what an uninformed buyer would buy!
DLP is where its at ;-)
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Snix 9:25AM (3/09/2007)
Although I dont completely agree with the timing of this, this is an excellent good will gesture to the people who've sweated out the bad news at Ford lately. This should pay off well for Mullally.
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