Ford readying bonuses for entire workforce
Ford is making significant strides to turn its North American operations around. In 2006, it was able to cut almost 34,000 workers from its payroll after one round of buyouts and is looking to cut even more of its workforce this year through another payoff program that's being offered to 54,000 UAW-represented workers.While it's mortgaged everything in its arsenal to keep afloat through the tough times, FoMoCo is planning to hand out bonuses this year, as it did last March.
According to the Freep, the bonus plan is sitting on the table in front of Ford's Board of Directors, awaiting approval and it will likely cover some 23,700 salaried and 64,000 hourly workers in North America. Most salaried employees walked home with somewhere between $300 and $800 last year, with higher-ups paid "several thousand dollars to $15,000 or more."
While we understand that keeping moral high in these troubling times is important, with Ford posting a net loss of $2.7 billion last year, it seems that the major "bonus" for workers is that they are still employed at the Blue Oval.
[Sources: Detroit Free Press, Reuters]
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Reader Comments (Page 1 of 2)
falloutagain 4:31PM (2/20/2008)
keeps the economy going.
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tanooki2003 4:33PM (2/20/2008)
Nobody needs bonuses at Ford because they all did such a sloppy job with sticking the end users with boring garbage that nobody really wants unless it was given to them. On top of that not really taking immediate steps to rectify the large number of pissed off people who like the Euro & Austrailian designed Ford cars & trucks and are disgusted with the current American offerings. Granted there are some actions being taken, however we need to see MORE action you guys! No more sitting around talking, speculating, and wishful thinking.
The only thing Ford did right was make their vehicles more reliable than the other domestic companies.
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HoochieMama 10:16PM (2/20/2008)
Yes, Ford is still doing poorly, but many strides have been made. Further, you must reward the talent...if you don't, you could very well lose them.
They need to turn the business around, but losing top talent would be devastating in the long run. There's a balance that must be maintained by management.
TBlueMax 4:35PM (2/20/2008)
Yes, a cash bonus would likely improve employee morale but does little for morals or ethics.
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rar 5:00PM (2/20/2008)
tanooki2003 , they also passed Toyota. http://www.caranddriver.com/news/car_news/ford_passes_toyota_in_j_d_power_initial_quality_rankings_car_news
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simianspeedster 5:44PM (2/20/2008)
Haha! You're kidding, right? The link you provided represents a fluffy PR article that spins and skews the stats.
Yes, Ford claims 5 segment leaders in initial quality to Toyota's 4 this year, but:
1) Initial quality is one thing; long term quality is another. Ford still lags Toyota significantly in J.D. Powers' long term quality studies.
2) One of Ford's claimed segment leaders is a Mazda through and through (MX-5 Miata) and 2 of the remaining 4 segment leaders are heavily based on Mazdas (Milan and Lincoln MKZ). How can Ford claim credit for the Miata when they only own 1/3 of the company? At best, Ford has 4 segment leaders, tying Toyota, and 2 of them are basically Mazdas anyhow!
3) Look closely at the "problems per 100 vehicles" scores by competing brand and segment:
Luxury brands: Lexus = 94, Lincoln = 100, Volvo = 129. Winner = Toyota.
Mainstream brands: Toyota = 112, Ford = 120, Mazda = 163 (second to last!!!). Winner = Toyota.
Alternative/niche brands: Scion = 123, Mercury = 113. Winner = Ford (with kudos to Mercury).
Funny how Ford takes credit for the Miata, but there's no mention of Mazda coming in 2nd to last overall in the study. I suppose Ford "owns" Mazda when it's statistically convenient, but they don't when it's not, eh?
No bonuses are deserved at Ford until they start turning the ship around.
-SimianSpeedster
HoochieMama 10:12PM (2/20/2008)
"How can Ford claim credit for the Miata when they only own 1/3 of the company? "
1/3 = controlling interest with regards to Japanese co. Mazda is constantly prodding Ford to invest more, but there's little point. They share platforms, vehicle components, etc. They can claim credit. Get your facts straight.
h8rain 5:13PM (2/20/2008)
"...with higher-ups paid "several thousand dollars to $15,000 or more."
From a business stand point that makes absolutely no sense if your company posted a loss....ESPECIALLY a loss of 2.7 billions dollars. I can't even see we they would give out the "$300 and $800" bonuses to hourly. Bonus are "generally" to reward employees because the company did above and beyond their expectations.
Ok Timmy, you got 2 F's on your report card, so here is a Playstation 3.
Just.....doesn't.......make......sense......
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Polly Prissy Pants 6:13PM (2/20/2008)
You're thinking of a bonus in the strict classical sense. In reality, at the executive level actual job performance doesn't mean that much because you can always explain away why your group or org didn't get the results it was goaled on. And if you did make goal then hooray, it was all because of you! An exec is just a private sector politician so as long as you understand that then all this bs they spew makes a lot more sense.
Mi key 5:58PM (2/20/2008)
As to the Hourly getting Bonus's that makes sense but the Exec's getting bonuses is yet again rewarding bad behavior and/or management.
Hourly deserve it, as they did what was required of them by the company to produce whatever was green lighted but the Executive have done nothing I can see help make this a profitable company. FORD seems to be looking to get rid of Mercury Brand and had to sell other Automotive Brand Business to make FORD look better on paper.
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GTX141 6:42PM (2/20/2008)
When I was in the service, I was told that management is responsible when things go wrong.
Losing billions of $$ is not an example of things going right. So why are they getting higher bonuses, or bonuses at all? Simply makes no sense, no matter how you spin it.
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nardvark 6:59PM (2/20/2008)
The bonuses are largely designed to keep talented employees from jumping ship to other auto companies. I think this is sometimes referred to as "brain-drain." It's a problem at companies who are in the red, because no one wants to hang around long enough to be associated with the failure. However, a time of crisis is exactly when you need your best employees. In the long run, it's probably money well spent.
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HoochieMama 7:44PM (2/21/2008)
"How can Ford claim credit for the Miata when they only own 1/3 of the company?"
Here's your own words.
Yes, you did claim Ford technically owns 1/3 of Mazda. Good for you....but you proceeded to use it as a qualifier for why they shouldn't be citing the Mazda Miata as a segment leader in their brand portfolio. It is, in fact, exactly why they should be citing it.
"If manufacturers can claim ownership by virtue of component sharing, I guess Ford will have to start counting Tata in its ratings once they buy Jaguar and Chrysler can still claim Mercedes-Benz (or the other way around)."
This is foolishness. Ford claims ownership because they own them. Further, Tata never "owned" Ford. WTF are you talking about. Now you venture into broken logic due to your losing argument.
"In any event, your "parts sharing" logic is flawed."
No. They share components and vehicle platforms by virtue of Ford's ownership, not vice versa. The only flaws I can see are in your half-ass argument.
"In any event, if Ford wants credit for Mazda, then they also get saddled with the 2nd lowest performing brand in the study. Congrats..."
It's possible to have bright spots in a lineup and draw attention to said vehicles...even in the midst of an overall low ranking. You'd have to be a complete jackass to not understand the logic.
simianspeedster 1:13AM (2/21/2008)
Get your own facts straight!
I said Ford owns 1/3 of Mazda -- what part of that is not true?
In any event, your "parts sharing" logic is flawed. If manufacturers can claim ownership by virtue of component sharing, I guess Ford will have to start counting Tata in its ratings once they buy Jaguar and Chrysler can still claim Mercedes-Benz (or the other way around).
In any event, if Ford wants credit for Mazda, then they also get saddled with the 2nd lowest performing brand in the study. Congrats...
ionosphere 10:33PM (2/20/2008)
Giving bonuses while firing others at the same time. Brilliant!!!! Those fired employees will be so happy that those who got to keep their jobs also got bonuses to boot, while they just got the boot. How about giving the CEO a hugh bonus too, for a job well done.
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That One Person 11:00PM (2/20/2008)
I bet most of those people who were "fired" left on their own accord. Just because a person takes a buyout doesn't mean they were fired. And for those who work(ed) in plants that were closed or are scheduled to close are offered the chance to work in another plant or somewhere else.
My father was offered a buyout but refused because of the lack of jobs here in Michigan. He could have used that money to possibly put a down payment on a new house somewhere else but the majority of that money would have to go into fixing up our current home and go towards trying to sell this place...it didn't make financial sense.
I say screw the execs and give more money to the little guy...who most likely busts his/her butt to do their job.
patrick 12:10AM (2/21/2008)
Keeps The Economy Going? How Could You People Applaud This? Cutting 34000 Workers To Be Able To Afford Bonuses For The Rest Is Appalling. How About 34000 Workers Who Kept Their Jobs And Working Is What Keeps The Economy Going.
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Landy 12:58AM (2/21/2008)
By the way:
Excluded from this bonus is the European workforce - as they were last year! Ford of Europe's workforce makes the money - Ford US workforce gets the bonus! But everybody at FoE got a 3 little Ford-pins instead - maybe to be sold on ebay...
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hitek3 10:30AM (2/21/2008)
Suspicion confirmed: none of you know anything. It's always fun to see what you geniuses come up with on how to run a company etc.
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GhostDoggy 5:39AM (2/21/2008)
I think the base bonus compensation at my workplace for salaried employees is 10% of salary base. This means its an automatic $3K absolute minimum, and the percentage goes up from there.
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