• Mar 6th 2008 at 8:28AM
  • 14
Barely over a year ago, Ford paid out cash bonuses to its employees and recently hinted that they'd do the same this year. Today, an email sent to Ford employees confirmed the bonuses, which will be $1,000 for hourly UAW workers, with significantly larger bonuses based on pay grade going to salaried employees. Before Alan Mulally came to Dearborn, workers at Ford would not have been eligible for any extra income, as the old bonus plan was based on a profit-sharing system. Profit is not something that Ford has seen in a while, losing some $2.7 billion last year.

According to Mulally, the number three automaker in the U.S. "made significant progress on our plan transform Ford Motor Co. into a lean global enterprise poised to become profitable again in 2009." To recognize the efforts of each employee towards the larger goal of regaining profitability, Ford workers should expect their bonuses on March 13.

Not all news was good for Blue Oval employees, though, as salaried workers were informed that their merit pay increases would be delayed from the first of April to the first of June due to the poor overall economy. Considering the state in which Ford is currently operating, we wouldn't expect too many hurt feelings by the slight delay.

[Source: Detroit News]

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    • 1 Second Ago
      • 7 Years Ago
      Assuming most merit raises are 3-4%, Ford is saving money giving the $1000 and not giving raises.

      It's just a big shell game.
      • 7 Years Ago
      First Ford pay employees to leave...now they are paying them to stay??? Ford NA keeps getting weirder by the day.

      If they want to sell cars...have Ford of Europe come over and show the Monkeys in Detroit how it is done.
        • 7 Years Ago
        Just by the way: The European Ford workers will be excluded from the bonus payment - as they were last year! Maybe they did not mess up their business enough to get it??
          • 7 Years Ago
          Nice...the business that actually makes desirable cars won't get the bonus. I bet Oz won't get it wither.
      • 7 Years Ago
      It's not stupid - it's smart.
      Your ignorance is glaring.

      We were given objectives - cut costs, keep production rolling, focus on new products - we met them. We earned the bonuses by busting our butts with less people and less money for projects.

      Keep in mind that this company is enormous - over 200,000 employees. What we do today doesn't usually show up for 2+ years, if not longer. Sometimes 5 years.

      $1,000 isn't much, considering what we have given up over these lean years.

      Also keep in mind that the cost savings we have achieved were large enough that we can afford to spend some of it to keep the employees motivated to work harder.

      And - the $2.7 Billion includes a lot of write-downs for employee buy outs and capital expenses like plant upgrades that are pulled ahead using account fun.

      I'm not saying we are perfect or even great.

      But your disdain shows your ignorance of accounting, morale, leadership, and business sense.

      Perhaps you should have paid attention in school.
        • 7 Years Ago
        Easy there tiger. Remember, you're representing your company on here, and insulting people doesn't help Ford's case any. Especially when the public is questioning this particular move in the first place.
        • 7 Years Ago
        Two thumbs to Jon. Most of the clowns that post here couldn't manage a pantry, but they all have opinions. Congratulations on the good news.
      • 7 Years Ago

      Is March 13 a Friday any chance?
      • 7 Years Ago
      March 28,2008.
      Having had a glance at the responses, I am concerned for the Ford Canadian Workers and whether they will receive a bonus. And with respect to salary workers: Is it true that Ford of Canada uses a discriminatory salary payment to its Black supervisors at its Windsor, Canada operations.
      mike naraine
      • 7 Years Ago
      Nardvark is correct. There are plenty of companies, automotive and other, willing to hire employees away from GM, Ford, Chrysler. The fact is there are lots of highly educated workers (MBA’s and engineers) within Ford that can easily find jobs elsewhere – and have been. (These people definitely don’t have the view of being just happy to have a job.) If Ford wants to keep them, they need to compensate them competitively, and in the last several years they have been falling short.

      I know many people (including myself) who left Ford for a better position, pay, and in some cases location of the country.
        • 7 Years Ago
        Tasbro is 100% right. Employees of the Big 3 are highly sought after in the workplace. Work in Detroit, and you'll see that this is absolute truth.

        While I don't necessarily agree to companies giving out bonuses in tough times, I do understand the importance of morale. Pissed off and fearful workers are much more damaging to a company than any recession.
      • 7 Years Ago
      That sounds like Ford.

      "We lost almost 3 BILLION dollars last year...lets reward our employees for that by giving them $1,000 each!".

      • 7 Years Ago
      Am i the only one that sees this kinda crap that does nothing but contribute to ford never seeing profit?

      Why does it seem that every big company here in the United States doles out bonuses and extra money to everyone when they have a crappy year? They lose 2.7 billion and then start giving away money? This kinda of behavior is stupid on ford's part, and even more stupid if they employees expect these bonuses when there is no profit for the year and while the economy is in the toliet.

      What ever happend to: If you work hard and we have a great year as a company then we all share in the profit?

      This country is becoming a nation people who all want to be winners. Nobody wants to work for their reward, and the "gimmie gimmie gimmie" attitude has been screwing this country for the past 20 years.
        • 7 Years Ago
        It keeps employees from jumping ship during a difficult period for the company. If too many talented employees leave, it makes it harder to turn the company back around. It boosts morale, and in the grand scheme of things, does not cost them that much.
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