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Post by TonyV on Oct 11, 2011 0:18:08 GMT -5
Is there a cap on the Profit Sharing? A - There is a cap of $12,000 each member can put into the "bucket" of money to be distributed. For us to reach that cap, Ford would have to make $12 billion in profit for that particular year The more hours that you work the more profit sharing money you will make. Your check will be based on the number of hours that you work for the profit sharing year. Profit sharing is capped at 1850 hours - Paid twice a year? Now - with metrics yet not defined - Ford takes their share (Anything after 1850 hours) and the IUAW takes their share (VEBA 10%) - is there anything left for the employee??? Answer - no one can answer this because the metrics are not yet lined out. Also, the 10% can be implemented in different locations in the formula for differing results. Was anyone at the bargaining table looking out for the active hourly on this one??!!! Just trust us - the IUAW says.
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Post by ScottR@KTP on Oct 11, 2011 6:32:51 GMT -5
I trust them!
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Post by kessinger on Oct 11, 2011 10:13:34 GMT -5
Ok here is how it works.
Every employee that works 1850 hours will constitute a 100% contribution into the profit sharing plan. If you work fewer hour, it goes by a percentage so if you work 925 hours it would contribute 50% of the money.
Then ford contributes 1 dollar per million profit for every qualifying person so 10 billion in proift would be $10,000 for each person, or the percentage of it based on their hours.
So that amount is the total of the profit sharing fund. 10% of that goes to VEBA (if the courts say its legal to do so)
Then you take the total of hours of every employee in the company and divide the profit sharing fund by the total hours and that will give you a dollar amount per hour worked.
So lets say that dollar amout is $4 per hour worked. Then someone who worked 1850 hours woudl get $7400 dollars someone who worked 2600 hours would get $10,400 and someone who worked 1000 hours would get $4000.
This is where ours is different than GM's my understanding is they all get the exact same amount.
The other thing that makes profit sharing an improvement is that they can not take special exemptions or payments out. If you remember in the past things like interest payments and CEO bonus' came out fo our profit sharing number prior to it being our profit sharing number and they could exclude profits from things like selling off vistion.
I haven't commented personaly on most of this contract. But, the profit sharing does seem to be a win.
You are not capped at $12,000, the contribution is. And its $12,000 per year not life of the contract. Though $12,000 would be hard to reach.
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Post by pmooret on Oct 11, 2011 20:32:24 GMT -5
We got an improved profit sharing formula but then they turn around and take 10% our for VEBA so actually your back to square one and the only thing that we really got was the runaround.
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