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Post by TonyV on Dec 15, 2009 2:55:11 GMT -5
Ford to restore perks, raises
Salaried workers will get 401(k) match, tuition aid, merit pay
Bryce G. Hoffman / The Detroit News
Ford Motor Co. will restore some benefits that its U.S. salaried employees lost last year and resume merit raises -- the latest sign that its recovery is gaining traction.
"Our plan is working," said Ford Americas President Mark Fields in a note to white-collar workers Thursday.
The note said Ford would resume matching employee 401(k) contributions effective Jan. 1. That program, through which Ford kicks in 60 cents for every dollar an employee contributes to a retirement account up to 5 percent of their base salary, had been suspended in January.
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Ford also said it will begin offering tuition assistance to salaried workers again on March 1. And the automaker said it would resume merit pay increases April 1.
In 2008, Ford delayed merit pay increases until October and suspended them entirely this year after losing a record $14.6 billion.
"Those benefits were suspended due to difficult business conditions in the United States," said Ford spokeswoman Marcey Evans.
"We had committed to employees to reinstate them when business conditions allowed, and they have improved to the point that we can restore these benefits."
Last month, Ford surprised Wall Street with a $1 billion profit.
It was the second quarterly profit in a row for Ford, the only U.S. automaker that did not accept a government bailout and the only one to avoid bankruptcy in what has been one of the worst crises to hit the automobile industry ever.
The Dearborn automaker still expects to post a loss for the full year.
It has promised a return to profitability in 2011.
Evans said the company will not pay bonuses for 2009.
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Post by TonyV on Dec 15, 2009 3:04:38 GMT -5
Ford Motor Co. memo on reinstating raises
Here is the memo sent on Thursday to U.S. salaried employees by Mark Fields, president of the Americas.
Subject: 2010 Total Compensation Announcement
Today, as included in our annual compensation and benefits bulletin, I am pleased to announce we are reinstating two important benefits for eligible salaried employees and planning merit increases in 2010 in the U.S.
Effective Jan. 1, 2010, Ford is reinstating the 401(k) matching program at 60 percent of employee contribution up to the first 5 percent of base salary contributed – the same matching rate prior to our most recent program suspension.
Effective March 1, 2010, Salaried Tuition Assistance Plan (STAP) will be reinstated with revised program guidelines. This assistance will be provided to employees for classes beginning on or after March 1.
Funding for 2010 merit increases has been approved for salaried employees in the U.S. and will be planned for an April 1, 2010, effective date. As in past years, employees will be notified about the amount of their individual merit increase prior to their payment.
We understand from your feedback that these compensation and benefits programs are valuable to you and your families, and we are delivering on our promise to improve the competitiveness of our total compensation as business conditions allow.
Further details about these and other compensation and benefits-related changes can be found by accessing the 2010 Salaried Total Compensation Announcement, now available on HR ONLINE. I encourage you to review the available information. Our Employee Benefits Office will provide additional information during the first quarter of next year.
While we all should be proud of the progress on our transformation plan that made possible the reinstatement of these programs, we still need to keep delivering on our plans for a profitable and sustainable business. In this challenging business environment, it is more important than ever that we remain focused every day on delivering all the key pillars of our One Ford Plan:
• Aggressively restructure to operate profitably at the current demand and changing model mix
• Accelerate development of new products our customers want and value
• Finance our plan and improve the balance sheet
• Work together effectively as one team, leveraging our global assets
Thank you for all of your tremendous efforts. Clearly, our One Ford transformation is not complete, but our plan is working. By continuing to work together and staying focused, we can truly deliver a future that includes profitable growth for all.
- Mark
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Post by ScottR@KTP on Dec 15, 2009 13:05:06 GMT -5
"our plan is working"...they wanted us to give shit back, but they admit their plan is working and they are giving raises and benefits to salary. What a joke!
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Post by Calvin@KTP on Dec 15, 2009 17:13:31 GMT -5
I want our concessions back next contract.
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Post by tonyp on Dec 15, 2009 20:03:08 GMT -5
I will continue to vote no until we get back xmas bonuses yearly raises and a $3000 signing bonus. It's BS...We all bust our asses so we should all reap the benefits!!!
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Post by hotcarl on Dec 16, 2009 0:20:29 GMT -5
I want our concessions back next contract. ...and then some. |
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Post by hotcarl on Dec 16, 2009 0:26:20 GMT -5
Sad thing is; this is not something that Ford decided over night to do. I can't help thinking that their plan all together was to get the union to give more major concessions and then several months later reward themselves. I seriously hope that the IUAW and all of the locals feel the way that I do and remember that the day that we have been "living to fight for" is just around the corner.
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Post by ktpelec on Dec 16, 2009 10:23:30 GMT -5
A childhood friend of mines mother works for Ford in Detroit, I'm glad shes getting a much needed raise. Since Ford slashed 20% of the salary workforce her workload has been almost unbearable. It's a good sign, we will return to the bargaining table very soon.
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Post by hotcarl on Dec 16, 2009 11:15:24 GMT -5
She can quit. Nobody is forcing her to work there. With Detroit's high unemployment levels, there are lots of people who would gladly do her job for a lot less money. Isn't that what we always hear?
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Post by ktpelec on Dec 16, 2009 11:59:47 GMT -5
Yes hotcarl, thats true any of us could just quit and go somewhere else to work. My point is that just because a person is a salary worker doesn't mean they are management, this particular woman is in a clerical position and gets up to go to work every day just like most of us that work here in the assembly plant. She is a working American, no different from you or I, there is no reason to be jealous or hate her because she got a raise.
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Post by ScottR@KTP on Dec 16, 2009 12:34:03 GMT -5
Our ETAP was "suspended"...why do we need to go back to the bargaining table to get our education money reinstated? This should be done immediately.
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Post by bo862 on Dec 16, 2009 16:58:21 GMT -5
So are we. We volunteered to help this company out, and they turn around and try to trick us to give up more concessions then turn and give some of those benefits to someone else. The anger isn’t directed at any working individuals, its directed at a corporate entity that is squeezing hard working Americans!
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Post by hotcarl on Dec 16, 2009 19:18:21 GMT -5
ktpelec, My comments were meant to be "tongue in cheek" and were intended to point out the ignorance that is directed at us when we try to maintain or improve our pay and benefits.
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