January 30, 2012
Ford workers will receive a bonus 0
The news clearly indicates that Ford are performing very strongly financially. Ford’s profit before tax equated to $8.3 billion. The increased 2.7 % salary will be introduced on April 1st. On average staff on salaries managed to secure a 15.5 % of their salary in 2011, which is quite a high increase.
Bonuses at the top
The President of the company, CEO Alan Mullaly received a larger increase to their salaries. Executive Chairman Bill Ford the Ford Americas President were in the same boat. Alan Mulally himself received a massive $9.45 million bonus in 2010. This came on top of Mr Mulally’s $1.4 million salary. Bill Ford also receives a $1.4 million salary which went on top of his $2.7 million bonus.
Change in strategy
Just bonuses were handed out last year with no raises based upon merits. 2009 saw no raises at all, with 2010 seeing no bonuses for staff just raises based on pay.
Great 2010 performance
2010’s results saw a great performance from Ford which resulted in an average of $5,000 cheque for Ford’s UAW workers which was paid in 2011. As part of a new bonus scheme negotiated last year, Ford’s 40,600 UAW staff received bonuses of $3,252 which were entirely based upon Ford profits in North America in the first half of last year. That payment came along with a competitive bonus, an inflation protection lump sum and a signing bonus.
Workers who are paid per hour rather than a full time salary will receive a bonus based upon the company’s profits in North America within the second half of 2011.
Salary based workers have a wonderful pay packet at present which includes bonuses based on profits, cost, quality and market share.
Ford’s “Savings and Stock Investment Plans” will also be revised for an increase in payments to staff.
Ford’s profits are clearly riding high at present. Recently there was some unrest amongst staff regarding pay and hours.