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Ford to Pay Out Record Profit Sharing Bonus

Average hourly worker to receive $8,300.

by on Jan.30, 2013

A worker at the Ford plant in Wayne, Michigan assembling a new Focus sedan.

Ford Motor Co.’s U.S. workers will share in the company’s strong 2012 performance, each union employee receiving, on average, an $8.300 profit-sharing bonus.

That’s the single-largest profit-sharing payout from any domestic automaker since the United Auto Workers Union introduced the program as a trade-out for concessions during 1983 contract negotiations.

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The profit-sharing program is tied to Ford’s earnings in North America where it reported a pre-tax profit of $8.3 billion for 2012. The maker meanwhile reported it earned $1.7 billion before taxes during the fourth quarter, Ford’s best figure for the three-month period in more than a decade. However, net income for all of 2012 declined $307 million, excluding special charges, to $5.7 billion.

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Ford Hands Raises, Bonuses to White-Collar Workers

First raise since 2010.

by on Jan.19, 2012

Ford CEO Alan Mulally: time to share the wealth.

About 20,000 Ford workers will have reason to celebrate after receiving their first combination of merit raises and bonuses since 2008.

The announcement – first revealed in a letter to workers last week – reflects the maker’s increasing fortunes, Ford reporting $6.6 billion in earnings for the first three quarters and expecting to add about $1.7 billion more to that tally, according to analysts’ estimates, when it reports earnings for the last quarter later this month.

The raises, which will take effect on April 1 should average about 2.7% and apply to 20,000 salaried employees – most of them in the U.S. and Canada.

Workers were given performance bonuses last year, and merit raises in 2010.  The last time they received both bonuses and pay hikes was in 2008.

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White-collar workers have normally received substantial financial packages in the Detroit industry but pay and benefits were sharply curtailed during the years leading up to the Great Recessions, when both General Motors and Ford were forced into bankruptcy.  Ford was able to avoid a Chapter 11 filing by taking on about $30 billion in debt – which it is now rushing to pay down.

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GM To Give Hourly Workers $4,000 Bonuses

Falls short of Ford’s profit-sharing package.

by on Feb.14, 2011

GM CEO Akerson sending a kiss - and more than $4,000 in cash - to hourly workers.

General Motors CEO Dan Akerson has a big Valentine’s Day card coming in the mail for 45,000 workers.

Though they’ll still have to wait a bit for delivery, they can anticipate a profit-sharing bonus of at least $4,000 apiece, the executive announced today.  That’s more than double the previous record $1,775 profit-sharing payment workers received from GM – and that was back in 1999.

But the maker’s bonus still falls short of the $5,000 Ford Motor Co.’s hourly workers will be getting.  Ford decided to pay out significantly more than it was required to, in fact, under its agreement with the United Auto Workers Union.

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That reflects concerns Detroit automakers have about how workers will respond to the domestic industry’s fast-improvement health.  UAW members granted billions of dollars in concessions, first as part of their 2007 contracts with the U.S. Big Three, and then again to help the makers hobble through the economic downturn that saw auto sales plunge to their lowest levels in decades.

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Detroit Rewards Salaried Workers With Big Bonuses

But could that touch off trouble with hourly employees?

by on Feb.14, 2011

Workers on and off Detroit's assembly lines will be seeing bonuses this year.

Chrysler Group and General Motors are using bonuses to reward salaried employees who survived the long, bitter recession.

Almost 11,000 salaried workers at Chrysler will receive an average bonus of $10,000, according to various reports.  But the planned handout may touch off a rift in the company’s ranks, according to employees familiar with the plans, who indicate many employees believe the rewards are inherently unfair and biased against blue-collar workers.

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Meanwhile, GM’s 26,000 white-collar workers will also see performance bonuses this year, the automaker has acknowledged. While GM hasn’t released its final financial report for 2010, the maker also appears to pay its 53,000 U.S. unionized hourly employees profit-sharing checks amounting to $3,000.

Ford has been relatively cautious on salaried pay, limiting raises but promising merit bonuses equal to 10% of base pay to select salaried employees.

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