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.
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.