Ford announces bonuses, raises for salaried workers while GM and Chrysler wait
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Ford plans to offer these 20,000 salaried workers a raise that will average 2.7%, with the actual amount being based on the individual performance of each worker in 2011. There has been less information as to exactly how much of a bonus the salaried workers in the US and Canada can expect but the Motor Company has stated that the raises are effective April 1st while the bonuses are expected to be paid in March. The last time Ford Motor Company offered both pay increases and raises in the same year was 2008 – the same year that the American automotive industry began its violent downward spiral that lead to the bankruptcy of GM and the sale of the Chrysler Group to Fiat SpA.
Due to the collapse of the industry in 2009, Ford did not offer bonuses or raises but in 2010, the company did give salaried workers merit-based raises while in 2011, Ford issued bonuses to these salaried employees.
As is generally the case, a major financial announcement by one of the American “Big 3” has caused everyone to look to the other two groups to see if they offer raises and/or bonuses of their own but thus far, both General Motors and the Chrysler Group are holding off on any announcements of this type. General Motors plans to make their decision on bonuses and raises after they fully compile and assess their 2011 financial statements. The Chrysler Group intends to announce their 4th quarter results for 2011 on February 1st – at which point the company will take a look at offering bonuses or raises.
Considering that General Motors and Chrysler both had great years in 2011, workers are likely expecting to get their hands on a bonus, a raise or both. GM and Chrysler have both stated that their decisions will be based on internal findings and not the moves of Ford Motor Company, but there would certainly be an uproar if Ford hands out both raises and bonuses and the other two American automakers don’t counter…even if only with a smaller amount.
TorqueNews will continue covering the financial status of the Big 3 American automakers, bringing you any news as it becomes available.