Seeking Alpha

It's bonus time at Ford

  • Close to 47K Ford (F) workers paid at an hourly wage will qualify for bonuses based on the automaker's performance in the U.S. last year.
  • The bonus payout will average $8.8K per worker, compared to last year's level of $8.3K.
  • Previous: Ford's Q4
  • F +1.8% premarket
Comments (25)
  • rwreeks
    , contributor
    Comments (2) | Send Message
     
    8.8K per worker? Last year 8.3K per worker??? How about a few cents for the stockholders?
    28 Jan 2014, 08:03 AM Reply Like
  • Sean Chandler
    , contributor
    Comments (664) | Send Message
     
    @rwreeks

     

    Ford has always paid their employees well and I feel that their hard work entitles them to these bonuses over the few cents to shareholders. I understand that shareholders are what makes it happen but control your greed and be happy with your dividends.
    28 Jan 2014, 08:16 AM Reply Like
  • jcirafic
    , contributor
    Comments (246) | Send Message
     
    Sean, really? 8.8k? That's excessive. Most of us get nada, 0, zilch for our hard work. I own some F and like the recently increased dividend, that much is true.
    28 Jan 2014, 08:56 AM Reply Like
  • Slick E
    , contributor
    Comments (135) | Send Message
     
    I guarantee you get paid for your hard work.

     

    It's part of their compensation package. Would you rather Ford just increase their salary by $8.8K and eliminate the bonuses? What difference would that make except guaranteeing costs would be higher when business isn't doing as well?
    28 Jan 2014, 09:07 AM Reply Like
  • jdl51
    , contributor
    Comments (252) | Send Message
     
    You should see the bonuses the front office gets, and not just at Ford but at just about every single large corporation in America. 8k is peanuts. Comes to about $170 a week.
    28 Jan 2014, 09:07 AM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    Sure, reeks! How about 50 cents! You got it! (The Dividend)
    28 Jan 2014, 07:42 PM Reply Like
  • jcirafic
    , contributor
    Comments (246) | Send Message
     
    Slick- zero bonus for me. 8.8k is beyond reasonable, period.
    28 Jan 2014, 10:12 AM Reply Like
  • Slick E
    , contributor
    Comments (135) | Send Message
     
    I didn't say you get a bonus, but you are compensated. Some positions include bonuses as part of the overall expected compensation plan, others do not.

     

    Do you think Ford just dropped this bonus on its employees when they weren't expecting it? Do you not think that the employees' base salaries are not lower than they otherwise would be with this bonus?

     

    These aren't just pennies from heaven they're raining down on their employees for being good fellows. It's part of how they are paid. $8.8K in bonuses = $8.8k in salary that they aren't entirely on the hook for if business goes south.

     

    Also, putting "period" at the end of a statement is in no way, shape, or form definitive or even helpful to your argument. Period.
    28 Jan 2014, 10:20 AM Reply Like
  • jcirafic
    , contributor
    Comments (246) | Send Message
     
    What you said doesn't change anything. 8.8k is excessive. They should just give them part of it as a raise. It also makes me wonder-if that's a bonus, what the heck is their salary? Just fuels the fire. As a shareholder, I have a right to be concerned about Ford's decisions on this. Maybe I'll call Mullaly later... :)
    28 Jan 2014, 10:49 AM Reply Like
  • Slick E
    , contributor
    Comments (135) | Send Message
     
    So, you think it would be better to give them a raise of $8.8K instead of an $8.8K bonus? What happens next year if profits go down? They'd be locked into a higher payment with less money coming in.

     

    I just find it incredibly weird that you'd be fine with paying someone $58K, but paying that someone $50K with an $8K bonus is somehow absurd. It's like you're just hung up on the word "bonus".
    28 Jan 2014, 01:04 PM Reply Like
  • jcirafic
    , contributor
    Comments (246) | Send Message
     
    I never said give them an 8.8k raise. I said give them part of it as a raise.

     

    I get the feeling you like to argue. Here's some advice-this is not a good way to live life. Arguing with me - or anyone online - about what words or phrases mean is just a waste of time. Let's agree to disagree. See ya.
    28 Jan 2014, 09:06 PM Reply Like
  • Ryan Takach
    , contributor
    Comments (57) | Send Message
     
    Guys let's all relax. It was a great year, they raised your dividend and paid their employees a bonus. This shows a commitment to their workforce which is equally as important as commitment to shareholders. Happy workers build better cars, IMO.
    28 Jan 2014, 10:51 AM Reply Like
  • JoseV
    , contributor
    Comments (407) | Send Message
     
    And only 174 million dollars for Mullaly since he has been CEO!
    28 Jan 2014, 10:58 AM Reply Like
  • Vistor
    , contributor
    Comments (80) | Send Message
     
    First, I work at Ford.

     

    Second, it is not a "bonus," it is profit sharing.

     

    Third, $8.8 k breaks down to some $2/hr, pre-tax. Thousands of Tier-2 workers hired under the new contract currently earn $15.77/hr vs Tier-1 with average wages of $25++/hr, with both Tiers working side by side.

     

    Fourth, the profit sharing caps out at $12k/year which again, works out to roughly $6/hr or $21/hr.

     

    Even with the profit-sharing new employees will never see the wages paid as far back as 1977. If someone want to point out an industry with billions in profits that is paying 1977 wages...I'm all ears.

     

    Oh, and jcirafic...we will be adding a 3rd shift at the Flatrock (Mustang and now Fusion) plant in the next couple of years...if you think you have what it takes, maybe you should apply...but if you've never done assembly line work, think long and hard.

     

    Been long Ford stock all my life.

     

    Onward and upward
    28 Jan 2014, 03:01 PM Reply Like
  • jcirafic
    , contributor
    Comments (246) | Send Message
     
    Vistor you don't know the first thing about me. Why the hostility?

     

    227 working days /yr * 8 hrs/day=1816 hrs/yr

     

    $8800/1816 hours = $4.85 an hour pretax, not 2@ an hour pretax

     

    Your fourth point makes no sense.

     

    I've been in construction, welder, USArmy, worked 3rd shift. You think long and hard. I've been there and done that.
    28 Jan 2014, 09:32 PM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    Vistor - Those Tier-2 wages to which you refer are competitive with what Toyota, Honda, Hyundai, Nissa, and other non-union automakers are paying their hourly labor force, and are what saved Ford from being uncompetitive with GM and the rest of the industry. Ford can only share the profits if there are profits, and the company was losing billions at the previous overly inflated and uncompetitive pay scales.
    And like most "unskilled" entry-level labor factory jobs, the pay starts off lower but can rise with inflation adjustments (COLA) and with experience and seniority. And skilled tradesmen like electricians and millwrights and such make even more.
    Those Tier 2 wages eventually expire for you, but the young kids fresh out of high school with no experience outside of "matching buds" at 420 after school should start at the lower wage. Why should they get the same pay as the senior electrician with 25 years on the job and 3 kids in college (and there so they don't have to accept Tier 2 wages after graduation).
    29 Jan 2014, 05:45 AM Reply Like
  • george_wwww
    , contributor
    Comments (19) | Send Message
     
    Ok, so blue collar and general salary roll (gsr) at Ford took the hit in 2008. Now the new blue collar group wages are competitive with the industry. Middle and senior management went virtually unscathed, percentage wise vs labor and gsrs. Now how competitive are middle and senior management pay at ford vs the industry?
    29 Jan 2014, 08:06 AM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    That is exactly it. Ford's (and GM's etc.) non-Union Salaried employees are paid on carefully planned scales that are competitive with the entire industry. The Companies pay only what it takes to keep them from jumping across town to take a job at a competitor, or at least those that they mean to keep around. No more, no less.
    29 Jan 2014, 09:51 AM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    Clarification: Meant to say:

     

    Ford's (and GM's etc.) non-Union Salaried employees are paid on carefully planned scales that are competitive with the entire industry, and based on Job Classification, Level, Responsibilities, Workload, Experience on the Job, and Job Performance Metrics from Performance Reviews and such.
    29 Jan 2014, 10:15 AM Reply Like
  • george_wwww
    , contributor
    Comments (19) | Send Message
     
    You have not answered the question. Now how competitive are middle and senior management pay at ford vs the industry? middle and senior management (MR) pay at ford vs the industry, a higher level than GSR is not competitive. MRs make mucho more at Ford and GM than their Asian counterparts.
    29 Jan 2014, 02:30 PM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    No, False. Management, Executive, and other Professional Salaried pay at Ford's is competitive with all the industry, and is performance based. Keep in mind that Ford competes for skilled executives and managers across industries as you saw for example with Alan Mulally being recruited by Microsoft. Microsoft would have had to make a competitive and superior offer to get Mulally to jump ship, and Ford would have had to up Mulally's pay if they didn't want him to leave. And managers and executives jump between companies all the time if the money is good. Which is why Ford has to pay them competitively if they want them to stay. If Toyota and other companies have lower-paid managers and executives and such, then they must not be as much in demand, and Ford certainly doesn't want them.
    Only the unions live in a communistic marketplace where everyone is paid the same. The rest of the system is capitalistic competition, and pay is based on reputation and performance, and other factors. Companies pay exactly what they must to retain the personnel they want to retain, recruit those that they want to recruit, and let the low performers whither on the vine or be terminated.
    29 Jan 2014, 03:44 PM Reply Like
  • george_wwww
    , contributor
    Comments (19) | Send Message
     
    They pay their MRs much less in Japan and China and Europe based companies.
    29 Jan 2014, 03:57 PM Reply Like
  • Tdot
    , contributor
    Comments (4831) | Send Message
     
    George, need to try to stay focused on US based, large, major industrial and high technology companies.
    29 Jan 2014, 04:20 PM Reply Like
  • Jetson3
    , contributor
    Comments (2) | Send Message
     
    It's simple... If you think you are worth more then go find someone to pay you what you think you are worth. I have never gotten a bonus at anywhere I worked.
    People who do not agree with the bonuses remember 3 things.
    1. It is none of your business what another person makes
    2.The media loves to print this stuff to cause division and polarize the masses.
    3. If you are a share holder and do not like the way the company is run... sell your stock and move on.
    Usually any disagreement to what someone makes is out of jealousy anyway.
    Hey I hope every automaker employee makes 40 trillion dollars in bonuses! Good for them. Its nice to see a person succeed.
    Every time the automakers pay a bonus the whole county gets all up in arms...Get a life people!
    10 Feb 2014, 05:27 PM Reply Like
  • Jetson3
    , contributor
    Comments (2) | Send Message
     
    Simply put by someone who does not work as an autoworker...
    ITS NONE OF YOUR BUSINESS WHAT ANOTHER PERSON MAKES!
    If you think you re are worth more then go make it!
    Shareholders not agreeing with a bonuses should sell their stock and move on!
    When jealousy rears its ugly head!
    Every time these auto company's pass out a bonus the whole country is all up in arms in a jealous rage... Get a life people
    10 Feb 2014, 05:27 PM Reply Like
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