Ford union workers
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From: Ohio
Ford union workers
Did you guys watch the news. Union workers took a pay freeze when the whole auto industry went belly up a couple years back. Ford did not take bail-out money stock was around 1.50/share. 2yrs later and millions of dollars in bonus's for exec's stock around 10x what it was, union workers still on a pay freeze. They are not happy. Some are talking Strike.....so the news report states. That would suck, But I see where if I worked there it would leave a bad taste in my mouth. Ford has done a really good job the past 2 years, the workers should be rewarded.
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DETROIT—Steve Dungan has a $5,000 bonus check on the way from Ford and a dream of vacationing in Ireland with his wife. But for now, the Dungans are staying put, and the money is going in the bank.
"It just doesn't seem to make a whole lot of sense to buy something big right now, unless it's something you need," said Mr. Dungan, 49 years old, who works at Ford Motor Co.'s axle plant in Sterling Heights, Mich.
The U.S. auto industry's return to profitability will put more than $400 million in bonuses in the pockets of unionized workers this year, the first big payout after a decade-long drought. But the economic impact of those payouts on Michigan and other auto communities is likely to be muted, with pent-up demand tempered by 10 years of piled-up obligations.
"A line worker—a guy who puts a left door on a Ford Taurus—used to make $95,000 to $100,000 a year with overtime," Mr. Terrell said. "Now that guy is a $60,000-a-year guy. Does he have four toys? No. Now he has two."
http://www.marketwatch.com/story/det...ank-2011-03-08
"It just doesn't seem to make a whole lot of sense to buy something big right now, unless it's something you need," said Mr. Dungan, 49 years old, who works at Ford Motor Co.'s axle plant in Sterling Heights, Mich.
The U.S. auto industry's return to profitability will put more than $400 million in bonuses in the pockets of unionized workers this year, the first big payout after a decade-long drought. But the economic impact of those payouts on Michigan and other auto communities is likely to be muted, with pent-up demand tempered by 10 years of piled-up obligations.
"A line worker—a guy who puts a left door on a Ford Taurus—used to make $95,000 to $100,000 a year with overtime," Mr. Terrell said. "Now that guy is a $60,000-a-year guy. Does he have four toys? No. Now he has two."
http://www.marketwatch.com/story/det...ank-2011-03-08
Plus you didn't mention how many bought or were rewarded with stock incentives when the share price was above $15 for many years - only to see it tank down to the $1.50. The part of many whose compensation comes from stock incentives see their holdings fluctuate daily - whereas union hourly workers not so much. Stock incentives = compensation at risk. Union wages (& bennies) = no risk.
Besides, with GM & Chysler having wiped their debt clean via banko
, they have much more of their profitability to play with in regards to pricing and incentives. Ford's profits not only have to be used for ongoing operations and compensation, but paying down their debt.
Ford also announced plans to further strengthen its balance sheet by paying down its revolving credit line by $2 billion and prepay the remaining $3.6 billion in debt owed to a retiree health care trust.
Now that Ford is once again turning a profit, it is using the surplus cash to pay down its debt, which will result in lower interest payments and eventually an improved credit rating.
Ford's debt will be reduced by $10.8 billion this year, Mulally said, which should result in savings of $800 million in annualized interest payments.
http://money.cnn.com/2010/10/26/news...ings/index.htm
Now that Ford is once again turning a profit, it is using the surplus cash to pay down its debt, which will result in lower interest payments and eventually an improved credit rating.
Ford's debt will be reduced by $10.8 billion this year, Mulally said, which should result in savings of $800 million in annualized interest payments.
http://money.cnn.com/2010/10/26/news...ings/index.htm
And though you mention 2 yrs of strong profits, you forgot the recent years of massive losses of several billion/yr. since 2005.
Personally, I think more compensation should be a mix of salary/hourly with a profit sharing incentive for all companies and all workers. Ford is finally competitive with worldwide manufacturers. It would be stupid for union leadership to make such high demands so as to negate all the effort everybody has put in these last 5 years.
But as to the coming union negotiations, with what I've seen in the news lately, I won't be buying any Ford shares in the near term.
Last edited by cdynaco; Mar 26, 2011 at 12:52 PM.
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Originally Posted by cdynaco
You didn't mention the profit sharing.
And just because Mulally and others are rewarded with stock incentives, does not mean the company is cutting checks out of pocket - like they would have to for substantial union raises. They're issuing shares in the company (at current prices) which ties these execs to future performance. And those profits were from worldwide operations, not just US and/or Detroit union workers.
Plus you didn't mention how many bought or were rewarded with stock incentives when the share price was above $15 for many years - only to see it tank down to the $1.50. The part of many whose compensation comes from stock incentives see their holdings fluctuate daily - whereas union hourly workers not so much. Stock incentives = compensation at risk. Union wages (& bennies) = no risk.
Besides, with GM & Chysler having wiped their debt clean via banko
, they have much more of their profitability to play with in regards to pricing and incentives. Ford's profits not only have to be used for ongoing operations and compensation, but paying down their debt.Prudence dictates everybody keeps reasonable rewards with incentives during this current growth phase. The economy is no way out of the woods yet... Annual auto sales are still in the toilet compared the recent years before the Great Implosion.
Personally, I think more compensation should be a mix of salary/hourly with a profit sharing incentive for all companies. Ford is finally competitive with worldwide manufacturers. It would be stupid for union leadership to make such high demands so as to negate all the effort everybody has put in these last 5 years.
But as to the coming union negotiations, with what I've seen in the news lately, I won't be buying any Ford shares in the near term.
were I'm at we will get a 3% bonus which isn't $1,000.Sent from my iPhone using TMS Forum
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