Ford dangles bonuses to UAW

[1931Chevy]

http://www.detnews.com/apps/pbcs.dll...710150368/1148
Ford Motor Co. is proposing annual bonuses for union workers based on the company's performance as part of its effort to win more favorable contract terms from the United Auto Workers, according to a person familiar with the situation.

The bonuses would be similar to those CEO Alan Mulally authorized in March to reward workers for their efforts to turn around the company's struggling U.S. automobile operations. Ford wants to formalize the bonus system so hourly workers are judged by the same criteria as salaried employees.

The new system would replace the current profit-sharing formula, but Ford's workers would still receive the same annual lump-sum payouts that the UAW negotiated with General Motors Corp. and Chrysler LLC.

If the bonuses become part of the Ford contract, it would represent a significant break with terms offered by GM and Chrysler, but Ford will also be demanding more in return.

The Dearborn-based automaker wants more restrictions on its jobs bank program, which continues to provide pay and benefits to idled workers.
Ford also wants to make sure the retiree health care deal that was the backbone of the GM and Chrysler agreements is structured to give it as much relief as possible as fast as possible.

[solman98]

Does this include a deduction when profits go down?

[IROCNROL1]

Originally Posted by solman98

Does this include a deduction when profits go down?

Sorry, but it doen't work that way.

[Tone]

I think this is the way of the future for most union contracts -- there has to be some incentive to improve employee performance ... otherwise, why would anyone do anything except punch the clock and do the minimum expected?

That said, if I were a Ford employee, I'd want my bonus tied to something I had at least some control over -- say productivity or quality or cost of production. If I build the best car in the world for the cheapest price, but it's poorly designed or marketed and because of THAT I miss my bonus, I would not be a happy camper!