Get more! Sign up for PLANSPONSOR newsletters.
Benefits December 18, 2001
Ford Settles Appraisal System Suit
December 18, 2001 (PLANSPONSOR.com) - Ford Motor Co.
will pay $10.5 million to settle two class-action lawsuits,
which charge that their performance appraisal system
discriminated against older, white male employees, according
to a report from Reuters.
Reported by Camilla Klein
Under the settlement agreement, which is subject to court approval, Ford would pay $10.5 million to about 530 current and former US managers.
The lawsuits claimed that the automaker used the performance rating system to eliminate white, male, mid-level managers while favoring minorities and women.
The policy, which was implemented by former Chief Executive Jacques Nasser, required that 10% of employees receive “As,” 80% “Bs” and 10% “Cs.” Those who receive Cs were ineligible for a raise or a bonus. Those who receive a “C” two years in a row could be demoted – or terminated.
Settlement talks steamed ahead once Nasser vacated the chief executive seat in October, according to Reuters.
Read more at:
Ford Workers Give Performance System an “F”
Ford Shifts Gears on Employee Grading System
Managers Sue Ford for Reverse Discrimination