Benefits December 15, 2009

Uptick in Ford Business Prompts Benefits Replacement

December 15, 2009 (PLANSPONSOR.com) – Ford Motor Co. will reinstate its 401(k) match, salary increase program and tuition assistance in 2010, according to a company announcement.

Reported by

The Detroit Free Press reported that according to a memo to employees from Mark Fields, Ford’s president of the Americas, the company plans to implement once again in 2010:

  • 401(k) matches starting January 1, for up to 5% of base pay,
  • salaried tuition assistance for classes on or after March 1, and
  • merit increases.  

The actions apply to Ford’s salaried U.S. employees in the United States, Ford spokeswoman Marcey Evans told the newspaper.

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Ford eliminated merit pay and other benefits in 2006 – the same year it posted a $12.6 billion loss and launched its turnaround plan. The automaker eventually lost $2.7 billion in 2007 and $14.6 billion in 2008.

Evans said the company had told workers the benefits would be put back in when conditions improved. “The company really is committed to providing employees with a competitive compensation package,” she said, according to the news report.

A copy of the Fields memo is available here.

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