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Ford Makes Major Changes to Company Policy

When you think of American cars, chances are you think of the Ford Motor Company. And why is that? For one thing, Henry Ford was one of several automotive pioneers who helped this country get on the road in gasoline-propelled vehicles. The company, with a history steeped in that of the US and which has become a household name, is probably one of the most famous automotive companies in the world. That is precisely why many people cannot understand why Ford has recently changed its company policy regarding worker benefits.

?As you look at all of our Way Forward actions - from our accelerated product plans to our attack on costs - you can see that we are meeting our challenges head-on. We recognize that, in doing so, this is a period of uncertainty and anxiousness for the entire Ford team. But we remain committed to candid and open communications throughout the process. Rest assured that, by working together, we are building a much stronger Ford Motor Co. and a more secure future,? said Mark Fields in a memo to employees. The face of business has been changing for this company, and it is becoming quite apparent in the cutting of benefits for workers.

In the first nine months of the year, Ford lost US 7.24 billion dollars. This resulted in a cut of thousands of jobs as well as the need to close plants to cut costs over the next few years. The latest cuts also include some good news, however. Ford is restoring a company match to its 401(k) plan, paying 60 cents on the dollar up to 5 percent of an employee?s base salary. Conversely, the merit pay cut and a 30 percent increase in health insurance contributions will be translated into receiving less money from the company in 2007 than they received this year among white-collar workers. These are major business changes for the company, and it doesn?t seem like workers have seen the last of them.