Ford will reinstate 401(k) matching and raises next year
FoMoCo told its employees late last week that it plans to reinstate raises, 401(k) matching and tuition assistance in 2010. The move shows a sign that the company’s reorganization plan is moving forward successfully.
“Clearly our One Ford transformation is not complete, but our plan is working,” Mark Fields, Ford”s president of the Americas said in an e-mail to employees.
Fields said that Ford has plans to:
- Reinstate 401(k) matches starting Jan. 1, for up to 5% of base pay.
- Reinstate salaried tuition assistance for classes on or after March 1.
- Funding approved for merit increases, but no details were provided.
Ford got rid of merit pay and other employee benefits in 2006 in order to cut cost. During the time where the company posted a $12.6 billion loss, Ford slashed costs by closing plants, slashing employment, suspending merit pay increases, ending the 401(k) contributions and tuition reimbursement.
Nonetheless, this is a positive sign the Mulally’s turnaround plan is working.
– By: Stephen Calogera
Source: Free Press