Ford Shares its Success with Production Workers via Big Bonuses

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Hourly workers at Ford’s U.S. facilities get $1,000 for each billion of revenue, leading to $7,600 for 2018.

According to a report by The Buffalo News, Union Auto Workers at Ford facilities around the United States will be getting a check for $7,600 on March 14th as part of the UAW’s profit-sharing program. While the initial report applies specifically to members of the United Auto Workers Local 897, which provides workers to Ford’s Buffalo Stamping Facility, the profit-sharing program applies to all eligible hourly production workers from every Motor Company plant around the country. This means that thousands of workers around the United States will be getting this $7,600 check in a little over a month.

Hourly Profit Sharing

Per the current agreement between Ford Motor Company and the UAW, hourly workers receive money through the profit sharing program at the rate of $1,000 per $1 billion in company earnings before income and taxes (EBIT). Ford recently announced an EBIT figure for 2018 of $7.6 billion, meaning that each eligible hourly worker will receive $7,600.

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An eligible hourly production worker is anyone who has not “terminated their employment for a reason other than death, layoff or approved leave, retirement or sale of the operation in which they were employed”. In other words, if you are an hourly production worker at any of the Motor Company’s facilities around the United States right now, you have a nice check on the way.

At the Buffalo Stamping Plant, Ford employees around 900 hourly production workers, so when you consider the number of production facilities around the country, the number of UAW members who will be getting this check from the Motor Company could be in the tens-of-thousands.

A Drop in Ford’s Bucket

While $7,600 is serious money for the average person, consider this math. If Ford has 25,000 hourly workers who apply for this profit sharing check (that number is purely speculative), the company will be paying around $190,000,000 through this program. You might think that is a big chunk of change for the automaker, but that number is just 2.5% of the company’s income before taxes spread among all of the American workers that work in their plants across the country.

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It is a good deal for Ford while providing a significant bonus to every one of their hourly production workers.

"Before I was old enough to walk, my dad was taking me to various types of racing events, from local drag racing to the Daytona 500," says Patrick Rall, a lifetime automotive expert, diehard Dodge fan, and respected auto journalist for over 10 years. "He owned a repair shop and had a variety of performance cars when I was young, but by the time I was 16, he was ready to build me my first drag car – a 1983 Dodge Mirada that ran low 12s. I spent 10 years traveling around the country, racing with my dad by my side. While we live in different areas of the country, my dad still drag races at 80 years old in the car that he built when I was 16 while I race other vehicles, including my 2017 Dodge Challenger SRT Hellcat and my 1972 Dodge Demon 340.

"Although I went to college for accounting, my time in my dad’s shop growing up allowed me the knowledge to spend time working as a mechanic before getting my accounting degree, at which point I worked in the office of a dealership group. While I was working in the accounting world, I continued racing and taking pictures of cars at the track. Over time, I began showing off those pictures online and that led to my writing.

"Ten years ago, I left the accounting world to become a full-time automotive writer and I am living proof that if you love what you do, you will never “work” a day in your life," adds Rall, who has clocked in time as an auto mechanic, longtime drag racer and now automotive journalist who contributes to nearly a dozen popular auto websites dedicated to fellow enthusiasts.

"I love covering the automotive industry and everything involved with the job. I was fortunate to turn my love of the automotive world into a hobby that led to an exciting career, with my past of working as a mechanic and as an accountant in the automotive world provides me with a unique perspective of the industry.

"My experience drag racing for more than 20 years coupled with a newfound interest in road racing over the past decade allows me to push performance cars to their limit, while my role as a horse stable manager gives me vast experience towing and hauling with all of the newest trucks on the market today.

"Being based on Detroit," says Rall, "I never miss the North American International Auto Show, the Woodward Dream Cruise and Roadkill Nights, along with spending plenty of time raising hell on Detroit's Woodward Avenue with the best muscle car crowd in the world.

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