Ford success: Time to share it with union workers?
Ford profited from smart moves by management. Now, will Ford reward its workers in contract talks?
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UAW President Bob King has said he's not thinking about a strike. But he thinks workers should get a piece of the profits because they have each given up $7,000 to $30,000 a year in concessions since 2007. He also has called Mulally's pay "outrageous."Skip to next paragraph
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Mulally, in a recent interview, defended his compensation, saying it was determined by the company's success and the free market. He said much of his pay is "at risk" because it comes in stock that can rise and fall in price based on Ford's performance. Mulally's salary is $1.4 million, with the rest coming in stock and a bonus.
Ford's white-collar workers say the union complaints about pay are unfounded. Ford compensation records obtained by The Associated Press shows that UAW-represented hourly workers have seen larger increases in pay and benefits over the last decade than many white-collar workers.
And there are Ford factory workers that are happy with the company because they are getting overtime pay and making good money again.
The UAW, according to the records, has protected longtime factory workers from changes to health care, overtime and other benefit cuts that salaried workers were forced to take. Salaried workers pay 30 percent of their health care costs, for example, while hourly workers pay just 6 percent.
The average hourly worker at Ford made $109,020 in 2010, including wages, benefits and overtime, up 17 percent from 1999. But the average salaried factory supervisor made $99,760 in wages and benefits, up just 2 percent in the same period, the records show.
The UAW turned its attention to Ford last week after talks with Chrysler fell apart. Chrysler talks now are back on.
On Wednesday, workers at GM voted overwhelmingly to approve their contract.