Ford Restores Merit Pay For Salaried Workers

Being employed by the single American manufacturer to have dodged the bullet in 2009 and escape bankruptcy certainly has its perks. Ford, because this is who we are talking about, will reinstate merit pay and other perks for its salaried workers, following the surprising third-quarter profit posted earlier this year.

And that's not all. Starting with April 1 (no Fool's Day prank, we hope), US salaried workers and executives will receive merit increases, based on the individual performances in 2009.

The news, first reported by the Detroit Free Press, was confirmed by spokeswoman Marcey Evans, who told Autonews that Ford has reinstated a company 401(K) matching program effective January 1. Furthermore, the tuition assistance program for salaried workers suspended in mid 2008 will be reinstated March 1.

As said, the carmaker posted an $1 billion net income for the third quarter of 2009, forcing the carmaker to state it may be "solidly profitable" next year.

Ford posted a $30.9 billion Q3 revenue, down $800 million from the same period in 2008. The manufacturer's structural costs were reduced by $1 billion in the quarter, mainly by cutting manufacturing and engineering costs (including slashing benefits, laying off personnel, and the development of global platforms).

“The Ford team delivered another solid quarter of results with strong contributions from all our business regions,” Lewis Booth, Ford CFO said when announcing the financial results. “Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges.”