Ford cuts salaried health care, 2007 merit raises

[OhioChick]

Last Update: 3:22 PM ET Nov 2, 2006

DETROIT (MarketWatch) -- In its latest move to cut costs in its slumping North American operation, Ford Motor Co. (F) on Wednesday told U.S. employees it plans to further reduce salaried health-care benefits and eliminate merit-based pay increases for white-collar workers in 2007.

The changes, outlined by a letter to employees from Ford's Americas President Mark Fields that was obtained by Dow Jones Newswires, comes as the auto maker engages in a wider effort to restructure its North American operations via the Way Forward program. The company is cutting 44,000 jobs in the region and shuttering manufacturing plants in Canada and the U.S. over the rest of the decade.

"Overall we are working hard to ensure we continue to provide competitive total compensation to our work force, while attacking our uncompetitive cost structure, including employee health care costs," Fields said in the letter. "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."

Fields acknowledged "this is a period of uncertainty and anxiousness for the entire Ford team."

http://www.marketwatch.com/news/story/story.aspx?siteid=mktw&guid=%7B8E6185AE-C41A-4048-B12E-EE7089F0D3AC%7D

[Auggie]

1. They always hit the salaried employees first -- no union.

[TheCowsCameHome]

2. White collar? Gee, I thought those guys were very important persons

Think of what they saved in union dues.