No merit pay increases at Ford in 2011

Automaker says pay comparable with competition
|hrreporter.com|Last Updated: 02/01/2011

(Reuters) - There will be no merit pay increases in 2011 for salaried workers at Ford in the United States and Canada, according to a company spokesperson.

The U.S. automaker determined its pay is competitive with other companies it considers comparable, including General Motors and Chrysler Group.

Ford will still mete out bonuses in 2011, said Ford spokesperson Marcey Evans. Ford made merit pay increases in 2010.

Ford said it determined this year that its pay was on par with the compensation packages offered at more than 20 other companies it considers comparable on the basis of financial metrics, employee size and type of work.

These companies include diversified manufacturer 3M Co, technology and services provider IBM and Johnson & Johnson.

"Our base salaries are competitive with those companies and, since they are competitive, the decision was made not to make merit pay increases this year," said Evans.

The announcement on pay was made in an email sent to salaried employees by Mark Fields, who heads Ford's operations in North and South America.

The Detroit Free Press first reported the news.

Ford has more than 20,000 salaried employees in the United States and Canada.

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