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Originally Posted by naddis01
In the US do they have superannuation, long service leave and a government pension like here in Australia?
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I don't know what information Wally has written about this since he is on my ignore list.
What there is for retirement in the US for a 30 year Ford worker, under normal circumstances, is a pension of about $2,500 - $3,000 a month, plus reduced healthcare benefits with more out of pocket costs for the retiree. After the retiree turns 65 (if retired before age 65) their retirement from Ford is
reduced by the amount of government Social Security they are elligible for. That amount is based on their lifetime earnings. If they retired after the age of 65 then their retirement already includes the reduced amount of Social Security. So let's say they are elligbile for $1,000 Social Security a month (which is expected to run out of money in 20 - 40 years), then Ford keeps $1,000 each month from the retiree's pension.
The retiree's pension is taxed just like any other income.
Buy outs are as follows:
STEP: (Special TERMINATION of Employment Program) Employees with at least one year of seniority.
$50,000 lump sum, will be taxed at maximum rate before paid to employee (total of 41% tax).
$25,000 New Vehicle Purchase voucher, will also be taxed before employee receives the voucher at maximum tax rate; $14,750 after taxes.
Basic healthcare for 6 months. Sever all ties with Ford.
SRI: (Special RETIREMENT Incentive) 30 or more years of service, or age 55 or older with 10 or more years, or age 65 or older with 1 or more years of service.
$40,000 pre-tax for skilled trades employees (41% total rate)
$20,000 pre-tax for production employees (41% total rate)
$25,000 pre-tax New Vehicle Purchase voucher ($14,750 after taxes)
Retiree would receive whatever retirement benefits they would normally be elligbile for. This is just an incentive to get them to retire.
You can also take $20,000 pre-tax in leiu of the New Vehicle voucher, taxed at the same 41% rate.
The feeling among the majority of Ford employees at our plant is that the company is looking to get rid of as many people as possible, even if it is too many. Then they can hire as many people at the $14/hr rate as possible. This is done without regard to the amount of training, experience, knowledge, and other benefits of a senior employee. Also, how will these $14/hr employees feel working next to someone doing the same, or slightly less debilitating job, for twice the money? Fresh, healthy bodies get put on the roughest jobs. The more senior employees already have carpal tunnel, artificial knees, shoulder surgery, and fused discs in their backs and necks from working the line for years.
The amount of labor to build a vehicle at Ford was roughtly 7% the cost to build a vehicle. Now with more work being done with less employees, at less pay, and other costs savings related to labor such as work rules, reduced break times, elimination of performance and holiday bonuses, etc, let's say that the amount of labor in each vehicle goes down to 5%. Whew!!!! What a savings!
Ford has done an amazing job at reducing operating costs. I have been amazed by what has been accompished, and relieved. Now I fear they are looking once again to get the HUGE savings for the company from the same 7% of the operations, even after it's been reduced to only 5%.
Let's look at that other 95% of the operations again.
Steve