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14 September 2006 @ 08:33 pm
Ford: We're counting on science to save us, Bill!  
So, Ford wants to cut 75,000 jobs, offering voluntary redundancy and early retirement plans. The UAW rep has gone on the record saying that these look like good packages, and that Ford's management has to do something to bail out the company. You'll pardon me if I don't follow in his footsteps where he butchers the English language; the BBC was kind enough to quote him so you can read that for yourselves.

Ford apparently hired a consultant to advise them on how to best make up the shortfalls and bail the ailing car maker out of their fiscal hole. This was the solution presented.

This leads me to ask the following questions:

1) How many of Ford's upper management volunteered to take pay cuts?
2) How much would it save the company if their entire upper management took a 50% pay cut?

and finally,

3) How stupid would a consultant have to be to suggest that management take a pay cut rather than taking the safe way out and recommend layoffs?

Consultants and managers have to eat, too, right? Those daily lobster lunches don't pay for themselves.
Current Mood: amused to watch Ford die
Current Music: The Warners - Great Big Universe
Wolfteddywolf on September 15th, 2006 03:35 pm (UTC)
I am not saying this isn't a travesty, because it is.
That said, I have heard that with current union contracts it is possible for every worker who works enough overtime to earn more than their supervisor, and that the overtime was common enough.
They should, however, look at management first.
Traveler Farlandertwfarlan on September 15th, 2006 03:46 pm (UTC)
How much is "enough" overtime for that to happen? Are we talking 60 hours a week? Also, you're talking about the supervisor, who is analogous to a foreman, which is even at best estimate middle management. Middle management isn't a great pay jump, especially when you compare middle management salaries against upper management salaries.

As I implied in the post, expecting a consultant to tell upper management, aka the people who hire consultants, to take pay cuts rather that lay people off is employment suicide for that consultant. That being said, I'm curious to know if the consultant ran those numbers at all, in other words if the consultant added up all the salaries of anyone with the title "Director" or up, and looked at what kind of savings would be seen if all those people took a pay cut. Of further interest to me would be the average salaries based on rank in the company as a total of Ford's payroll. Contrast that to the direct numeric percentage of the staff numbers also based on rank. Would we see certain rank segments taking a cut of the payroll money disproportionate to their numeric presence in the staff? With rank comes benefits, that much I understand, but what ARE those numbers?