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Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

Ford to pay $17.35 million over Escape recall

Ford had a bit of a recall spree around this time last year, with a pair of issues on the then-new 2013 Escape, followed by a recall of 423,000 2001 to 2004 Escapes because they might accelerate of their own accord. Accordingly, Uncle Sam pasted Ford with a $17.35 million fine because it took too long to inform customers, according to a report from Automotive News.
Ford agreed to settle with the National Highway Traffic Safety Administration, accepting the fine but not admitting fault. The recall, which afflicted Escapes with the 3.0-liter V-6 along with 217,000 Mazda Tributes from 2001 to 2006 and 2008, was due to faulty gas pedals that could stay down after a driver removed their foot.
Ford issued a statement regarding the fine, saying, "We take the safety of our customers seriously and continuously evaluate our processes for improvements. While we are confident in our current processes for quickly identifying and addressing potential vehicle issues, Ford agreed to this settlement to avoid a lengthy dispute with the government."

Ford worker files for UAW dues refund, stirs right-to-work debate

Let's start with some history: Ford's Dearborn truck plant, part of the company's massive River Rouge complex, was the center of a strike in 1941 that led to Ford signing the first "closed shop" agreement in the industry. The agreement obliged every worker at the plant to be a dues-paying member of the United Auto Workers. In December 2012, however, Michigan Governor Rick Snyder signed legislation making Michigan a right-to-work state, which outlawed closed shops. The new law gave workers the right to opt out of union membership and stop paying dues even if they were still covered by union activities like collective bargaining. For employees at the Dearborn plant, the right-to-work clauses take effect at the end of their current contract in 2015.
As a tool-and-die maker at Ford's Dearborn plant for 16 years, Todd Lemire pays dues to the UAW - about two hours' salary per month. However, he's been unhappy with the UAW's support of the Democratic party, and not wanting to wait until next year to be out of the UAW entirely he invoked his Beck Rights, which state that a non-member of a union does not have to pay dues to support non-core activities, such as political spending. But Lemire wasn't happy that Ford still subtracted the total amount of dues, with the UAW reimbursing the difference, so he filed suit with the National Labor Relations Board, feeling that the workaround violates his rights.
Lemire's case is just a week old, so it could be a while before a resolution. Yet, as September 15, 2015 draws near and the right-to-work laws take full effect for Michigan workers - and others wonder whether it could help revitalize the state's manufacturing base - a case like this adds more fuel to the discussion.