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Gene one

Essay by   •  February 15, 2011  •  Research Paper  •  537 Words (3 Pages)  •  942 Views

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Union and human resources Issues

Global Communications is using generic benchmarking to establish best practices for handling massive employee layoffs and union issues from Ford Motor Company leadership. The layoffs are a part of the strategic plan at Global Communications to cut costs in order to increase profitability. The following table details Ford Motor Company business:

Ford Motor Company

Location Dearborn, Michigan

Annual Revenue $160,123 Million

Products and Services Design and manufacture cars and trucks

Number of Years in Business Establish in 1903 (105 years)

Size of Company 300,000 employees

Ford Motor Company has also experienced loss of market share, a decline in company stock and losses of $12.7 billion in 2006. In a restructuring plan the company plans to close manufacturing plants in North America and cut up to 30,000 jobs by 2012. A contract with the United Auto Workers (UAW) union that ran through September 2007 required laid-off employees to be paid nearly their full pay and required Ford to offer buyout packages in order to accomplish the cuts.

In response to employee morale from massive layoffs Ford Motor Company issued bonuses to approximately 125,000 employees; including employees who have accepted buyouts to leave the company. Most union workers will receive $500 as a bonus. Ford CEO Alan Mulally communicated via email that the company and employees have made "significant improvements in quality and cost savings” (Isidore, 2007,Ð'¶10). Mulally's e-mail to employees said the bonuses are important to make sure everyone is working together to improve results at Ford. "We're recognizing these accomplishments with modest awards to encourage our continued focus on performance against objectives," the e-mail said (Isidore, 2007, Ð'¶10) “One of my priorities is to bring us together as a team," he wrote (Isidore, 2007Ð'¶22,). "Only as one team will we achieve what we all desire most - a new, more competitive and more viable Ford Motor Company that works for everyone” (Isidore, 2007,Ð'¶22).

"With today's announcement

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