Benefits December 18, 2001

Ford Settles Appraisal System Suit

December 18, 2001 (PLANSPONSOR.com) - Ford Motor Co. will pay $10.5 million to settle two class-action lawsuits, which charge that their performance appraisal system discriminated against older, white male employees, according to a report from Reuters.

Reported by

Camilla Klein

Under the settlement agreement, which is subject to court approval, Ford would pay $10.5 million to about 530 current and former US managers.

The lawsuits claimed that the automaker used the performance rating system to eliminate white, male, mid-level managers while favoring minorities and women.

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The policy, which was implemented by former Chief Executive Jacques Nasser, required that 10% of employees receive “As,” 80% “Bs” and 10% “Cs.” Those who receive Cs were ineligible for a raise or a bonus. Those who receive a “C” two years in a row could be demoted – or terminated.

Settlement talks steamed ahead once Nasser vacated the chief executive seat in October, according to Reuters.