The Associated Press
July 10, 2001
DETROIT (AP) - Ford Motor CEO Jacques Nasser sent employees a memo Tuesday announcing changes in an evaluation system that is the target of at least six lawsuits.
"The negative feedback has centered around what was viewed as an inflexible system by some, and as discriminatory by a few others," Nasser wrote.
Current and former employees who are suing the automaker say the system is used unfairly to week out older white males in favor of women and minorities.
Ford management has expressed a desire to attain greater diversity in its white collar workforce.
The year-old Performance Management Process is used to evaluate about 18,000 managers and supervisors, about 5% of Ford's workforce.
Employees were graded A, B, or C. Those receiving a C could lose bonuses and raises. Two consecutive C grades could result in dismissal.
When the evaluation program started last year, it was mandated that at least 10% of the employees received C grades. The mandate was later lowered to 5% after complaints.
Nasser told employees Tuesday the letter system was being replaced by three designations: top achiever, achiever and improvement required.
He said there would be no fixed percentages for the "improvement required" group and those receiving that classification would not necessarily lose compensation. The decision would be at the discretions of the employee's supervisor.
Ford spokesman Nick Sharkey said the change in the evaluation system was not a reaction to the lawsuits.
"We have said we would review and revise as necessary," Sharkey said. "Some managers expressed concerns about the adverse effect on teamwork and morale."
"It's just window dressing," plaintiff's attorney James Fett said. "It's an implicit acknowledgement they're dirty. They know they're wrong, and they're trying to do damage control."
Fett said Tuesday's actions would not affect the lawsuits. "You can,t put the toothpaste back in the tube," he said.
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