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Free PCs Not AfFordable 150

rakerman writes: "Ford Cancels Computer Giveaway Program. I guess their 'Model E' program turned out to be an Edsel." We did at least one story about this at the time (and a Katz essay). A lot of people pointed out that the United Auto Workers union was the driving force (ha-ha) behind this program initially.
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Free PCs Not AfFordable

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  • didn't they see that other commercial when they gave a free puter to everyone and the omish peeps took the wire...................

    anyway, they should do more research first.
  • Why not charge for the PCs and more for internet access to cover their costs and still be a good deal for the employees?

    I know people that have it and love it. I'm sure they'd be willing to pay more for it.
  • by Brento ( 26177 ) <brento AT brentozar DOT com> on Saturday October 20, 2001 @03:47PM (#2455196) Homepage
    You can read even more into this than Ford is saying. Not only is Ford making a statement that they can't afford to give PC's to their employees, they're also implying a couple of other things.

    First, giving your staff free PC's isn't enough of a benefit to impress most of your staff. Let's face it, if you're working for a union-driven company like Ford, you're not living on Ramen Noodles, and you can probably afford any one of the dozens of el cheapo PC's being served up for the masses. Most of us would rather be given a credit at Best Buy to purchase the PC we really want, or maybe even peripherals if we already own a PC.

    Second, in this economy, employee perks are the last thing from anybody's mind. Ford started this when employees were hard to find. Fast forward to today: due to massive layoffs everywhere, people are much easier to come by, and you don't have to go flashing perks in order to get people on board. Giving stuff away to your staff is an increasingly hard sell to the shareholders.

    Third, the shareholders just got informed that they're getting decreased dividends for the first time that I can remember. Ford's always been a dividend-heavy company, and I'm sure it's hard for them to rationalize giving away PCs to their staff when their investors are getting less returns. Giveaways are associated with a dotcom, and typically the giveaways are cut just before the jobs are cut. Look out...
    • by Anonymous Coward
      "First, giving your staff free PC's isn't enough of a benefit to impress most of your staff. Let's face it, if you're working for a union-driven company like"

      I'm not sure what your point is, but I can assure you that the rank-and-file of the union are going to be more than happy to get something like this. I'm just not sure as to how it helps Ford.

      You could throw them a donut and there would be a committee call over who should get it ;>

      "Ford started this when employees were hard to find."

      You're kidding, right? We typically have hundreds of *extremely* hopeful canidates lining up the day before one of our cattle calls (it's not uncommon for them to sleep over in line).

      And this is for 5 to 10 jobs.

      "Third, the shareholders just got informed that they're getting decreased dividends for the first time that I can remember"

      Now this I would agree with.

      BTW, we got a sweetheart deal with AOL ($3 a month for the basic service, $5 for cable. Essentually we just pay the tax on the service). Not that I could/would use it since this be a Linux box.

      But I think that GM's plan for this is to provide (force?) business services at home to its employees. We will be able to access most if not all of the in plant services from home.

      No thanks...

    • Third, the shareholders just got informed that they're getting decreased dividends for the first time that I can remember. Ford's always been a dividend-heavy company, and I'm sure it's hard for them to rationalize giving away PCs to their staff when their investors are getting less returns.

      Another thing too: if someone is an assembly line worker, the most contact they will have with computers would be on the line. (It's not like they're going to telecommute.) So for Ford this cut is a no-brainer.

      Actually, I first heard about this (and reported [slashdot.org] it here) last week, and it didn't surprise me in the least. The only bad thing is that this is costing jobs for the people who supported these systems.
      • if someone is an assembly line worker, the most contact they will have with computers would be on the line

        no offense, but wtf are you talking about? 80%+ of the jobs on an automotive assembly line involve using air tools to screw/bolt pieces together. yes, there are lots of computers involved in the factory automation processes, but these generally require no operator intervention. they don't put computers on the factory floor so people can use them. they put them there to eliminate positions.

    • I think that cost had a lot to do with it, but not the costs of hardware, the costs of admin. After hearing the horror stories about how one sales weenie brought NIMDA into a corp network, causing $60K of damage, do you realy think they want an entire plants worth of'em sending babe-of-the-day Emails to each other through the company network?

      Who gets sued when some UAW member's kid wants to play Hard^corE^Haxor, an assemby line worker or Ford Motor Companies deep pockets that originaly bought the machine?

      And about the lay-off's, my wife work for a Ford Sub, and she gets laid-off regularly. Files for unemp for 3 days to a week then they work tens for a week to get caught back up! Effectively she's laid-off for a week but only misses 4 hours pay, actualy it pretty sweet. Don't know how they count this stuff statisticaly, does this count as a New Un-Employment Claim for the month, once it happened twice in one month.
  • "the Internet will be the equivalent of the moving assembly line of the 21st Century."

    Reactions to that statement from computer-savvy Ford employees are probably ranging from "I'm glad they stopped the giveway program" to "what are they smoking ?".

  • by Anton Anatopopov ( 529711 ) on Saturday October 20, 2001 @04:24PM (#2455264)
    While it is a good thing to have a computer-literate workforce, simply subsidising the cost of a PC was not the best way for Ford to proceed.

    What would have been more sensible would have been to provide computer training (like say RedHat certification or something like that), which would actually help the employee progress in their career.

    Simply giving them a PC was not a structured approach. My guess is that a lot of these PCs ended up being used for the kids to do their homework on, or more likely to play games.

    Ford is right to think of innovative ways to increase computer literacy, but it looks like they didn't put enough thought into the 'Model E' project.

  • by Anonymous Coward
    I am a Ford employee in the U.S., and I can confirm that all U.S. employees were able to get the computers through Model E that wanted them. There were problems in other countries, however, such as arcane tax laws that would have required employees to pay about as much in taxes as they would have to buy the computers outright.

    Also, even though HP was supplying the computers, PeoplePC was managing the Model E program (distribution and internet access), and apparently couldn't deliver on their agreement overseas. It seems PeoplePC was overly optimistic in their promises.
    • Mostly this was the fault of upper management overselling the company's abilities, then being mystified as to why the IT team couldn't implement a sale/delivery system in 20 different countries (each with different laws) immediately.

      There was just this huge disconnect between the top levels and the bottom levels. Once they brought in real managers that had real experience, it got better, but not by much.
  • I work for Ford Motor.

    Please see here: http://www.thestreet.com/tech/siliconvalley/102490 9.html [thestreet.com]

    This isnt the 'best' description of the situation, but BASICALLY the Ford PeoplePC deal has been a scam from day one.

    Ford announced this program internally as an effort to jumpstart the rank-and-file computer knowledge in order to enable the company in the new 'ecommerce' universe (robost-corporate-speak-bullshit). They invested MANY MANY millions into PeoplePC PRIOR to their IPO. PeoplePC, as some of you may rememeber, was basing its business on "we give you PC now for a 36mos. ISP contract" ala Iopener and some others... when the big Dot Bust occured, all these companies started to fail. Ford, having its NUTS in the vice for about $25 Million dollars, Ford volunteered to ENROLL every Ford employee in the PeoplePC program... the cost to Ford directly? Im not sure, maybe something, maybe nothing - frankly I have no reason to believe that it cost Ford ANYTHING to do this, I believe it was an effort to further finance PeoplePC, give them customers (keeping them working/solvent) and give the impression that PeoplePC is a viable business.. remember Ford was in bed w/ PeoplePC pre-IPO... and they had a contract deal to be able to buy another $25M at IPO stock price.

    So, basically, when PeoplePC the market ran away from all the DotComs and other fantasy-technology companies, PeoplePC became a worthless company.. they trade at like $0.18 per share.

    Ford knows the company is doomed. They are not going to 'throw good money after bad'... they are going to let PeoplePC die.

    THIS IS WHY THEY CANCELLED THE PROGRAM

    Let me tell you very frankly - there are alot of people at Ford Motor Canada that are VERY VERY ANGRY about this. It could be a very heavy point in the next CAW contract (sept'02)... and the Salary Staff (which I am one of) are VERY aware of what is really taking place... the worst thing in the world is to be this close, this aware to something like this announcment and realize that the company you are working for is a decietfull(sp?) pack of liars.

  • Um, does anyone read news besides slashdot? The car companies are getting killed right now. They're offering 0% financing just to get people into the dealerships and GM and Ford both announced several-hundred-million dollar losses for the quarter.

    This isn't about a program that doesn't make them money, it's about a new benefit that they just can't afford any more! They've cut out overtime, idled plants and are getting ready to lay off 5000 to 10,000 white collar employees. I'd say this was expendable.

  • Maybe if they would spend less money in court costs against hackers they would have the money to give their employees the benifits that they had promised!!
  • ... cooked and delivered to my door. I could save a lot of time that way.
  • A hundred years ago, Ford gives the incredible wage of $5/day (or was it $10) to reduce voluntary churning of employees, whose training was expensive.

    Years later, socialists argue the government should mandate minimum wages and use Ford as an example.

    Years later still, Ford starts giving out free computers and virtually free net access.

    Prediction: soon, socialists will promote the government give away computers and net access for free, mandated to corporations.

    Oh, wait. That happened in a Gore speech about 6 years ago. Nevermind.

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