Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
News
November 15, 2021 01:42 PM

In competition for labor, manufacturers forced to up the ante with bonuses, wage increases

Kurt Nagl
Crain’s Detroit Business
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bridgewater Interiors
    Bridgewater Interiors

    Competition for workers has threatened the ability of manufacturers like Bridgewater Interiors to keep production lines running.

     

    In the tight labor market before the COVID-19 pandemic began, Bridgewater Interiors LLC competed mainly with other suppliers for workers.

    The Detroit-based automotive seating manufacturer faces even stiffer competition from its supplier peers today. But now it's also up against McDonald's, Walmart, Amazon and other businesses spending big on employee recruitment to keep the lights on.

    That competition has threatened the ability of Bridgewater and some other manufacturers to keep production lines running.

    As Bridgewater executives saw the labor market tighten and competition increase, their chief concern was securing enough employees to keep operations going, said Elaine Tingle, vice president of human resources.

    That proved especially challenging at the company's just-in-time Warren plant, which supplies seats for Ford's F-150 and Stellantis' Ram 1500. Despite the global microchip shortage that has forced sporadic production shutdowns across the industry, the automakers have prioritized their high-margin pickups, which meant no down time for Bridgewater."We had some close calls as far as the amount of people we had to work overtime," Tingle said. "The one thing you don't do in the automotive industry is shut the customer down."

    Bridgewater's Warren plant, the largest of its three Michigan locations, was operating with around 1,100 employees over the summer, down from the 1,300 it usually employs. Hiring fairs were largely unsuccessful, drawing just a couple of applications per day, if any, Tingle said.

    So, the company began offering $3,000 bonuses for new hires and $2,500 for employee referrals, and it increased hourly starting wages by a dollar to $17.50 and increased non-day-shift premiums by a dollar.

    "We felt like we had to go above and beyond because there's a lot of other employers out there offering incentives," Tingle said. "You can almost go to McDonald's and Walmart and places like that and their starting wages are $15 and getting closer to our starting wage in manufacturing."

    Advertising for hiring bonuses has become a common sight, from banners outside of manufacturing plants to signs at fast-food restaurants and retail shops. Employer incentives have helped fuel the so-called Great Resignation that's rippled through the workforce all the way up to the C-suite.

    The bonuses at Bridgewater brought a lot of interest. The company received 350 applications Oct. 8-15 and hired around 120, working its way toward the goal of 200 new hires. The company is monitoring costs related to bonuses and wage increases, Tingle said, but investing in employee recruitment is necessary.

    "You look at that versus the cost of shutting down a customer and jeopardizing business, then you kind of just do what you need to do," she said.

    Hourly production and skilled trade workers have been the hardest to find and hold onto, according to a recent survey conducted by the Original Equipment Suppliers Association that includes responses from 175 manufacturers based in Michigan.

    More than 70 percent of the companies surveyed said they increased wages to try to fill positions, while 46 percent offered signing bonuses and 20 percent boosted benefits.

    In August, Bureau of Labor Statistics data showed average nonsupervisory hourly manufacturing wages reached $24.01, up from $22.87 in July 2020 and up from $20.55 in August 2016.

    "Lack of qualified candidates remains the top hiring constraint as quality labor remains scarce," the OESA survey found. "Competition for other industries and wage demands remain prevalent… Offering retention and signing bonuses have been the most successful programs in offsetting the shortage of production employees."

    Webasto Roof Systems Inc. is another supplier using wage increases to lure employees. The sunroof and convertible manufacturer, which has its North America base in Auburn Hills, bumped up hourly pay by more than 20 percent to a range of $17-$30, said Corey Stowell, vice president of human resources for Webasto Roof Systems Americas.

    "Across all locations in the U.S., we have struggled to find talent due to the competitiveness of the market; there is a shortage of labor across all levels, both salaried and hourly," Stowell said in an email. "The most difficult positions to fill have been the ones with technical skillsets (robotics, mechanical, etc.). While it has made it more difficult, we have continued to operate."

    The wage increases have worked for Webasto, as well. The company has hired 325 workers over the past few months for a total of 1,692 in Michigan. The company is still hiring for 400 positions as it prepares to launch production next year for a new plant in Plymouth Township and one in New Hudson.

    In addition to wage increases, Stowell said the company rolled out retention and referral bonuses. He said Webasto's tuition reimbursement, training and development opportunities, and efforts to build a family-like culture have also helped it attract and keep employees.

    "While our efforts are currently focused on recruiting … moving from recruiting to retention is something we're actively working toward as an organization," he said.

    Retention is the next priority at Bridgewater, too. The company's $3,000 bonus comes in two installments – the first $1,500 is paid after 60 days on the job; the rest is paid after an additional 60 days. Tingle said there is a chance that employees will quit after collecting the bonus.

    "That is a fear, and we are in discussions on how we handle that," she said.

    She said she hopes the $2,500 referral bonus will help with retention. If an employee refers someone who gets hired, that employee receives $1,000 up front, then $500 after the new hire works for 120 days, then another $1,000 after they have served a full year on the job.

    "So basically, we wanted our employees to kind of be ambassadors or coaches to help bring in new employees, and also our strategy there was, if they brought someone in, they would hopefully encourage them to stay," Tingle said.

    RECOMMENDED FOR YOU
    Industry sees Biden bioplastics goal as serious signal
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Biden sets US goal to replace 90% of plastics with biomaterials
    2
    Nova declares force majeure for PE made at Ontario site
    3
    Engineering resin prices close the first quarter with a drop
    4
    Entek picks Terre Haute, Ind., for $1.5B battery separator plant
    5
    Polymer Points Live March 2023: Commodity resin prices rising, but engineering resins see drops
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified