Ford to cut more jobs in buyouts
By Tom Krisher |
December 23, 2009, Wednesday
|
Print Edition
Print Edition
FORD Motor Co offered buyout or retirement incentive packages to its 41,000 hourly workers in the United States on Monday as it tries to further reduce its factory work force.
Ford, the healthiest of Detroit's three auto makers and the only one to avoid government aid and bankruptcy protection, still has more workers than it needs to produce cars and trucks at current sales levels, said company spokesman Mark Truby.
He would not say how many workers Ford expects to take the packages, which include cash payments and other incentives such as vouchers to buy cars and short-term health insurance coverage.
"We're just going to try to right-size our manned capacity and align it with demand," Truby said.
Ford currently has 634 blue-collar workers on layoff in the US.
Under a new contract with the United Auto Workers union, the employees get most of their pay for a year depending on seniority, and a portion of their wages for another year before they are removed from the company payroll.
In the past, laid-off workers went into the "jobs bank" and were paid indefinitely even if their factory had been shut. But the union agreed to scrap the jobs bank earlier this year when all three Detroit auto makers ran into financial trouble.
The buyout package, offered to workers with at least a year's service, includes US$50,000 cash and the choice of a US$25,000 voucher to buy a vehicle or US$20,000 more in cash.
The deal also includes basic health care coverage for six months, Ford said. Workers eligible to retire can take the buyout but must wait up to 18 months before retiring.
The retirement package includes US$40,000 for skilled trades workers and US$20,000 for nonskilled employees.
To be eligible, workers have to have either 30 or more years of service, be 55 or older with 10 or more years of work, or they can be 65 with at least one year of service, the company said.
Ford, the healthiest of Detroit's three auto makers and the only one to avoid government aid and bankruptcy protection, still has more workers than it needs to produce cars and trucks at current sales levels, said company spokesman Mark Truby.
He would not say how many workers Ford expects to take the packages, which include cash payments and other incentives such as vouchers to buy cars and short-term health insurance coverage.
"We're just going to try to right-size our manned capacity and align it with demand," Truby said.
Ford currently has 634 blue-collar workers on layoff in the US.
Under a new contract with the United Auto Workers union, the employees get most of their pay for a year depending on seniority, and a portion of their wages for another year before they are removed from the company payroll.
In the past, laid-off workers went into the "jobs bank" and were paid indefinitely even if their factory had been shut. But the union agreed to scrap the jobs bank earlier this year when all three Detroit auto makers ran into financial trouble.
The buyout package, offered to workers with at least a year's service, includes US$50,000 cash and the choice of a US$25,000 voucher to buy a vehicle or US$20,000 more in cash.
The deal also includes basic health care coverage for six months, Ford said. Workers eligible to retire can take the buyout but must wait up to 18 months before retiring.
The retirement package includes US$40,000 for skilled trades workers and US$20,000 for nonskilled employees.
To be eligible, workers have to have either 30 or more years of service, be 55 or older with 10 or more years of work, or they can be 65 with at least one year of service, the company said.
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