Ford offering its US factory workers buyouts and early retirement offers
By Andrew C., 30 Aug, 2010. 0 Comments
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In a bid to return to profit in 2011, Ford Motor Co. has decided to reduce payroll costs by offering its 41,000 US factory workers buyouts and early retirements. Payouts range from up to $70,000 cash for newer hires to $60,000 cash for veterans already eligible for retirement. The UAW workers will only have until late January to accept the offers. Ford spokesman Mark Truby said that even as the business strengthens, it still has a surplus in employees. Last July, about 1,000 UAW workers at Ford accepted a buyout offer. Ford is the only major US automaker to have avoided bankruptcy in the past year. Its relatively stronger position compared with domestic rivals has complicated a bid to win new UAW concessions. In November, UAW workers voted to reject a proposed cost-cutting deal for Ford that would have changed the terms of a labor contract that runs until 2011.
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