FoMoCo today offered buyout or retirement incentives to all of its 41,000 U.S. hourly workers as it tries to reduce costs by cutting its factory work force. While Ford was the only domestic automaker that avoided government aid and bankruptcy protection, it still has more workers than it needs to produce vehicles at current sales levels, spokesman Mark Turby told MSNBC.
“We’re just going to try to right-size our manned capacity and align it with demand,” Truby said.
Under the terms of its new contract with the UAW, the employees get most of their pay for a year depending on seniority level. They also get a portion of their wages for another year before they are removed from the payroll.
The buyout package includes $50,000 cash and a choice of a $25,000 new vehicle voucher or $20,000 more in cash. It also includes six months of basic health care coverage.
The retirement package offers $40,000 for skilled trades workers and $20,000 for nonskilled employees. To be eligible for a retirement package, workers must have worked either 30 years or more, must be at least 55-years or older with 10 years of service or 65 with at least one year.
– By: Omar Rana