Ford offers buyout packages to 75,000 workers |
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Fri, 15 Sep 2006 10:55
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DETROIT - The Ford Motor Company announced that it will be extending buyout and early retirement plans to all of its unionized hourly employees, who number 75,000. Ford revealed the plans after union officials disclosed that the company would offer $140,000 each to workers.
Also Anne Stevens, chief operating officer of Ford's America and Dave Szczupak, group vice president are set to leave. Analysts predicted that almost 30,000 workers would take advantage of Ford's offer. Craig Hutson of GimmeCredit said Ford would want everyone to take up the offer.
Around 6,500 workers represented by the United Auto Workers (UAW) have taken previous buyout and early retirement offers. UAW revealed the fresh proposal to its workers on Thursday. "Once again, our members are stepping up to make hard choices under difficult circumstances," UAW President Ron Gettelfinger said. "Now, it's Ford Motor Co.'s responsibility to lead this company in a positive direction — which means using the skills, experience and dedication to quality that UAW members demonstrate every day in order to deliver quality vehicles to customers."
The buyouts are aimed to easing the burden on Ford, which is in the red by almost $12 billion. Ford has taken up the "Way Forward" restructuring plan, which in January asked for 30,000 job cuts. Around 12 facilities are also expected to close by 2012.
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GM’s sales up by 41 percent; sales boosted by heavy discount rates 