38,000 Workers Accept Ford's Buyout Plans

Deadline To Take One Of The 8 Packages Offered Expired Monday

(AP)  Almost half of Ford Motor Co.'s hourly production workers — 38,000 so far this year — have accepted buyouts or early retirement offers as the nation's second biggest automaker shrinks in the face of multibillion-dollar losses and fierce competition from Asian carmakers.

The figure includes approximately 30,000 buyouts during the open signup period that concluded late Monday, plus about 8,000 who took deals offered at limited plants earlier this year.

Faced with lower demand for its products, Ford had hoped that 25,000 to 30,000 workers would sign up during the just-expired round of buyout offers so it could reduce manufacturing capacity to better match demand. The number who did was at the top end of that range.

The 38,000-worker reduction this year would amount to nearly 46 percent of the 83,000 unionized employees that Ford had at the start of the year. Ford has 10,423 unionized workers at nine plants in Ohio.

Ford shares rose 4 cents to $8.19 in midday trading on the New York Stock Exchange.

Those who accepted the buyout packages will begin to leave the company starting in January, the company said.

The eight packages offered to employees ranged from $35,000 to $140,000 depending on their years of service, age and how close they are to retirement. One four-year package offered up to $15,000 per year for college tuition, plus half of the workers' salaries and health benefits. Another offer paid 70 percent of employees' salaries and tuition for two years.

"One of Ford's priorities, and a large cost component of our `Way Forward' plan for North America, is our ability to adjust manufacturing capacity with demand, while continuing to reduce operating costs and becoming more efficient," Ford President and Chief Executive Alan Mulally said in a statement. "While I know that in many cases decisions to leave the company were difficult for our employees, the acceptances received through this voluntary effort will help Ford to become more competitive."

The open enrollment period began in October. The offers included traditional packages for employees eligible for retirement, as well as nontraditional packages for employees with at least one year of service.

The company said just more than half of the employees accepted the nontraditional packages, which provided options such as lump-sum payments, tuition reimbursements or scholarship funds for family members.

Ford lost $7 billion in the first nine months of the year, and the company on Monday announced that it plans to get about $18 billion in financing due to negative operating cash flow and to pay for its restructuring. Ford's share of the market has declined from around 26 percent in the early 1990s to 17.6 percent at the end of October.

The company expects to cut its annual operating costs by $5 billion through 2008 through a combination of the reductions in hourly workers and by also offering packages to 10,000 white-collar workers, with further unspecified reductions in 2009.

Ford spokeswoman Marcey Evans said the company is offering three programs to salaried workers — two early retirement packages and a buyout program. If the salaried workers are offered one of the packages, they are not able to select another, although the programs at this point are voluntary, she said.

Offers for two of the programs already have been made, while a third will go out in mid-December, she said.

"We think that the majority of the people who take the voluntary separation packages will do so by the end of the first quarter," Evans said.

Ford has 1,210 salaried workers at its Ohio operations.

Ford has announced plans to close 16 plants as part of the restructuring plan. Nine of the plants have been identified — including a transmission plant in Batavia near Cincinnati and a stamping plant in Maumee near Toledo — but the company has not named the remaining seven.

The company has said it doesn't expect to return to profitability until 2009, and that things would get even worse in the fourth quarter as market share continues to drop and Ford pays for further plant closures and job cuts to bring its manufacturing in line with lower demand.

[bluestardad]

I feel so sorry for these Ford Employees, heck now they may have to show up for a real job 5 days a week and leave their lawn chairs at home.

The military pulled this same stunt during the Clinton era, a lot guys jumped at the chance to cash in, but now are regretting it as they sold their rights to the hospitals, VA, and retirement pensions. I personally like my pension, my daughter said to me 5 years ago: "Now let me get this straight....they pay you not to go to work?" Yep...."Cool!"

[olebd]

Welcome to reality. Most of us don't get $40 per hour to turn a screwdriver. What's a pension? I have to pay into a 401k. Cheap healthcare and prescription drugs? I have an HMO. All on a high school diploma? The world demands at least a four year college degree to make it. Unless you want to take a job away from a poor illegal immigrant.

[olebd]

Oh, also:

A union fighting for my rights and job? Not a chance.

[neitherone]

Come on! Show some love for the Ford employees. Yes they're lucky to at least get a buyout options but many live in the areas where Ford was the sole jobs source. Many families will be forced to relocate now.

[mjv2944]

Multiply the 38,000 by 4 or 5,by the time you figure all the suppliers that will be laid off, and, bingo, there are that many fewer people to buy their products. And the merry-go-round continues. Our politicians better wake up, without the middle class being taxed to death, who's going to pay for all their pork?

[antoniof123]

The real problem with Ford like the other auto makers is the benefits that the companies incur after they leave like medical think about paying around 1,500 to 1,600 per month per retired employee for the rest of there life and in some cases their kids life. Gee and I though we could not compete due to cheap labor cost outside of the country. Fat chance it is because once again the medical industry is out of control also with so many other industries.

[nothappyatall]

If the rest were smart, when offered this cash they should have taken it and RAN, because one way or the other the ones who DIDN'T will lose their jobs anyway- layoffs, plant closure or fired for various BS reasons.

They offer you cash to retire/leave, TAKE the 35 grand or whatever and run cause the next stop is you get zippo.

[nothappyatall]

I read they average $65 an hour in wages and benefits, I feel SOOOO sorry for these people

NOT!

[mjv2944]

All wages and benefits are NEGOTIATED!!!!! It takes two to tango. Both have equal amounts of fault.

[bluestardad]

Poor Union workers, their productivity cost ratio is so low that the company pays them not to come back! How sad is that?

[thgdriver]

Ford is crying about all the imported autos, If those over paid workers built a better car, Ford would not be in this spot They have been building *** for years and it all is catching up to them.


And you all thought we won W W 2, better take another look around.

[thgdriver]

What, I am not allowed to say cra#?

[thgdriver]

Look, I have a relative that works at a dealersh-it, he is the new car pre-delivery guy, they pay him 1/3 what the union guys get to make the car deliverable to a customer. Radios that dont work, windows wont work, doors and locks that wont work, trunks that leak rain ,various rattles and squeaks and on and on.

And guess what, if he does not fix it right the first time, they do not pay him for a refix.
Hel#, the union guys did not even build it right the first time for 3 times the money he makes.

[sharncedar]

You idiots - they are setting up here to make the cars in China. I can't believe you are blaming American workers when these vicious traitors are destroying your country around you. Where are your kids going to work, at Taco Bell? The other jobs in America, the "service" and "management" jobs are derivative of the productive jobs, like manufacturing. Without those basic productive, export producing jobs, the others will slowly dry up over time, since we can't sustain borrowing based on the good credit of our former country's reputation forever.

How dumb you are to blame unions. When you understand your folly, you'll really be ashamed. We had many more and much stronger unions through our glory years where our economoy dominated the world, it is the union-busting free traitors starting with Reagan who destroyed America. And you are buying their stupid propaganda again.

[sharncedar]

If unions were the problem, then the manufacturing segment would be better off now than in the 1960's. But in the 1960's, with 30% of Americans in unions, we ruled the world in all segments of manufacturing. Best products, best prices, hands down. Now we have busted the unions, and we are losing fast. Why? Tell me, you genius economist wannabes. If you union-haters are so smart, why is it the country you rule is failing?

Actually you are 100% wrong and backwards. Empowered workers who believe in the system make much better products, its union-busting that killed our manufacturing economy, starting with Reagan, may he rot in Hell.

[frankly6]

Toyota and Honda simply make better, more innovative cars.

The US auto industry has been dragging it's feet on improving fuel efficiency. They've been saying that it would cut into profits. Look around. The manufacturers that make the most fuel efficient vehicles (Toyota and Honda) are the most profitable!

When you've lost your way. Model success. Do what they do but do it better.

[katia327]

This all started when STUPID people, started buying the foreign garbage. Don't tell me how much better the cars were. Our American workers take PRIDE, in their products. We built good vehicles. Everyone in THIS country, should have stood behind OUR companies, and bought OUR cars/trucks.

The American public is to blame for this downfall, and it will only get worse with the 'domino effect'.

For all of you who say the foreign manufacturers build a better vehicle? Bull. DUMB people bought them because they were CHEAPER, rather than support OUR companies and economy.

[olebd]

We'll all be chanting the Wal-Mart cheer in Chinese someday. I just hope by then they will have fixed the healthcare crisis.

Forget about retirement. They'll be propping our corpses up at the front door as greeters.

Durable goods will be a thing of the past. Everything will be disposable.

Shop, shop shop, sell, sell, sell, buy, buy, buy.

[bluestardad]

You are worth more at home to the company so we will pay you never to come back. What does that say about the Union Worker! The bad thing is that thousands of Tier one workers that only make twelve dollars an hour loose their jobs too then these big companies cut back production. Good thing is that after a couple years the company will be better off now that they have reduced their Union liability.

[bluestardad]

Quantifiably the Engineered Life Span of an American made Car is 5 to 7 years less than its foreign competition, do the math stupid!

[katia327]

"Quantifiably the Engineered Life Span of an American made Car is 5 to 7 years less than its foreign competition, do the math stupid!"

More bull. And I'm wondering where you get your statistics. I had two cars, over 15 years old, still running strong, when they were sold. YOU are the one who needs to brush up on his math. American made vehicles LAST.

As I said....stupid people buying foreign vehicles/garbage, have brought Ford and other UNITED STATES manufacturers and the American workers to their knees.

And if you were to call me stupid to my face, I'd have to SLAP yours.

[bluestardad]

It is cheaper for FORD to build apartments house and feed its Mexican Work force in Mexico as they are doing right now than to keep these Arrogant Ford Management and Union slugs in Detroit showing up four days a week sitting on lawn chairs at their assembly lines. The unions have bargained away the backbone of American Manufacturing with their greed and now American families are paying for the greed of a few. I have been in Tier One Automotive for almost twenty years and know first hand of Union PRIDE production. And just because your American cars lasted longer than the payoff most of them do not.

[olebd]

Aren't Hondas and Toyotas sold in the USA also now made in the USA?

[bluestardad]

katia327 I believe in equal rights and responsibilities so you would be responded to in kind. Have you registered for the draft yet or are you still living off the sacrifice of others?

[docpeter-2009]

Now that the US is going to have an additional paid 38,000 unemployed I have to wonder when the suits & ties are going to be laid off. What kind of severance packages will they get, perhaps $22 mil like Fiornia with HP?

Want to sace $$ Ford (an other corporations, including drug manufacturers)? I have a few suggestions to cut: unload the big $$ at the top (CEOs, CFOs, ect); get your name off the old Silver Dome(s), cut back on commercials (we know your name); produce a better product cheaper than we can get elsewhere; keep the blue collars, they are your backbone for production.

[tiddsanbeer]

Katia327, you are a moron's moron. Your'e the type more likely to be a SLAPEE than a SLAPPER. Calling fellow americans "stupid" for shopping around and BLAMING americans for Detroits problems is akin to you being a blue balled democrat who probably works in a plant getting paid $30/hr to put on hubcaps.

Frankly6 has it right, although I believe AMERICAN cars these days ARE AS GOOD as the Japanese. They just cost to *** much for the average blue collar worker. The unions are dragging down the big 3...thats why the fan is brown. Sure,You could cut more at the top, but the bottom is what needs cleaning now for them to survive.

[thgdriver]

olebd

I think you are right, they are built here.

Also, the dealerships employ American folks in the neighborhood, in sales, service, parts, the buildings the dealerships are in are built by American tradesmen.

Just for the record and my own experience---I have a new American car, my wife has a new foreign make.
Over a period of 3 years.
My American make was back for warranty work nine times, My wifes car was back once. They picked up my wifes car at our home and droped off a loaner. I had to take my car in and they gave me a ride to work "9 times".

Guess what my next car will be?

[thgdriver]

My point is, if the cars are built here, maintained here, by American workers, the problem form my own experience, has to be with Management from the Builder on down.

[geokir-2009]

The problem with Ford as well as the other car makers is that they have not learned from their past mistakes. They have been though this before.

I bet upper management will not feel the pain that the average Ford employee is feeling.