Ford Considers White Collar Layoffs

What would Henry Ford say? The company he built on the strength of assembly lines and the affordable Model T is reportedly considering a plan to slash white collar staffing and benefits, as well as a new pricing strategy.

Blue collar cuts meanwhile are continuing, including offers of early retirement, with company representatives meeting Tuesday to discuss the details with union leaders – who were ordered not to reveal the details to reporters.

The idea is to slim down Ford's costs to match its smaller market share – and along the way, restore profitability.

Ford, the nation's No. 2 automaker, lost $1.4 billion in the first half of this year and announced in January that it would cut up to 30,000 jobs and close 14 facilities by 2012. But company officials say now they are working on a plan to speed up the restructuring.

Many industry analysts expect additional cuts to be made when Ford's Board of Directors meets Wednesday and Thursday to discuss the next round of restructuring, known as the "Way Forward" plan.

According to The Wall Street Journal, Ford's board of directors is expected to review a plan to cut white-collar staffing, benefits and other costs by 30 percent as part of an expanded restructuring.

The cuts to the company's salaried workers are expected to be deeper than the 4,000 white collar jobs eliminated earlier this year.

The Wall Street Journal is reporting that details of the cost-cutting efforts could be disclosed as soon as Friday. It says Ford's board is also expected to hear details about a new pricing strategy to keep prices closer to the suggested retail price.

The Detroit Free Press reports another switch. It says Ford has decided not to sell its credit financing arm, as had been previously reported.

Cuts continue to march forward on the blue collar side.

Leaders from United Auto Workers union locals across the country gathered Tuesday to talk about Ford Motor Co.'s financial situation and discuss the company's plans to expand buyout and early retirement offers to all U.S. hourly production workers.

Members of the UAW National Ford Council met in a ballroom at the Detroit Marriott at the Renaissance Center downtown. Union spokesman Roger Kerson said members were instructed not to speak with reporters about the meeting.

Kerson read a statement from Vice President Bob King saying that the focus of the meeting was on producing a better product at a better price. They also discussed working to keep good manufacturing jobs in the United States, Kerson said.

He would not comment on whether buyouts or early retirement offers were discussed.

Several UAW members said before the meeting that they would talk about the expanded retirement and buyout offers, which so far have been made mainly to workers at plants that Ford has slated for closure.

One union leader said in a memo posted on his local's Web site that a decision would be made on the offers this week.

Ford has not commented on the buyouts other than to say that everything is on the table as it goes through another round of restructuring.

UAW members at half of Ford's U.S. plants have agreed to terms on "competitive operating agreements" that enable the automaker to cut costs, Ford spokeswoman Anne Marie Gattari told The Detroit News for a Wednesday story.

"We're especially pleased with the progress that our plants are making," Gattari said. "This tells us that our employees understand the need to compete with the most efficient plants in North America."

Such agreements have included work rule and other changes that to make a plant more efficient, the company has said.

Ford's rival General Motors Corp. made buyout and early retirement offers to its production workers earlier this year. About 35,000 accepted, helping the automaker to trim its costs.