Ford cuts 46% of their unionized employees...

**voivod** · 11.29.06, 10:25 AM

wow...

DETROIT (AP) — Ford Motor (F) said Wednesday that about 38,000 hourly workers have accepted buyout or early retirement offers.

The figure includes approximately 30,000 buyouts during the open enrollment 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 take one of eight packages so it could reduce manufacturing capacity to better match demand.

A 38,000-worker reduction would amount to nearly a 46% cut of the 83,000 unionized employees that Ford had at the start of the year.

Ford said hourly employees who accepted the buyouts during the recent enrollment period will begin to leave the company in January 2007. All separations will be complete by September 2007, Ford said in a statement.

Workers who sign up for a package can change their minds up until the day the package takes effect, the company said.

The eight packages offered ranged from $35,000 to $140,000 depending on their years of service, age and how close workers are to retirement. One four-year package offered up to $15,000 a year for college tuition, plus half of the workers' salaries and health benefits. Another offer paid 70% 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 company said just more than half of the employees accepted the non-traditional 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 to 17.6% at the end of October from around 26% in the early 1990s.

The company expects to cut its costs by $5 billion through 2008, with further unspecified reductions in 2009.

Ford has announced plans to close 16 plants as part of the "Way Forward" restructuring plan. Nine of the plants have been identified, but the company has not named the remaining seven.

**willy4pres** · 11.29.06, 11:11 AM

That's shocking (not the cuts but how large they are).

It sucks that these people are losing their jobs but if they spent all that time gouging Ford and didn't knock some school out to help them be more competitive in the job market, I don't feel sorry for them.

Paying highschool graduates $70,000 + just to stand there and twist bolts doesn't make for a good long term business practice.

**ZeoBandit** · 11.29.06, 12:25 PM

GM cut about the same number this year. Both companies were extremely bloated and needed to slim down in order to survive.

**ZORBA5150** · 11.29.06, 01:56 PM

that and they need to make better cars.

**ZeoBandit** · 11.29.06, 02:06 PM

GM is making better cars (But they still have a ways to go). Ford on the other hand........

**willy4pres** · 11.29.06, 03:01 PM

I love how Fox is reporting this as if I should be unhappy and mad with Ford because so many workers are being laid off. I don't like it when anyone goes through hard times but that's about it concerning this issue. I buy cars, I don't work for car companies for obvious reasons. If they need to lay people off to increase their bottom line that's fine by me.

**Executionor** · 11.29.06, 03:03 PM

Originally Posted by ZeoHalen

GM is making better cars (But they still have a ways to go). Ford on the other hand........

About the only FORDs I dig currently are the Fusion and the 500 and the new stangs rae pretty cool too. I kinda like the new style of trucks, but the 97s through the 06s SUCK to me and I am a ford fan.

I saw a commercial the other day, I should say the tv was on and I heard it until I turned around to see who it was, but they were touting the car built in america, built by americans...blah blah blah, it was friggin Toyota.

FORD and GM need to get their collective shit together so we can have real arguments about who is better. I, like many people I know, find it a reach to spend $20,000+ for a new car. They need to come back down to earth and make a decent car for a decent price. just my .02

**ZORBA5150** · 11.29.06, 03:08 PM

and good gas mileage.

**WinterlessIceness** · 11.29.06, 03:10 PM

Originally Posted by Executionor

FORD and GM need to get their collective shit together so we can have real arguments about who is better.

Daimler Chrysler

**twonabomber** · 11.29.06, 03:46 PM

this has been big news here...there's an engine plant in Brook Park, and the Econolines are made further west in Lorain.

Brook Park Mayor Mark Elliott said that having 1,400 of Ford Motor Co.'s workers in his city accept the automaker's buyout offer "was more than I anticipated. It's quite a number. I expected probably half of that."

Elliott said the job loss will cost Brook Park $2 million a year, or roughly 10 percent of its $21 million general fund budget. He said he does not plan cuts in operational services, like police or fire, however. But residents should expect to see road maintenance slow down. He said the city will stretch out the lives of police cars, fire trucks and service vehicles.

"It's important for us to continue to diversify our business, to look for other business to call Brook Park home," the mayor said. He noted that a tech park in Brook Park is almost fully occupied, and said the city will work with Ford to develop new work for the Brook Park plant.

**twonabomber** · 11.29.06, 03:48 PM

10:49 a.m. (updated 1:04 p.m.)

About 30,000 employees of Ford Motor Co., or about 40 percent of its UAW workforce in the United States, have accepted buyouts from the struggling auto manufacturer.

The company announced the results of the buyout program this morning. Eight different options were offered to the nearly 75,000 members of the United Auto Workers employed at Ford plants around the country.

In Brook Park, where 3,000 UAW members work at two engine plants and a casting plant, nearly half accepted the buyout, said Garry Spencer, first vice president of the local. Of the 1,423 who signed up, a little more than 400 were skilled tradesman such as millwrights and pipefitters, while the rest were in production, he said.

Buyout numbers for Local 2000, which represents about 2,800 workers at an assembly plant in Avon Lake, and for Local 420, which represents about 800 at a stamping plant in Walton Hills, were not available immediately.

**twonabomber** · 11.29.06, 03:51 PM

here's an article on three local guys who took the buyouts. interesting read.

http://www.cleveland.com/plaindealer...440.xml&coll=2

**Elwood P.** · 11.30.06, 01:10 AM

I could see part of this coming for Ford when the rocket scientists that work for them decided to change the design of the F-150 pickup in 2004. The design/body style now is awful. Looks like a breadbox. I had a 2002 F-150 and was very happy with it. Would have bought a new Ford in 2005 if the design had remained the same. Bought a Dodge instead. Nice move Ford.

**sickman** · 11.30.06, 05:09 AM

That is the unions for you. For years they demanded and received outstanding benefits for it's union members and it is now coming back to bite them. That is why Toyota and Honda plants don't allow unions, you don't hear them cutting 46% of their work force. I have an uncle that worked for GM, he retired 15 years ago gets 80% of his sallery for his pension and his healthcare is 100% paid for. Oh yeah and he still gets an incredible discount on new GM trucks. He buys a new one every 3 years. As much as that is great for him it is deals like that that are killing these companies.

**Metal Marc** · 11.30.06, 06:12 AM

Originally Posted by sickman

That is the unions for you. For years they demanded and received outstanding benefits for it's union members and it is now coming back to bite them.

I am both a union supporter and a fan of the American automotive industry but, unfortunately, the unions are probably a decent-sized part of the problem...perhaps about 30% of it. It pains me to see this (and a post like this one) but it's true.

I have a few friends who told me their work output doesn't match their wages, but what are they supposed to do? They feel a little guilty, but they're not going to leave their jobs.

Originally Posted by sickman

That is why Toyota and Honda plants don't allow unions, you don't hear them cutting 46% of their work force.

Not only that, but Toyota, Honda, Hyundai, etc. are flexible and embrace change. Their plants are easily adaptable to new tooling, dies, processes, etc.; a large percentage of American plants aren't. We lost a GM plant here in Oklahoma City within the last year for that reason. It only produced one type of vehicle (the Envoy) and GM hadn't invested enough in the plant years ago to ensure it could easily manufacture other vehicles.