labels: ford motors, automobiles - general
Ford to cut 75,000 jobs under buyout deal with workers' union news
Our Corporate Bureau
15 September 2006

Mumabi: Ford Motor Company will offer buyout packages to its over 75,000 blue-collar workers, under a deal with the United Auto Workers Union, its main union. Two top Ford executives, including CEO for the Americas, Anne Stevens, also stepped down, a week after the new chief executive Alan Mulally took charge.

The buyout package offers compensation of up to $140,000 to all of the more than 75,000 workers at its US plants, the United Auto Workers union said.

The company had earlier offered buyouts packages to 30,000 workers at 14 US plants slated for closure.

The packages range from straight payments for younger workers to a special early retirement package for workers with 28 years of services, the union said.

Workers with 28 years of service are eligible for two years leave at 85 per cent of their regular wages, and can then retire with their full pension and health-care benefits.

Signing of the retirement packages will start on October 16, and workers have until November 27 to accept the buyout offers.

The deal will help the struggling automaker expedite a restructuring plan aimed at reversing massive losses from a steady decline in market share, which now stands near 17 per cent.

Ford reported a $1.4 billion loss in the first half of the current year amidst own forecasts pointing to a loss of up to $9 billion for the whole year.

The Detroit News had projected Ford's automotive operation losses at $5.6 billion to $5.9 billion this year, amidst a continuing erosion in Ford's market share and a steady increase in the share of rivals Toyota, Honda and Nissan.

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Ford to cut 75,000 jobs under buyout deal with workers' union