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

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.