By on January 21, 2010

Keep on truckin' (courtesy:mlive.com)

Ford may be trying to do their bit about overcapacity issues, but they’re having little success with it.¬†The Freep reports that a buyout program by Ford, which was offered to 41,000 hourly workers, has few takers. Very few. The program was issued on December the 17th and due to expire on Friday the 22nd of January.¬†“They’ve offered it so many times, the ones that wanted them already took them,” said Rocky Comito, president of UAW Local 862. The deal offers early retirement or a buyout lump sum of between $20,000 to $50,000 plus either a voucher for $25,000 or $20,000 for a new vehicle. Presumably, Mexican Fusions won’t be high on their shopping list. However, Ford may have a new problem surfacing. Due to Ford’s rising stock price, higher sales and substantial profits, workers will start to see the current buyout package as small and may hang on for a better deal. Couple that with the dour economic climate & low prospects of finding another job and that’s even less reason to take the buyout.¬†“It doesn’t do much for people,” said Jeff Terry, president of UAW Local 228. Once again, the mere perception of relative success at Ford turns out to hurt as much as it helps.
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11 Comments on “Ford Buyout Offer Draws Little Interest...”


  • avatar
    mikey

    20 to 50k to walk away from a job like that?  I got about seven of those offers stapled to my garage wall. We had the same issue at GM. If you want people to go, make  too good to say no to.

    ¬†¬† See the guy in the photo working on the rear door frame? He doesn’t do that job for eight hours a day every day.¬†

    ¬†I know why. Bit I’ll bet nobody else does.

    • 0 avatar
      Robert.Walter

      Hi Mikey! Repetitive Work Injury … need I be more specific?

      Btw, in some of Ford’s first offers in the mid-2000′s, it was not unheard of to find rank & file fork-lift drivers, 40-years of service, getting 100k USD offers to “hit the retirement silk”… (Note: figures are order of magnitude like, but more or less accurate)…

  • avatar
    NickR

    Because raising your arms over your head all day eventually leads to high blood pressure and Occ Health said people have to move around?

    Anyway, from what I hear of the product plans at GM Oshawa they might call asking you back! :)

  • avatar
    Verbal

    You mean, “they’re having little success.”

  • avatar
    Kyle Schellenberg

    “Couple that with the dour economic climate & low prospects of finding another job and that‚Äôs even less reason to take the buyout.”

    I would assume this is the primary reason. Many of these people would have challenges finding employment in other sectors due to the specific nature of what they were trained to do (I’m taking the high road because I don’t want to say they have no skills at all). With the frigid economic conditions, there’s less likelihood to land that job as a bank teller or as a mister-fixit.

  • avatar
    mikey

    #1 That guys is installing door seal rubbers it its a terrible job and is usually performed by low seniority/younger workers.
    #2 Those trucks are have just came out of the paint oven,its hot,notice he has a shop coat on,the rest of the guys are in tee shirts.No way you do that job all day with two layers of clothes on.
    #3 He is working on a moving assembly line,and he is too far up the line.Common mistake with a guy not comfortable with the work coming to him.See the little yellow step just in front of him? The regular operator would wait for the job to clear the step.

    Yeah yeah,I know too much time on my hands.

    @Nick R The news is getting better all the time.

    @ Robert Walter yeah thats the magic number in $CDN that moved my ass out the door.

  • avatar
    Kyle Schellenberg

    Mikey, it sounds like TTAC needs to get you to do up an editorial on what life was like on the “inside”. Could be an interesting perspective.

  • avatar
    mfgreen40

    Mikey— Thanks for sharing ,it is always good to hear from someone that has been there. So why do you suppose this balding older fellow is doing this job, maybe he is just tough.

  • avatar
    NickR

    “See the little yellow step just in front of him?”

    I did notice that and wondered why it was there? Looks like an opportunity for someone moving quickly to do a faceplant.

  • avatar
    mtymsi

    Fact of the matter is they’ve had previous buyout offers that were much more lucrative. The union guy is right, pretty much everyone who wanted a buyout already took it. Unless you were thinking about retiring anyway or about to retire this offer doesn’t have nearly enough incentive to otherwise make it attractive.


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