By Frank Williams
February 11, 2008
It's the strangest form of worker buyout so far, Forbes reports that Ford sold off its driveshaft factory. And now they're offering 700 workers $140k if they stay with the plant under its new owner, Neapco. The money would be paid out over a two-year period– if the United Auto Works (UAW) agrees to the deal. The workers staying with Neapco will have to deal with a new labor contract between the UAW and the new owners; they'll most likely give-up whatever seniority they've amassed, and have a different (i.e. smaller) benefits package. Hence the "incentive." Ford is also considering offering the same deal to workers at an interior component factory they're in the process of selling to Johnson Controls.
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POWERED
February 11th, 2008 at 11:03 am
I’m surprised that in an era of FWD cars Ford would still have a driveshaft factory still. Obviously the panther platforms and the trucks still need shafts but these are commodity parts best left to suppliers, not to have the home company run them.
February 11th, 2008 at 11:23 am
Trucks and SUV’s (and AWD cars) need driveshafts too.
February 11th, 2008 at 11:25 am
GS650G: I’m sure they can also make half-shafts with CV-joints and such. Maybe they make transmission input/output shafts too.
There’s a lotta ways to get shafted these days. :)
February 11th, 2008 at 12:32 pm
Why are they offering a huge bonus to stay, when they could easily replace these workers at a LOWER rate? Every time a new auto plant or supplier opens up there is a line thousands deep for jobs.
And don’t give me any of that “skilled worker” crap. This is insanity, and the kind of reckless spending that is taking the 2.8 down.
February 11th, 2008 at 1:26 pm
Speaking of shafts.. Ford announced this morning another 9,000 jobs to probably go. GM is to announce North American earnings, er.. losses tomorrow.
February 11th, 2008 at 2:37 pm
Often, there are agreements that labor has been protected in these types of situations. For example, there may be an agreement that the new buyer must continue the current contract with the labor or that the OEM will take the labor back on.