Tag: Buyout

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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