Ford Asks Its Workers to Leave

Robert Farago
by Robert Farago

Yesterday, Ford CEO Alan Mulally told the world that he'd downsize the company if needs be. Well, needs be. After revealing that FoMoCo dropped $2.7b in the last financial quarter, the Detroit News reports that the American automaker is offering buyout to ALL of its [remaining] 54k United Auto Workers (UAW) employees. You heard right: Ford is asking every single UAW worker laboring for The Blue Oval Boyz if they'd like to abandon ship. To that end, Ford's sweetened the deal for union members with retirement packages in place. "Workers eligible for retirement will receive a lump-sum payment of $50,000 if they agree to leave the company, plus full retirement benefits. That is $15,000 more than Ford offered to retirement-eligible UAW workers in 2006. Moreover, skilled trades workers, who are among the highest paid, will receive a $70,000 buyout payment, or $35,000 more than the previous offer." Although Henry's Mob doesn't expect everyone to leave, the move paves the way for Ford to hire lower-cost replacements; you know, if they need them. The DetN ends on the usual upbeat note. "'Ford is becoming a smaller company and becoming a lower-cost company at the same time,' said Gary Chaison, a professor of labor relations at Clark University in Worcester, Mass. 'You can become profitable by becoming small.'" Ah, but will they? Watch this space.

Robert Farago
Robert Farago

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4 of 22 comments
  • MPLS MPLS on Jan 24, 2008

    There needs to be some more bloodletting at HQ in Dearborn. There are WAY too many upper to middle management types in the FoMOCo organization. This would save some money and get rid of some of the morons that have been running the show.

  • RobertSD RobertSD on Jan 24, 2008

    I don't believe Apple ever went bankrupt, and yet it shrank to almost nothingness before rising like a Phoenix from the fire.

  • Jcp2 Jcp2 on Jan 24, 2008

    You might be able to save some money, but unless they are either not morons at all, or really big morons, the morons running the show won't be getting rid of themselves anytime soon. They run the show.

  • Rtz Rtz on Jan 24, 2008

    If I worked there I'd be gone in a millisecond. Take that money and run. Abandon ship cause it's sinking! You'll be kicking yourself when you stay and Ford goes under and you didn't take that money and get a job at Toyota.