236 Out of 240 Ford Workers Snub Buyout Package

Robert Farago
by Robert Farago
236 out of 240 ford workers snub buyout package

Ford's plan to lower its labor costs is a two-stage process. First, buy-out highly-paid union workers. Second, replace them with lower-paid workers. If Ford's experience at their Ranger plant in St. Paul (MN) is anything to go by, the Blue Oval Boyz are failing at the first hurdle. The Star Tribune reports that 236 out of 240 workers have refused buy-out packages worth $50k to $140k. Seems those who've wanted to leave, have. "Only four to six workers applied for the buyout out of about 240 eligible production workers, said Roger Terveen, president of United Auto Workers Local 879. There are only 980 workers left in the plant, after buyouts in 2006 and the shutdown of the night shift." The paper hints that resurgent Ranger sales have emboldened the "survivors." "March Ranger sales rose 7.9 percent from a year ago to 8,620 units. Sales of the light truck rose 24 percent in February. Sales have picked up steam thanks to the falling U.S. dollar, rising demand in Canada and high fuel costs." Or maybe they're waiting for a better offer.

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4 of 12 comments
  • Hltguy Hltguy on Apr 07, 2008

    kjc117: Though the days of the big wage and benefits through UAW are coming to an end, those who plan correctly can still make a good living. I never understood people who have the ability to to do so do not take the time to retrain and further educate themselves, particularly when the country is full of community and state colleges. Those who sit around and bemoan the fact their job is going away and the good old days are gone are going to be floundering. The ride has been good for many for many years, but one has to change with the times. There are still plenty of opportunities in this country, however it is correct the politicians are bound and determined to piss it away through higher taxes, horrible trade deals, overspending and just being stupid.

  • on Apr 07, 2008

    Ford should think LONG AND HARD about closing this plant. The Ranger makes the GOBS of money (along with the Crown Vic, Grand Marquis, and Town Car). It would only be another bonehead move by Ford if they close this plant. All they need to do is throw a small, powerful diesel into the Ranger and sales WILL be through the roof. It would be able to tow 5K pounds and get somewhere in the range of 25-35MPG.

  • 50merc 50merc on Apr 07, 2008

    P71_CrownVic, I'm with you. It's hard to understand why Ford has so neglected the Ranger. Perhaps they figure a more appealing Ranger would just cannibalize sales of F-150's, their main moneymaker. I also suspect that Ford has secretly decided that eventually a Ranger-size truck will be sourced from Mexico or China.

  • Driving course Driving course on Apr 08, 2008

    Henry Ford knew something that seems lost on today's management there; you get good workers by paying them more when they work hard. Ford management should concentrate on creating the cars that people want to buy, now and in the future; not union bashing.