Ford wants to shed 75,000 jobs
Ford Motor Company plans to expand buyout and early retirement offers to the company’s entire US hourly work force of 75,000 as part of a broader restructuring plan aimed at restoring the troubled No.2 American vehicle manufacturer to profitability.
Before Ford was to detail the huge restructuring plan, the move was announced yesterday afternoon by the United Auto Workers union. Ford has not said how many workers it hopes will take the offers, but it has previously announced plans to cut up to 30,000 hourly jobs by 2012.
A Ford supervisor who was told of the plan by company officials said last night that buyout and early retirement offers also would be made to entice 6,000 salaried workers to leave the company. The supervisor did not want to be identified because the plan had not yet been released.
The announcement came just after Ford’s board of directors, including new Chief Executive Officer Alan Mulally, wrapped up a two-day meeting to approve the restructuring plan designed to cut costs in light of slumping sales.
But the UAW statement only fuelled anxiety in Ford plants and offices across North America as workers braced for the announcement of further cuts scheduled for this morning.
The offers also show a realisation of Ford’s troubles by the UAW, which said in a statement that it agreed to the packages due to the “extraordinary circumstances in the domestic auto industry.”
Ford had about 82,000 workers represented by the UAW at the end of last year, but about 6,500 have taken previous buyout and early retirement offers made mainly at plants already slated for closure, company spokeswoman Marcey Evans said yesterday.
UAW President Ron Gettelfinger said its members had made hard choices under difficult circumstances.
“Now, it’s Ford’s responsibility to lead this company in a positive direction - which means using the skills, experience and dedication to quality that UAW members demonstrate every day in order to deliver quality vehicles to customers,” Gettelfinger said in a statement.
Ford has been battered by the vehicle market’s shift from trucks and sport utility vehicles to more fuel-efficient cars and crossovers. Its market share and sales have dropped while its Japanese competitors have gained.
