Skip to comments.Ford offers buyouts to all UAW workers
Posted on 12/21/2009 12:48:47 PM PST by Sub-Driver
Ford offers buyouts to all UAW workers Photo 3:27pm EST
DETROIT (Reuters) - Ford Motor Co said Monday it is offering its 41,000 U.S. factory workers buyouts and early retirement offers in a bid to reduce its payroll costs as it aims to return to profit by 2011.
The buyouts mark the second round of such offers for Ford workers represented by the United Auto Workers union. About 1,000 workers took offers to leave the automaker in July.
Ford workers have until late January to accept the offers, which include payouts of up to $70,000 cash for newer hires to $60,000 cash for veterans already eligible for retirement.
"Despite a strengthening in our business, we still have a surplus in employees," said Ford spokesman Mark Truby.
(Excerpt) Read more at reuters.com ...
I had expected GM & Chrysler to do this earlier. If they did do it,I missed it.
Is this a union-busting strategy?
41,000 fewer UAW members !!!! Hope they don’t count as legacies.
I like Ford. I loathe the stinking UAW.
Go Ford! Divest yourself of all UAW members. It will improve your image in the market place and improve your product. Get rid of the union and you won’t be able to build cars fast enough!
Sounds more like a strategy designed to make Ford competitive and profitable over the long term.
Should have been done decades ago.
Hmmm, everywhere you look these days, there is a surplus of employees.
Sadly, and to quote Marxist Obama... and you ain't seen nuthin' yet.
Seeing as their owned in large part by the UAW I wouldn't hold my breath for that to happen.
Sounds like it. If Ford can dump UAW, they can leave Detroit for a right-to-work state.
It’s not quite the same as banning UAW members from all Ford-owned property and instituting a policy of hiring non-unionized employees, but it’s a nice start.
I know they’re cutting dental benefits. They cut back the dividend checks to deceased retirees’ spouses to 65%. When mom complains I tell her to thank God that Ford did not take bailout money.
We can only hope. The only good union is a dead one.
Perhaps Ford wants to go back to being an auto manufacturer instead of a health care & retirement services company.
That would help Ford and American industry in general.
Alright. UAW declared war on Ford, now Ford has countered.
Partly, but that’s not the macro-economic issue here.
There is an abundance of auto production in the world, period. There is far too much auto production capacity in the US, and the world (esp. Japan, Korea and the EU combined) to allow all companies to survive in their current form.
This is why GM got to the point of rolling up Saab. Is there a need for Saab cars out there? Nope. They fulfill no unique product requirement in the market, unlike (eg) Subaru, which has a pretty unique product in a niche market. Saab is just another Euro-weenie car, not unlike a dozen others.
Ford’s management (which is increasingly from outside Detroit) now sees this situation for what it is: a deflationary environment, where the consumer’s buying power will be crushed by declining wages and declining credit availability. Therefore, auto consumption will be constricted for years and years going forward, exacerbating the over-capacity in the US auto market.
The #1 obstacle to the Big Three shedding capacity has been the UAW - who have demanded featherbedding writ large in the form of keeping entire unprofitable product lines/plants in place, bleeding money off the balance sheet. This is what Ford wants to end-run by buying out the UAW, not the usual salary/benefit issues that the UAW imposes on Ford. There’s something else that Ford is probably looking to end-run here too, which is the UAW’s habit of “pattern bargaining” - which means that when the UAW shakes down Uncle Sugar over at Government Motors, the UAW’s precedent is to apply that deal to the other two automakers by previous contract requirement.
Ford is smart to get out from under the UAW. If they can get enough of the UAW to take the buy-out, I might just buy a buttload of F.
If I were them I would take the money and run.
An entire nation held hostage to a hereditary workers’ guild.
Is this a union-busting strategy?
Possibly. Ford competes with two American Car companies owned by the UAW. If it buys out its current union staff it can then say to the UAW to take a hike based on Anti Trust basis. The anti-trust laws are intended to prevent monopolies, the UAW cannot own a car company and then represent the workers of its competitors. I don’t think bammy and his minions really thought this one through. Ford will become a freemans company and with its newly designed fleet of cars will be able to run circles around GM and Chrysler. Look for Ford to implement their flex manufacturing with a freemen workers. They do it in Brazil with very good results. Imagine the amount of featherbedding they rid themselves of that GM and Chrysler have to maintain. This is what I think they are up to, whether they can pull it off in a facist state remains to be seen. If they are successful, I will buy their cars.
(psssst.... It’s “you’re”, as in “you are”)
Not GM and Chrysler.
Shoulda bought Ford stock when it was around $1.
Problem is they may well ask for a bailout to pay for it!
In the short run, that would be VERY, VERY difficult. Government-owned Chrysler and GM have, essentially, unlimited resources at their disposal. Whatever they do, the taxpayers must pay. (After all, they're Too Big To Fail!)
Ford doesn't have unlimited resources.
You still seem to have gotten the drift, o’ wise one.
Can they do this?
ALL of them?? Pretty amazing, isn’t it?
“Theres something else that Ford is probably looking to end-run here too, which is the UAWs habit of pattern bargaining...”
Since the UAW owns part of Chrysler & GM, while Ford is doing alright without government welfare, I think the UAW will select Ford as their target company for negotiating. If they choose Chrysler or GM they will be negotiating against thenselves.
Yore rite. Speling shudunt matr. If u kin till watt he meens, than its awl gud.
If it is, I'll never drive anything but a Ford for the rest of my life.
I know. It hurts. Soon as they said no to the bailout I should have bought as much as I could gobble up. Think it was about 2.2 at the time (Oct 24, 08). They are at a 3 year high of 9.68 today.
That would have been nice rate of return.
Not like there is a shortage of workers in Detroit.
I high tailed it much to their surprise. They thought they were doing me a favor offering part-time. But with the economy and this business tanking. I just needed to move on and use my time to focus on new employment.
Bottom line, no matter how pretty they said it...I was fired! Why would you stay at a company that fires you? And I'm the soul supporter ta boot! I have not yet regretted that decision and don't expect to. But every one has to determine this decision themselves, and I sought many advisors before I made it.
In the short run, that would be VERY, VERY difficult. Government-owned Chrysler and GM have, essentially, unlimited resources at their disposal. Whatever they do, the taxpayers must pay. (After all, they’re Too Big To Fail!)
GM and Chrysler will be around until 2012, then they will have to repay the govt or be broken up. At that time, should Ford’s buyout plan work, they will be able to sell cars at a profit while GM/Chrysler sell cars to fund their workers retirement plan. Amazing thing about profits, they allow you to stay in business, innovate and attract investors. Should Ford once again become master of their domain, they will be very profitable. Their vehicles have quality and without the cost and restraints of UAW they will become very profitable. If Ford is successful, look for the UAW to waste away to nothing. Maybe they can represent the bowling alley pin setters?
GM and Chryslwer should have gone into bankruptcy and voided the contracts with the union.
stop confusing things with facts.
Yeah, that will happen.
Don't expect ANYTHING from this administration to turn out the way it was sold, FRiend.
I remember hearing when they said no to the bailout and thinking that Americans would reward them for that.
This would fit in nicely with my plan to stop working when all these new taxes on my labor begin. I am not going haul my old body out of bed every day to have the leeches suck more blood from me. I’m going to become a leech.
Right off the Ford payroll, and right on to our payroll (tax payers).
They didn’t screw me by taking bailout cash. I rewarded their good behaviour. ;-)
Hell if they can destroy the UAW they've got a fighting shot at making Michigan a right-to-work state.
Much the same happened with American Axle. I bought when it was 1.88/share. It is much more than that now.