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Ford offers buyouts to all UAW workers
Reuters ^

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 ...


TOPICS: Breaking News; Business/Economy; News/Current Events; US: Michigan
KEYWORDS: automakers; detroit; ford; fordmotor; uaw; unions
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The Obama economy.........
1 posted on 12/21/2009 12:48:50 PM PST by Sub-Driver
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To: Sub-Driver
smart business move.

I had expected GM & Chrysler to do this earlier. If they did do it,I missed it.

2 posted on 12/21/2009 12:51:47 PM PST by stylin19a
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To: Sub-Driver
Long overdue, but certainly appropriate.
3 posted on 12/21/2009 12:51:47 PM PST by Pox
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To: Sub-Driver

Is this a union-busting strategy?


4 posted on 12/21/2009 12:51:53 PM PST by GreyFriar (Spearhead - 3rd Armored Division 75-78 & 83-87)
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To: Sub-Driver

41,000 fewer UAW members !!!! Hope they don’t count as legacies.


5 posted on 12/21/2009 12:52:27 PM PST by stevecmd
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To: Sub-Driver

I like Ford. I loathe the stinking UAW.


6 posted on 12/21/2009 12:52:51 PM PST by Frantzie (Judge David Carter - democrat & dishonorable Marine like John Murtha.)
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To: Sub-Driver

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!


7 posted on 12/21/2009 12:52:52 PM PST by pgkdan ( I miss Ronald Reagan!)
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To: GreyFriar

Sounds more like a strategy designed to make Ford competitive and profitable over the long term.

Should have been done decades ago.


8 posted on 12/21/2009 12:53:21 PM PST by Pox
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To: Sub-Driver
...we still have a surplus in employees...

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.

.

9 posted on 12/21/2009 12:53:57 PM PST by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: stylin19a
I had expected GM & Chrysler to do this earlier. If they did do it,I missed it.

Seeing as their owned in large part by the UAW I wouldn't hold my breath for that to happen.

10 posted on 12/21/2009 12:54:06 PM PST by pgkdan ( I miss Ronald Reagan!)
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To: GreyFriar

Sounds like it. If Ford can dump UAW, they can leave Detroit for a right-to-work state.


11 posted on 12/21/2009 12:54:17 PM PST by Terabitten (Vets wrote a blank check, payable to the Constitution, for an amount up to and including their life.)
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To: GreyFriar

Hope so.


12 posted on 12/21/2009 12:54:17 PM PST by RoadGumby (For God so loved the world)
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To: Sub-Driver

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.


13 posted on 12/21/2009 12:55:24 PM PST by Terpfen (FR is being Alinskied. Remember, you only take flak when you're over the target.)
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To: Sub-Driver

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.


14 posted on 12/21/2009 12:55:59 PM PST by ReneeLynn (Socialism is SO yesterday. Fascism, it*s the new black. Mmm Mmm Mmm.)
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To: GreyFriar

Union-busting?

We can only hope. The only good union is a dead one.


15 posted on 12/21/2009 12:56:09 PM PST by Bronyaur
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To: Sub-Driver

Perhaps Ford wants to go back to being an auto manufacturer instead of a health care & retirement services company.


16 posted on 12/21/2009 12:56:32 PM PST by red-dawg
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To: Sub-Driver
I wonder if you could throw an extra % into the buyout if they de-certify the Union on the way out the door.

That would help Ford and American industry in general.

17 posted on 12/21/2009 12:57:29 PM PST by AreaMan
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To: Sub-Driver

Alright. UAW declared war on Ford, now Ford has countered.


18 posted on 12/21/2009 12:57:50 PM PST by GeronL
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To: GreyFriar

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.


19 posted on 12/21/2009 1:01:12 PM PST by NVDave
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To: Sub-Driver

If I were them I would take the money and run.


20 posted on 12/21/2009 1:01:16 PM PST by My Favorite Headache
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To: Sub-Driver

An entire nation held hostage to a hereditary workers’ guild.


21 posted on 12/21/2009 1:03:51 PM PST by Seruzawa (If you agree with the French raise your hand - If you are French raise both hands.)
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To: Sub-Driver

YOUR FIRED!


22 posted on 12/21/2009 1:05:21 PM PST by headstamp 2
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To: GreyFriar

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.


23 posted on 12/21/2009 1:06:17 PM PST by equalitybeforethelaw
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To: headstamp 2

(psssst.... It’s “you’re”, as in “you are”)


24 posted on 12/21/2009 1:06:30 PM PST by TChris ("Hello", the politician lied.)
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To: stylin19a
I seem to have noticed, lately, that Ford's TV commercials treat Toyota and Honda as "the competition".

Not GM and Chrysler.

25 posted on 12/21/2009 1:07:47 PM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: Sub-Driver

Shoulda bought Ford stock when it was around $1.


26 posted on 12/21/2009 1:08:13 PM PST by thefactor (yes, as a matter of fact, i DID only read the excerpt)
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To: stylin19a

Problem is they may well ask for a bailout to pay for it!


27 posted on 12/21/2009 1:08:40 PM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: NVDave
I might just buy a buttload of F.

I did...when it was under $2/share.
28 posted on 12/21/2009 1:09:35 PM PST by Army Air Corps (Four fried chickens and a coke)
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To: equalitybeforethelaw
Ford will become a freemans company and with its newly designed fleet of cars will be able to run circles around GM and Chrysler.

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.

29 posted on 12/21/2009 1:10:15 PM PST by TChris ("Hello", the politician lied.)
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To: TChris

You still seem to have gotten the drift, o’ wise one.


30 posted on 12/21/2009 1:12:45 PM PST by sanjuanbob
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To: Sub-Driver

Can they do this?


31 posted on 12/21/2009 1:14:15 PM PST by Plutarch
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To: Sub-Driver

ALL of them?? Pretty amazing, isn’t it?


32 posted on 12/21/2009 1:14:27 PM PST by wendy1946
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To: NVDave

“There’s something else that Ford is probably looking to end-run here too, which is the UAW’s 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.


33 posted on 12/21/2009 1:16:05 PM PST by mouske
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To: sanjuanbob

Yore rite. Speling shudunt matr. If u kin till watt he meens, than its awl gud.


34 posted on 12/21/2009 1:18:26 PM PST by TChris ("Hello", the politician lied.)
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To: GreyFriar
Is this a union-busting strategy?

If it is, I'll never drive anything but a Ford for the rest of my life.

35 posted on 12/21/2009 1:21:22 PM PST by WhistlingPastTheGraveyard (Some men just want to watch the world burn.)
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To: thefactor

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.


36 posted on 12/21/2009 1:22:38 PM PST by Domandred (Fdisk, format, and reinstall the entire .gov system. I am Jim Thompson.)
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To: Terpfen

Not like there is a shortage of workers in Detroit.


37 posted on 12/21/2009 1:25:00 PM PST by John Will
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To: My Favorite Headache
Well I faced just that decision, ten years with company.....was offered a 50% cut in hours or take severance and done. It was the forth cut.

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.

38 posted on 12/21/2009 1:25:34 PM PST by caww
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To: TChris

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?


39 posted on 12/21/2009 1:26:14 PM PST by equalitybeforethelaw
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To: stylin19a

GM and Chryslwer should have gone into bankruptcy and voided the contracts with the union.


40 posted on 12/21/2009 1:26:52 PM PST by Blood of Tyrants (The Second Amendment. Don't MAKE me use it.)
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To: Blood of Tyrants

stop confusing things with facts.


41 posted on 12/21/2009 1:28:23 PM PST by stylin19a
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To: equalitybeforethelaw
GM and Chrysler will be around until 2012, then they will have to repay the govt or be broken up.

Yeah, that will happen.

NOT!

Don't expect ANYTHING from this administration to turn out the way it was sold, FRiend.

42 posted on 12/21/2009 1:28:49 PM PST by TChris ("Hello", the politician lied.)
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To: Domandred
Their 52 week low was $1.50. Ugh!

I remember hearing when they said no to the bailout and thinking that Americans would reward them for that.

43 posted on 12/21/2009 1:29:44 PM PST by thefactor (yes, as a matter of fact, i DID only read the excerpt)
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To: Sub-Driver

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.


44 posted on 12/21/2009 1:30:41 PM PST by Trust but Verify
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To: Sub-Driver

Right off the Ford payroll, and right on to our payroll (tax payers).


45 posted on 12/21/2009 1:32:01 PM PST by 724th (If the enemy is in range, so are you.)
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To: Army Air Corps

good call


46 posted on 12/21/2009 1:32:18 PM PST by Trust but Verify
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To: Sub-Driver
Ford offers buyouts to all UAW workers

Organized unions, once entrenched, are hard to get rid of. Once they're in, they're in for life. Even if Ford is able to buy out the union workers, the union bosses and union organizers will still be lurking, if not on the inside, then from the outside. Union labor at Ford, after the buyout, will be like a dormant virus in an animal host; it will be looking for the slightest opportunity to revive and become fully active and take over.
47 posted on 12/21/2009 1:32:30 PM PST by adorno
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To: Trust but Verify

They didn’t screw me by taking bailout cash. I rewarded their good behaviour. ;-)


48 posted on 12/21/2009 1:34:24 PM PST by Army Air Corps (Four fried chickens and a coke)
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To: Terabitten
"If Ford can dump UAW, they can leave Detroit for a right-to-work state."

Hell if they can destroy the UAW they've got a fighting shot at making Michigan a right-to-work state.

49 posted on 12/21/2009 1:36:17 PM PST by StAnDeliver (\)
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To: Domandred

Much the same happened with American Axle. I bought when it was 1.88/share. It is much more than that now.


50 posted on 12/21/2009 1:36:39 PM PST by Army Air Corps (Four fried chickens and a coke)
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