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What is Ford Motor Co. hourly Worker Buyout packages and early retirement offers!
By Amarendra Bhushan for CEOWORLD Magazine Updated:May 25, 2009
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The Ford Motor Company has decided to give its hourly workers another five weeks to make a decision on payment terms.
The workers will need to decide whether to accept the company’s buyout and early retirement offer.
The company extended the date last Friday, when the company decided to give employees more time to assess the impact of the deal, due to the current economic climate.
It is believed some of the 42,000 hourly workers have already accepted the Ford offer.
- Ford and the UAW decided earlier today to extend the sign-up deadline to June 26
- The previous deadline was today, May 22.
- A lump-sum payment of up to $40,000 and a $25,000 vehicle voucher for retirement-eligible employees.
- A lump-sum payment of $50,000 and a $25,000 vehicle voucher for other employees.
- Or a $15,000 annual tuition payment, health care continuation and 50 percent of base wages for two years.
- The packages were offered to nearly all of Ford’s 42,000 hourly workers starting April 1.
- Ford Extends Buyout Until June 26.
- Retirement-eligible skilled trade workers can get up to $40,000 to leave the company.
- Retirement-eligible production workers would get $20,000.
- The company is offering $50,000 in buyouts for those not eligible to retire who have at least one year of seniority.
- Most would get a $25,000 voucher to buy a car or a $20,000 cash payment as well.
- Other concessions included suspension of cost-of-living pay raises, lump-sum performance bonuses and end-of-the-year bonuses.
- The union also agreed to take as equity 50 percent of the payments that Ford is required to make into a union-run trust fund that will take over retiree health care expenses starting next year.
- New agreement reduces annual labor costs by more than $500 million.
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