Business Week
Ford Motor Co. said 300 workers, or less than 1 percent of its U.S. union workforce, accepted a buyout offer for as much as $75,000.
The rate among the 41,000 U.S. hourly workers was “in line with expectations,” Mark Truby, a company spokesman, said today in an interview. The Dearborn, Michigan-based company attracted about 800 takers with similar offers in 2009, he said.
Ford is trying to further pare labor costs after reducing North American employment by 47 percent since Chief Executive Officer Alan Mulally joined the automaker in late 2006. The company today reported net income of $2.7 billion for last year, its first annual profit since 2005.
“Given the improvement in our business and the overall job market, we didn’t anticipate a large number of employees would take this offer,” Truby said. “We still have some employees on indefinite layoff and this enables us to move some of them back into positions.”
Ford sought further labor reductions after United Auto Workers members in November voted down givebacks such as a six- year ban on some strikes and a wage freeze for new hires until 2015. The Detroit-based union had granted similar terms to General Motors Co. and Chrysler Group LLC, which reorganized in government-aided bankruptcies.
Under Ford’s latest offer, extended last month, workers with 30 years on the job or at least age 55 were eligible for as much as $40,000 in cash and a $25,000 voucher for new Ford vehicle or an additional $20,000 payment.
Those younger than 55 with at least one year of service could get $50,000 and the choice of a $25,000 vehicle voucher or $20,000 more in cash, said Marcey Evans, a Ford spokeswoman.
Those who accepted the offer will begin leaving the company Feb. 1, with all expected to have departed by March 1, she said.
Christine Moroski, a UAW spokeswoman, didn’t immediately respond to a call for a comment.
Ford fell 14 cents to $11.41 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 14.1 percent this year after increasing more than fourfold last year.
The rate among the 41,000 U.S. hourly workers was “in line with expectations,” Mark Truby, a company spokesman, said today in an interview. The Dearborn, Michigan-based company attracted about 800 takers with similar offers in 2009, he said.
Ford is trying to further pare labor costs after reducing North American employment by 47 percent since Chief Executive Officer Alan Mulally joined the automaker in late 2006. The company today reported net income of $2.7 billion for last year, its first annual profit since 2005.
“Given the improvement in our business and the overall job market, we didn’t anticipate a large number of employees would take this offer,” Truby said. “We still have some employees on indefinite layoff and this enables us to move some of them back into positions.”
Ford sought further labor reductions after United Auto Workers members in November voted down givebacks such as a six- year ban on some strikes and a wage freeze for new hires until 2015. The Detroit-based union had granted similar terms to General Motors Co. and Chrysler Group LLC, which reorganized in government-aided bankruptcies.
Under Ford’s latest offer, extended last month, workers with 30 years on the job or at least age 55 were eligible for as much as $40,000 in cash and a $25,000 voucher for new Ford vehicle or an additional $20,000 payment.
Those younger than 55 with at least one year of service could get $50,000 and the choice of a $25,000 vehicle voucher or $20,000 more in cash, said Marcey Evans, a Ford spokeswoman.
Those who accepted the offer will begin leaving the company Feb. 1, with all expected to have departed by March 1, she said.
Christine Moroski, a UAW spokeswoman, didn’t immediately respond to a call for a comment.
Ford fell 14 cents to $11.41 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 14.1 percent this year after increasing more than fourfold last year.
No comments:
Post a Comment