Ford offers up more buyouts to hourly workers
Ford is hoping to continue the reduction of both the number of vehicles the automaker will produce and, correspondingly, its hourly blue-collar workforce. In order to make good with the UAW, the same buyout packages available last year are being extended to these unionized workers. The packages have not changed since they were offered to Ford employees in Kentucky in June of 2007. These latest buyout announcements involve workers from plants in either Michigan or Ohio, a further blow to the already weakened economies in these two auto-heavy states. Earlier this year, Ford said it was hoping for another 9,000 hourly workers to take buyouts. Between 2006 and 2007, a total of 33,600 union workers accepted either buyout packages or early retirement packages, a huge percentage of Ford's total employees. At this rate, we wonder how many UAW workers Ford will have left after it's all said and done.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
mike 8:48AM (7/22/2008)
I think Bill Ford did a great job.......he is also good looking..especialy that lower lip of his.
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geo.stewart 8:49AM (7/22/2008)
At this rate, we wonder how many UAW workers Ford will have left after it's all said and done.
Hopefully, a small enough percentage for Ford to break the union
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mike 8:56AM (7/22/2008)
Like that will help. Ford is dying Because they make crappy cars…that’s it, simply look at the line up and compare it to competition, Focus can’t touch Civic or Corolla, Fusion can’t touch CamCord or Hundai. No one wants SUVs and Pick Ups now……………….bottom line Ford doesn’t offer anything that a consumer may pay a premium for. Focus’ may fly…….but at a very low profit margin and as I said no one wants trucks now. This is simply the case of mismanagement by the camel (Billy Boy) and the Aviator (Moooolaly)
Blake 10:53AM (7/22/2008)
@Mike: Fusion and Focus have proven well in satisfying owners. As with the Escape.
Randy 12:27PM (7/22/2008)
Actually there's more than Focus and Fusion.
Focus - Sales Booming
Fusion - Sales up 10%
F-Series - Sill Destroys the Competition
E Series - Still #1
Ranger - Still #1
Explorer - Down
Flex - Huge Increases
Mike, you were saying?
I really think people need to stop being FANBOYS and FANGIRLS and start having an intelligent dialog that doesn't require people to rationalize with people that simply infer (lie) about details just beca
Randy 12:28PM (7/22/2008)
Actually there's more than Focus and Fusion.
Focus - Sales Booming
Fusion - Sales up 10%
F-Series - Sill Destroys the Competition
E Series - Still #1
Ranger - Still #1
Explorer - Down
Flex - Huge Increases
Mike, you were saying?
I really think people need to stop being FANBOYS and FANGIRLS and start having an intelligent dialog that doesn't require people to rationalize with people that simply infer (lie) about details just because they like another company better!
Steve_S 8:55AM (7/22/2008)
Isn't that pretty much the point. Out with the higher paid workers and in with the lower paid workers?
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mike 9:00AM (7/22/2008)
But you see there’s an issue with that…lower paid workers will not do the same quality of work, plus they are NEW. Any time you hire a newbie the quality goes down……….in any business, be it finance or manufacturing.
Also lower wages will drive the real talented people to industries where they get paid more……..many say ohhhhh manufacturing is a simple job, but bottom line is that it also requires experience, training and certain employees are better then others.
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geo.stewart 9:26AM (7/22/2008)
you dont think 1/2 of those hired are union workers who took the payout?
This allows Ford to take a 1-time hit, unattach the union, and weed out the crap and hire back true performers.
All in all, this will probably help OH and MI economies rather than hurt them
baffledu2 10:08AM (7/22/2008)
geo stewart
"All in all, this will probably help OH and MI economies rather than hurt them"
Lets see ... far fewer citizens of OH & MI employed @ much lower wages with fewer benefits will help the economies. Tax base eroding ... infrastructure deteriorating etc.
Yea the picture is just rosy !!!
Jobu37 10:18AM (7/22/2008)
Quality is not correlated to the wage level of the employee. It is a direct result of processes being in place that deliver higher quality. Until recent years Union work rules worked against easy implementation of the processes necessary to achieve higher quality output. A few years ago the Union saw the writing on the wall and allowed a gradual easing of rules that blocked full implementation of TQM processes. They did this to try and insure that they would still have an employee base paying dues to them. The end results, especially for Ford, have been dramatic. In short, a guy making $14 per hour can be plugged into the process just as easily as a guy making $28 per hour. That newby who feels fortunate to have that job doesn't bring the elitist attitude that is present a small portion of the current higher paid workforce. And of course burnout is less prevalent in a new workforce. If anything, the quality should increase with the introduction of a younger more enthusiastic workforce. Not to take anything away from the current Ford workforce. They have done more with a broken system than either of their domestic counterparts has ever dreamed of. These are just the realities of the times. If Ford or any other global company wants to remain competitive they will have pay their employees what the job is worth or they will cease to exist.
geo.stewart 10:49AM (7/22/2008)
baffled,
lets see, sizeable economic payouts to large # of people to go and get training for another job where part of their paychecks dont go to leechlike union officials. OR that they get a sizeable payout to dump the union and go back to work at the same place. only the government, with its 20 yr pensions and folks working on a second pension, have it more screwed up
Jay 9:33AM (7/22/2008)
What Ford really NEEDS to do, is bring their European models to the U.S. market. Did I mention their European cars are not only better looking but also smaller, get better mpg. they are very popular over the pond, and with the market the way it is right now I'm sure they will be popular here. Ford needs to make their trucks more fuel efficient, which they ARE trying to do ( and yes people still NEED trucks for work contrary to what everyone thinks) Ford needs more hybrids and needs to come out with a model on par with or better than the prius and similar vehicles.
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Avinash machado 11:27AM (7/22/2008)
Well Ford will be selling the Fiesta in the US shortly.
car nut 11:26AM (7/22/2008)
If you leave the company you do not get to come back!!!!
There is a reason they are giving buy outs. They don't need that many workers..
$70,000 for a check to leave the company early.. Now tax that check by like 40% (what like some 25 to 30,000 goes to uncle sam), and then realize that the next job you have is going to be paying alot less. That money doesn't go to far.. Especialy if you have a house payment, car payment etc.
You tend to see why soo many of them are moving out of the state.. AT 14$ an hour down south that hourly rate goes alot farther than up here. Taxes, bad roads.. I know of alot of people that have taken the buyouts and have packed up and left the state. So this is only going to hurt the economy here in Mi even more. And not to mention the new workers when they do finally hire.. Will be with less health care benefits. So now the doctors and hospitals will suffer a new wave economic hardship.
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the vegas style guy 1:34PM (7/22/2008)
I'm always at the anti-union types. They are always the same ones who say the country is going to hell in a handbasket but , yet, have no problem with throwing American workers under the bus. I don't think unions are perfect , but, if corporations had their way we'd be Myanmar. They would enslave us and sell our lo priced labor to....oh, wait, our economy drives the world. Where will they sell their crap if we don't have jobs? China? India? How very patriotic. Why exactly is it that we NEED globalization again? If I remember correctly, when I was a little kid America made products in America which were sold to Americans. If we wanted foreign products we paid more for them. Easy. What happened? Oh, yeah, corporate greed. Walmart. Wall street. Do we really need 5packs of Hanes t-shirts made in Communist Vietnam for $3.00? We wouldn't if we still had our well paid jobs and our corporate CEOs weren't making $100,00,000+/yr.
mike 1:09PM (7/22/2008)
@Jobu37 Dude you are way off, it has nothing to do with newbie’s attitude, yes its great if they have CAN DO attitude, but experience matters, A LOT.
Think about if who does a better job you who has 10 year experience doing it or a much brighter and more enthusiastic person who has only one year under his belt. Yes eventually he will start doing a better job but for NOW you are much better than him.
Also no way in HECK will Ford bring the same talent at $14 as they had at $28, dude $14 is pennies. If you have some experience in manufacturing and if you are a real go getter you may as well go into manufacturing where they pay more, military manufacturing, planes, tanks, whatever else, plus you can find many service jobs at higher rates.
Plus, it will take some time for the newbies to become pros so in the short term Fords quality will go down.
Look I know this is Autoblog and it is cool to call UAW bums, but a middle aged guy who knows all the ins and outs of building an engine can not be easily replaced to begin with………………….. Ford wants to replace that guy with $14 an hour.
@Randy
‘’’Actually there's more than Focus and Fusion.
Focus - Sales Booming
Fusion - Sales up 10%
F-Series - Sill Destroys the Competition
E Series - Still #1
Ranger - Still #1
Explorer - Down
Flex - Huge Increases
Mike, you were saying?
I really think people need to stop being FANBOYS and FANGIRLS and start having an intelligent dialog that doesn't require people to rationalize with people that simply infer (lie) about details just beca’’’’
Yes Focus is booming, but it is a low margin vehicle, Ford relies on Explorers to make money. Fusion sales may be up……..but something is down, you are assuming that for every 100 additional Fusions sold 100 NON Ford cars are traded in. People may be buying Fusions but they are trading in other Fords.
According to you everything is Rosy at Ford but the Explorer blemish, Ford is close to bankruptcy for 5 years now, that goes to show you that Explorers are a HUGE HUGE part of making money. And Focuses are not replacing those Explorers.
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Jay 3:06PM (7/22/2008)
Focuses CAN replace those explorers though. Exploders were popular in the hey-day of SUV's, but with peak oil, that time is long gone. They now need to bring pride and quality back to the brand and aim for the younger age groups, they can do that by making focuses and other sedans get better MPG, more hyrbids, or heck even create something brand new. When was the last time you heard of ford doing something revolutionary? GM is planning electric charging stations, creating the Volt, etc. Ford is...releasing a new F150? nope even their number one selling truck has been delayed. It also wouldn't hurt their cause if they made more reliable vehicles. Quality and better mpg with lower emissions, that's how you rebuild your brands reputation and that's how you appeal to the younger generations.
len simpson 2:00PM (7/22/2008)
IAM killed the airlines , UAW the car builders
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Jay 3:07PM (7/22/2008)
Focuses CAN replace those explorers though. Exploders were popular in the hey-day of SUV's, but with peak oil, that time is long gone. They now need to bring pride and quality back to the brand and aim for the younger age groups, they can do that by making focuses and other sedans get better MPG, more hyrbids, or heck even create something brand new. When was the last time you heard of ford doing something revolutionary? GM is planning electric charging stations, creating the Volt, etc. Ford is...releasing a new F150? nope even their numberone selling truck has been delayed. It also wouldn't hurt their cause
if they made more reliable vehicles. Quality and better mpg with lower emissions, that's how you rebuild your brands reputation and that's how you appeal to the younger generations.
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