Ford to extend buyout program at 14 more plants

Automaker offers buyouts to reduce its workforce in Michigan and Ohio

07/22/2008


The Wall Street Journal reports that Ford " will expand its plant-by-plant buyout program to 14 more facilities in Michigan and Ohio, as the struggling automaker looks to further reduce its payrolls." The "plant-by-plant buyout program started last month at two Kentucky and two Ohio manufacturing sites." The Journal explains, "Packages include a $15,000 tuition reimbursement for four years; a $100,000 scholarship for family members, and a flat payment of $100,000 with six months of basic health care."

The Associated Press notes, "After falling short in previous attempts to trim its hourly ranks through buyouts," the company "is trying again -- likely to make room for new hires making about half the wage of current workers." Earlier this year, the automaker "announced corporate-wide buyout and early retirement offers for U.S. hourly workers. But only 4,200 took the offers, far fewer than the company wanted."

According to Bloomberg , Ford, "which had about 54,000 U.S. factory workers at the start of 2008, told those employees in March that 'we must continue to downsize and simply will not have enough jobs for all of our current hourly workers.'" The company " began the 'targeted' offers last month."

The Detroit Free Press points out, "The moves are necessary as Ford tries to reduce its costs and preserve cash in the sour U.S. economy."

The recently announced " buyouts are voluntary , unlike the white-collar cuts under way," the Detroit News notes. "Ford is slashing about 15% of its North American salaried work force."





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me