Ford Motor Company offered a buyout to its 41,000 United Auto Workers yesterday after the union overwhelmingly rejected a proposed cost-cutting deal in November.
Ford Motor Co (F.N) said on 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 this year.
About 1,000 workers took Ford’s earlier offer in July. While Ford was the only U.S. automaker to have avoided bankruptcy in the past year, its relative success has complicated efforts to win concessions from its major union. Ford workers have until late January to accept the offer, which includes 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.
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…Last month, UAW workers overwhelmingly rejected a proposed cost-cutting deal for Ford that would have changed the terms of a labor contract which runs until 2011.