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Ford Misses Voluntary Buyout Targets
by Glady Reign
The pace is getting too fast and the unfolding of events is still blurry. The confusion could not be cleared even by a swift Volvo wiper blade working in your windshield. Today and in the past few years, ghetto surrounds the Ford Motor Corp. as well as its employees whose departments did not meet reduction levels. Ford will let them face involuntary layoffs.
The affected salaried employees will be offered three separation packages. First, the employee could opt for a retirement plan. The pension calculations is based the employee's age and length of service plus three years. The second package, dubbed as the salaried retirement window, allows employees to retire with regular pension benefits plus a one-time payment equivalent to approximately 13 months of pay. The last separation package is the voluntary salaried separation program. In this package, younger workers will be receiving up to 13 months of pay to leave the company. If eligible, the employee could still receive any vested pension benefits.
To determine the number of affected employees, the automaker ordered a headcount for each department in the United States. The headcount reduction goal is an attempt to slash 10,000 white-collar jobs by next year. Headcounts could show that there are some that have already met the goals. Upon the other hand, one or two departments may have too many employees who signed up hence the need for rescission of some buyout offers. Moreover, it is obvious that other departments failed to persuade enough workers to leave voluntarily.
The automaker began offering buyouts and early retirement incentives to white-collar workers last fall. Those who are given offers have until Monday to sign up. This would further delay the tallying for about a week. "It's still too early in the process for us to know if involuntary separations will be necessary and to what extent," said Ford spokeswoman Marcey Evans.
Experts in the industry said that missed targets on some department are quite apparent. As a fact, some of the workers have been warned by their supervisors about possible involuntary layoffs. It can be recalled that the automaker has already eliminated about 4,000 white-collar positions and largely have been made through involuntary layoffs.
Ford said it is hoping to meet its new headcount reduction goal through the voluntary separation program. However, it added that it would resort to involuntary layoffs if necessary. Ford also warned workers that it reserved the right to rescind buyout offers if too many signed up in their department.
Not all Ford workers were given buyout or early retirement offers; some key employees are given substantial retention bonuses for agreeing to stay. Most of those who have signed up for the last round of Ford's buyouts will leave the company on Wednesday. "We're a little bit worried about whether there will be enough people," said one employee, who did not wish to be identified.
But not everyone took the situation sullenly. Some were employees were relieved when they heard that layoffs were unlikely in their departments. "Everybody's happy about the buyouts," said Greg Davis, who signed up for one of the early retirement offers. "We're just hoping the company will do well in the future." Davis is now getting ready to trade in his Ford ID badge for a private pilot's license and the tiller of sailboat.
About the Author
Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.
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