Ford offers redundancy to all US employees
Andrew Clark in New York
Friday September 15, 2006 The Guardian
The struggling motor manufacturer Ford has struck a deal with unions to offer voluntary redundancy packages to all of its 75,000 American employees in a dramatic acceleration of efforts to get losses under control.
In proposals to be announced by the company's new chief executive, Alan Mulally, today Ford aims to cut 40-45% of its US blue-collar workforce costs and 30% of the white-collar wage bill.
Leaked reports yesterday suggested that plunging sales, together with the one-off cost of the reorganisation, could push Ford $9bn (£5bn) into the red this year.
The company is struggling to cope with high petrol prices, which have deterred customers from buying the pickup trucks and sports utility vehicles which once accounted for most of its profit. It has found it difficult to compete with Asian manufacturers in offering smaller vehicles. About 14 factories will close and, while the original timescale was for a gradual wind-down ending in 2012, the new proposals will involve plants shutting as early as 2008 and 2009.
The United Auto Workers union disclosed that under a new agreement with Ford, staff would be offered between $35,000 and $140,000 each to leave the company.
The union's president, Ron Gettelfinger, said: "Once again, our members are stepping up to make hard choices in difficult circumstances. Now its Ford Motor Company's responsibility to lead this company in a positive direction."
A day before the long awaited announcement, Ford said two of its key executives were leaving. Anne Stevens, its chief operating officer for the Americas and US manufacturing boss David Szczupak, are to "retire".
Industry watchers suggested that the two might have decided to move on as a result of the appointment of Mr Mulally, a former Boeing boss who is renowned for his turnaround expertise, to tackle the firm's crisis.
http://business.guardian.co.uk/story/0,,1873112,00.html
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