Ford Motor Co. said that it expects 10,000 to 11,000 unionised hourly workers to accept early retirement and buyout offers by the end of the year. The number of workers who accept buyouts is a closely watched indicator of the success of Ford's turnaround and cost-cutting efforts. The workers are represented by the United Auto Workers union.
Through June 1 about 4,900 workers, including employees at parts subsidiary Automotive Components Holdings, have accepted buyouts, Ford spokesman Marcey Evans said. Ford is offering a range of buyout packages, including a $100,000 severance payment and a tuition reimbursement programme.
The automaker has said it plans to close 14 plants by 2012 and cut up to 30,000 blue-collar jobs to turn around its money-losing North American unit. Ford is offering the buyout and early retirement packages on a plant-by-plant basis based on approval by the local unions at the factories.