Business

Ford offers a voluntary purchase program for 1,000 American employees

Ford Motor Company world headquarters, Dearborn, Michigan on January 19, 2021.

Aaron J. Thornton | Getty Images

Ford Motor seeks to buy 1,000 salaried employees across the country, using a variety of voluntary indemnity packages, based on seniority, to encourage employees to resign.

Ford first warned employees of the takeover program last month, a company spokesman told CNBC.

“We are reshaping our workforce to provide the critical skills and positions needed to transform our business,” the spokesman said in an email to CNBC. “Staff adjustments, including hiring and separations, are part of a multi-year process to align talents with our cycle and service plan and to revolve around our automotive operations.”

Buyouts begin with a month of compensation and benefits for Ford employees for five years or less. The biggest incentives apply to employees over 20 years of age: in addition to six months of compensation and benefits, they also receive replacement assistance for the same period.

“The voluntary separation program provides a fortuitous cash payment and a certain continuation of benefits for eligible employees who elect, and are approved, to resign from the Company in the program,” the spokesman said.

In response to a shortage of semiconductor chips, Ford reduced vehicle production in North America in June. The automaker has raised or cut production in eight plants, temporarily laid off workers, and expects to lose about 50% of its vehicle production in the second quarter.


Source link

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button