1,700 workers to retire from Ford 0

Around 1,700 workers are set to retire from Ford after the company offered early retirement packages to staff in the United States. They are all set to leave on the 1st of June of this year.

$100,000 to retire

The early retirement package was made to all 41,000 of Ford’s factory workers across the United States. Many were offered very attractive offers to retire such as electricians and plumbers being offered $100,000 for the privilege. Production workers were offered just $50,000.

Too many tradesmen

The reason behind the move was that Ford believed that they had too many skilled tradesmen, with the number standing at 9,000.

Ford wants to add more jobs

The news may appear that Ford is looking to reduce their workforce and reduce costs. That is quite the contrary compared to reports stemming from America. Ford achieved great success last year in America with demand on the up. In order to cater for this new found demand, Ford are set to add to their workforce this year with numbers reaching thousands.

The outgoing retired workers will not be fully replaced according to Marcey Evans, the Ford Spokesman. Instead recent staffs that were made redundant will be drafted back in. Other slots will be filled by workers who will be paid less. A wage offer for some jobs will be $16 per hour which is half the wage of an experienced union worker.

Getting the unemployed back into work

Nevertheless this appears to be a great method of getting the unemployed, which stands at 8.3 million, back in work. Although wages are set to be lower, many would sacrifice that in order to be at the top.

Honda doing the same

Honda has confirmed that they too are offering employees voluntary retirement packages across North America.

Under the scheme, employees who are aged 59 and over and have also worked for more than 15 years at the company are eligible. An internal memo was sent out on March 9th. Honda employees are able to apply from April 23rd.The program is able to close at anytime in between whenever Honda may decide to do so.

Currently 5,600 workers are employed by Honda in the United States. It is estimated that a minimal amount of workers are bound to accept the deal.