Wednesday, March 19, 2008

From the "I don't want to go on the cart" file:
Ford Workers Saying No to Buyouts

What if you threw an early retirement party, and nobody came? That's the question being asked at Ford right now. The company just completed a force reduction buyout program, and apparently the results were below expectations. Whereas the 2006 buyout plan yielded 33,000 takers, the 2008 plan has so far netted fewer than 9,000 participants. This despite payouts of up to $140,000 per worker.

It seems that anyone who thought they had a future outside the company has already jumped ship. Many of the workers that Ford would like to see leave are handcuffed by a poor housing market. Property values in Greater Detroit have plunged amid record foreclosures. Many workers are upside down on their homes, and if they left, they would have to pay their lenders a big chunk of any lump sum they received from Ford.

Primary Source: Bloomberg News
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