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*KILLER74Z28* · 09-13-2006, 08:22 PM

Auto news
UAW prepares to fight further cuts from Ford

September 13, 2006

BY SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER

As Ford Motor Co.'s Board of Directors meets today and Thursday to consider a historic rescue plan for the 103-year-old automaker, UAW members are bracing for job cuts that could total 40,000 in North America

• As early as Thursday, Ford leaders could announce the details of the retooled Way Forward restructuring plan.
As Ford Motor Co.'s Board of Directors meets today and Thursday to consider a historic rescue plan for the 103-year-old automaker, UAW members are bracing for job cuts that could total 40,000 in North America.

Ford could roll out an announcement as soon as Thursday. But people with knowledge of Ford's plan have outlined some of the moves that are on the table:

• As many as 6,000 more job cuts than originally planned.

• No brands will be killed, though some models may be eliminated and others introduced.

• More plants could be closed.

• Dealerships will be consolidated in some manner.

• The company does not plan to sell Ford Credit.

On Tuesday, hundreds of UAW leaders from Ford plants, mostly middle-aged men in blue jeans and polo shirts with their names stitched on the breast, met in downtown Detroit to consider the company's deteriorating finances.

It was a gray, drizzly day, and the mood wasn't much better in the closed-door meeting at the Renaissance Center's Ambassador Ballroom, where the scene was set for the union to consider concessions that might help the automaker.

"It's sad in there," said one union leader who took a break on a bench by the Detroit River. He did not want to be identified for fear of retribution.

Union representatives attending the meeting said they had not been briefed on any concrete concessions being sought by Ford, nor had they heard specifics on a nationwide buyout program similar to the one offered earlier by General Motors Corp.

The union sessions are slated to continue through Thursday -- coinciding with meetings of the Ford directors, who are examining a retooled Way Forward restructuring plan that could make or break Ford's future.

Board committees are slated to meet today, with the full board to meet Thursday. Alan Mulally, appointed president and chief executive officer of Ford last week, will attend his first meetings as a director.

The board is said to be considering crucial aspects of Ford's future. The foremost issues are how many jobs the company needs to cut, how fast and by what means, such as buyouts and severance packages. The board also will examine what plants to close and when, and how many dealerships Ford really needs as its car and truck sales continue falling.

The automaker is considering widening its job cuts to 30% of its North American workforce, to about 40,000, and may try to execute most of those cuts this year, people familiar with the plan told the Free Press. That's about 6,000 more jobs than the 34,000 announced earlier this year; it's unclear what percentage of those could be targeted for salaried or hourly employees.

Cuts for hourly workers, who are protected by a UAW contract, could take longer to execute.

Many workers are expecting a nationwide buyout program and are eager to leave Ford voluntarily if the deal is sweet enough. GM quickly cut 35,000 hourly workers from its payroll with its buyout program.

Ford has been taking a plant-by-plant approach. About 6,500 workers have accepted buyouts at 15 Ford plants this year.

UAW President Ron Gettel-finger told the Reuters news service on Tuesday that Ford had not briefed him on the restructuring plan, and he was not certain whether Ford's update would include new cuts or just an acceleration of measures previously announced.

"I can tell you we won't like it, and we'll be debating it with them," Gettelfinger said.

Ford's initial Way Forward plan, introduced in January, spreads up to 34,000 job cuts -- about 25% of Ford's workforce in North America -- and 14 plant closures over seven years. But it was criticized for lacking detail and urgency. For example, it failed to identify half the plants slated for closure and to move as fast to cut jobs as GM's plan did.

High fuel prices and plummeting truck sales, especially of the mainstay F-Series, quickly magnified the plan's flaws. Ford posted a half-year loss of $1.4 billion, largely because of a $4-billion loss in the North American division that was only partially offset by gains elsewhere.

Six months after announcing the Way Forward, Ford Chairman Bill Ford conceded July 20, "We need to go farther and faster."

Since then, the problems have accelerated.

The company has lost 1.1% of the U.S. market this year compared with the same eight months of 2005, including 2.3% in August alone compared with the same month a year ago.

Overall, Ford sales are down 9.9% this year. But sales of trucks are down 17% -- a breathtaking decline for truck-dependent Ford. A planned production cut of 21% in the last three months of the year also foretells expected sales declines and profit erosion.

Ford will negotiate a new national contract with the UAW next year, but the company hasn't been waiting until then to extract concessions. Ford has been asking the UAW to reopen contracts at some North American plants to make them more efficient.

Ford and UAW leaders have crafted 20 "competitive operating agreements" this year to adjust work rules in a way that allows more teamwork and cuts absenteeism. Workers represented by UAW Local 600 in Dearborn, which covers the Ford Rouge Complex, recently passed such a deal.

"We want them to be as productive as possible," Joe Hinrichs, vice president for North American vehicle operations, said in an interview Friday. Hinrichs oversees Ford's 19 assembly plants and eight stamping and tool-and-die plants in Canada, Mexico and the United States. Ford and the UAW "have made a lot of progress" this year, he said.

Meanwhile, buyouts seem to be the main subject on the minds of workers and investors. They have not liked Ford's incremental plan or its results.

Brokerages complain the company hasn't cut labor costs fast enough, and workers complain they want a sweeping deal. Older workers are eager to retire, and younger ones who want job security are eager to see older ones get their chance.

Several workers said even though they want buyouts, they didn't take ones already offered because they expect a better deal to come in a national package. GM offered up to $140,000, and many Ford workers are holding out for that type of deal.

Ford is offering three early retirement plans, a tuition-assistance program and another that offers a $100,000 lump sum to forgo all benefits except accrued pension.

"It would have to be reasonable," said Raymond Lipa, 62, a millwright at the Rouge Complex who has worked at Ford for 44 years and doesn't think the existing programs are sufficient.

Mike Baehr, 60, of Trenton said he would wait for a buyout that makes sense. The Dearborn Stamping employee has worked at Ford for 42 years.

"Other parts of the union have negotiated higher buyouts" than what Ford has offered, he said.

Considering Ford's situation, though, Baehr said many workers might consider leaving with a lesser deal than the one GM offered.

"I'd have to look at it," he said. "I don't think we have a lot of choice. ... I never thought it would come to this."

Contact SARAH A. WEBSTER at swebster@freepress.com or 313-222-5394.

09-13-2006, 08:22 PM	#13
KILLER74Z28 MOD SQUAD Drives: 2G1FT1EW9A9100666 Join Date: Aug 2006 Location: West Michigan Posts: 5,782 View My Garage	Auto news UAW prepares to fight further cuts from Ford September 13, 2006 BY SARAH A. WEBSTER FREE PRESS BUSINESS WRITER As Ford Motor Co.'s Board of Directors meets today and Thursday to consider a historic rescue plan for the 103-year-old automaker, UAW members are bracing for job cuts that could total 40,000 in North America • As early as Thursday, Ford leaders could announce the details of the retooled Way Forward restructuring plan. As Ford Motor Co.'s Board of Directors meets today and Thursday to consider a historic rescue plan for the 103-year-old automaker, UAW members are bracing for job cuts that could total 40,000 in North America. Ford could roll out an announcement as soon as Thursday. But people with knowledge of Ford's plan have outlined some of the moves that are on the table: • As many as 6,000 more job cuts than originally planned. • No brands will be killed, though some models may be eliminated and others introduced. • More plants could be closed. • Dealerships will be consolidated in some manner. • The company does not plan to sell Ford Credit. On Tuesday, hundreds of UAW leaders from Ford plants, mostly middle-aged men in blue jeans and polo shirts with their names stitched on the breast, met in downtown Detroit to consider the company's deteriorating finances. It was a gray, drizzly day, and the mood wasn't much better in the closed-door meeting at the Renaissance Center's Ambassador Ballroom, where the scene was set for the union to consider concessions that might help the automaker. "It's sad in there," said one union leader who took a break on a bench by the Detroit River. He did not want to be identified for fear of retribution. Union representatives attending the meeting said they had not been briefed on any concrete concessions being sought by Ford, nor had they heard specifics on a nationwide buyout program similar to the one offered earlier by General Motors Corp. The union sessions are slated to continue through Thursday -- coinciding with meetings of the Ford directors, who are examining a retooled Way Forward restructuring plan that could make or break Ford's future. Board committees are slated to meet today, with the full board to meet Thursday. Alan Mulally, appointed president and chief executive officer of Ford last week, will attend his first meetings as a director. The board is said to be considering crucial aspects of Ford's future. The foremost issues are how many jobs the company needs to cut, how fast and by what means, such as buyouts and severance packages. The board also will examine what plants to close and when, and how many dealerships Ford really needs as its car and truck sales continue falling. The automaker is considering widening its job cuts to 30% of its North American workforce, to about 40,000, and may try to execute most of those cuts this year, people familiar with the plan told the Free Press. That's about 6,000 more jobs than the 34,000 announced earlier this year; it's unclear what percentage of those could be targeted for salaried or hourly employees. Cuts for hourly workers, who are protected by a UAW contract, could take longer to execute. Many workers are expecting a nationwide buyout program and are eager to leave Ford voluntarily if the deal is sweet enough. GM quickly cut 35,000 hourly workers from its payroll with its buyout program. Ford has been taking a plant-by-plant approach. About 6,500 workers have accepted buyouts at 15 Ford plants this year. UAW President Ron Gettel-finger told the Reuters news service on Tuesday that Ford had not briefed him on the restructuring plan, and he was not certain whether Ford's update would include new cuts or just an acceleration of measures previously announced. "I can tell you we won't like it, and we'll be debating it with them," Gettelfinger said. Ford's initial Way Forward plan, introduced in January, spreads up to 34,000 job cuts -- about 25% of Ford's workforce in North America -- and 14 plant closures over seven years. But it was criticized for lacking detail and urgency. For example, it failed to identify half the plants slated for closure and to move as fast to cut jobs as GM's plan did. High fuel prices and plummeting truck sales, especially of the mainstay F-Series, quickly magnified the plan's flaws. Ford posted a half-year loss of $1.4 billion, largely because of a $4-billion loss in the North American division that was only partially offset by gains elsewhere. Six months after announcing the Way Forward, Ford Chairman Bill Ford conceded July 20, "We need to go farther and faster." Since then, the problems have accelerated. The company has lost 1.1% of the U.S. market this year compared with the same eight months of 2005, including 2.3% in August alone compared with the same month a year ago. Overall, Ford sales are down 9.9% this year. But sales of trucks are down 17% -- a breathtaking decline for truck-dependent Ford. A planned production cut of 21% in the last three months of the year also foretells expected sales declines and profit erosion. Ford will negotiate a new national contract with the UAW next year, but the company hasn't been waiting until then to extract concessions. Ford has been asking the UAW to reopen contracts at some North American plants to make them more efficient. Ford and UAW leaders have crafted 20 "competitive operating agreements" this year to adjust work rules in a way that allows more teamwork and cuts absenteeism. Workers represented by UAW Local 600 in Dearborn, which covers the Ford Rouge Complex, recently passed such a deal. "We want them to be as productive as possible," Joe Hinrichs, vice president for North American vehicle operations, said in an interview Friday. Hinrichs oversees Ford's 19 assembly plants and eight stamping and tool-and-die plants in Canada, Mexico and the United States. Ford and the UAW "have made a lot of progress" this year, he said. Meanwhile, buyouts seem to be the main subject on the minds of workers and investors. They have not liked Ford's incremental plan or its results. Brokerages complain the company hasn't cut labor costs fast enough, and workers complain they want a sweeping deal. Older workers are eager to retire, and younger ones who want job security are eager to see older ones get their chance. Several workers said even though they want buyouts, they didn't take ones already offered because they expect a better deal to come in a national package. GM offered up to $140,000, and many Ford workers are holding out for that type of deal. Ford is offering three early retirement plans, a tuition-assistance program and another that offers a $100,000 lump sum to forgo all benefits except accrued pension. "It would have to be reasonable," said Raymond Lipa, 62, a millwright at the Rouge Complex who has worked at Ford for 44 years and doesn't think the existing programs are sufficient. Mike Baehr, 60, of Trenton said he would wait for a buyout that makes sense. The Dearborn Stamping employee has worked at Ford for 42 years. "Other parts of the union have negotiated higher buyouts" than what Ford has offered, he said. Considering Ford's situation, though, Baehr said many workers might consider leaving with a lesser deal than the one GM offered. "I'd have to look at it," he said. "I don't think we have a lot of choice. ... I never thought it would come to this." Contact SARAH A. WEBSTER at swebster@freepress.com or 313-222-5394.