Last Updated: February 21. 2007 1:00AM

Ford misses some buyout goals

Salaried employees in departments that didn't meet reduction levels face involuntary layoffs.

Bryce G. Hoffman / The Detroit News

DEARBORN -- Some Ford Motor Co. salaried employees will be getting pink slips after the company failed to meet its voluntary buyout targets in some departments, two people familiar with the situation said Tuesday.

Each Ford department in the United States was given a headcount reduction goal in an effort to eliminate 10,000 white-collar jobs by 2008. Some met their goals. One or two departments had too many workers sign up and were forced to rescind some buyout offers. But other departments failed to convince enough employees to leave voluntarily.

Ford began offering buyouts and early retirement incentives to white-collar workers last fall. Those who received offers had until Monday to sign up, but they also have a week to change their minds. Because of this, Ford will not know the final tally for at least a week.

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"It's still too early in the process for us to know if involuntary separations will be necessary and to what extent," said Ford spokeswoman Marcey Evans.

However, other sources said it was already clear that some departments missed their targets. And some workers said supervisors have already warned them involuntary layoffs will be coming.

This latest round of salaried job cuts comes a year after Ford eliminated approximately 4,000 white-collar positions, largely through involuntary layoffs. The company had hoped to meet its new headcount reduction goal through the voluntary separation program, but said it would resort to involuntary layoffs if necessary.

The automaker also warned workers that it reserved the right to rescind buyout offers if too many signed up in their department. Not all workers received buyout or early retirement offers. Some key employees received substantial retention bonuses for agreeing to stay. Most of those who signed up for the last round of buyouts will leave the company next Wednesday.

All of this made for an uneasy mood at Ford's world headquarters on Tuesday. While some departments held going-away parties, others braced for layoffs or increased workloads.

"Black Tuesday" was the appellation some workers used.

In one product development office, where too many workers signed up for buyouts, those who had theirs rescinded worried that there would be retaliations. Others worried about how they would do the same amount of work with fewer workers.

"We're a little bit worried about whether there will be enough people," said one employee, who did not wish to be identified.

Others worried about whether they would be able to keep their jobs after hearing there were too few takers in their division.

One diversion among Ford's information technology staff was an anonymous protest song "The Way Forward," making the rounds online. The song, a parody of the Beatles classic "Yesterday," bemoaned the pending layoffs and blasted senior management for accepting retention bonuses:

Yesterday/Unemployment seemed so far away/Now it looks as though it's here to stay/I was employed, just yesterday

Suddenly/My boss said they had no use for me/I walked out with Ford security/My Ford career stopped suddenly

Yesterday/I had Ford stock in my IRA/Now I watch its value fade away/I'm unemployed since yesterday

But not everyone took such a gloomy view of the situation. Some outgoing workers said their colleagues were relieved to hear layoffs were unlikely in their areas.

"Everybody's happy about the buyouts," said Greg Davis, who signed up for one of the early retirement offers and is getting ready to trade in his Ford ID badge for a private pilot's license and the tiller of sailboat. "We're just hoping the company will do well in the future."

You can reach Bryce Hoffman at (313) 222-2443 or bhoffman@detnews.com.

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More information

    Ford offers

    Ford offered three separation packages for salaried workers:

  • Select retirement plan: Company adds three years to employee's age and length of service for pension calculations.
  • Salaried retirement window: Employees retire with regular pension benefits, plus a one-time payment equal to as much as 13 months of pay.
  • Voluntary salaried separation program: Younger workers receive up to 13 months of pay to leave the company and still receive any vested pension benefits when eligible.

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