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Wednesday, December 23, 2009

Ford makes buyout offer to workers, including 200 at St. Paul plant

Minneapolis / St. Paul Business Journal

Ford Motor Co. is offering a buyout to all of its 41,000 hourly workers in the United States, according to media reports.

Ford officials wouldn’t say how many of those workers might accept the offer, which includes $50,000 plus the choice of either a $25,000 voucher to buy a car or an extra $20,000 in cash. Workers need to have worked at least a year for the automaker to qualify.

Out 760 employees at Ford’s Ranger pickup truck plant in St. Paul, 200 would be able to take the buyout, a United Auto Workers official at the factory told the St. Paul Pioneer Press.

The buyout offer comes after union workers across the company rejected a cost-cutting agreement. The majority of workers at the St. Paul plant had approved the deal.

Dearborn, Mich.-based Ford (NYSE: F) has shown itself to be more financial stable than the other two major U.S. automakers, Chyrsler and General Motors, avoiding bankruptcy and government bailout money. But company officials still say there are too many workers.

When Ford made a similar buyout offer earlier this year, only 1,000 workers took it. | (612) 288-2107