USA TODAY, September 15, 2006, Friday

Copyright 2006 Gannett Company, Inc.All Rights Reserved
USA TODAY
September 15, 2006 Friday FIRST EDITION
SECTION: MONEY; Pg. 1B

HEADLINE: Ford offers hourly workers buyouts; UAW's OK shows company is in 'dire financial straits'
BYLINE: Sharon Silke Carty
BODY:
DETROIT -- Ford Motor and the United Auto Workers union agreed Thursday to offer buyouts to all its 75,000 hourly workers, using enticements such as paid college education or payments of up to $140,000 to move workers off the payroll.
The announcement came as Ford prepared to detail today its updated restructuring plan, accelerating the effort it first announced in January. The automaker also said Thursday that Anne Stevens, one of the architects of the original cost-cutting strategy, is retiring. She has been an executive vice president and chief operating officer for the Americas.
This is the second time this year that the UAW has agreed to a broad buyout for its members. The first buyout, offered to all of General Motors' hourly workers, resulted in 35,000 people leaving the company. GM also offered payments up to $140,000.
UAW Vice President Bob King said the union agreed to the buyouts in an attempt to ensure job losses at Ford happened "on a voluntary basis."
"We remain deeply concerned about Ford's loss of market share and committed to working together," King said in a statement.
Ford, which lost $1.4 billion in the first half of the year, has said it is considering all of its options to turn around the company, including cutting white-collar jobs, closing plants at a faster rate than previously planned, buying out union-protected workers, selling off luxury brands such as Aston Martin or Jaguar, and even possibly taking the company private.
"It clearly is a first step in the UAW's recognition that Ford is in dire financial straits," said Jay Waks of law firm Kaye Scholer's employment and labor law practice. It's a step "that doesn't cost its membership anything, and, in fact, would help many long-service employees who see an opportunity to move on."
Ford's buyout plan offers eight different options for workers. Employees can retire early with a $35,000 payout, retire at 50 years old with full retirement benefits, or take a paid leave of absence until they reach retirement age. Workers who wish to just leave the company with no future benefits can get a $100,000 or $140,000 check, depending on their time with the company.
And in an attempt to entice younger workers, Ford also is offering three buyout packages that will either pay for a four-year education while providing 50% of the worker's salary, a two-year education with 70% pay, or a $100,000 payment that can be used for a family member's college education.
"This raises the sense of urgency, telling people that it's really important for the young and the old to take the buyout," said David Cole, chairman of the Center for Automotive Research.
Ford shares closed down 10 cents at $9.09.