Ford cuts salaried jobs, plans plant closures

September 15, 2006 (WLS) -- Investors weren't impressed with Ford Motor Company's plan to cut jobs and offer buyouts to it union workers. The stock was off more than 10 percent Friday. Employees at Ford's plant on Chicago's South Side are worried about the impact of the company's restructuring.

About 2,400 employees work at the Ford assembly plant at 130th and Torrance, and many of them belong to the credit union. In fact, it was good pay and good benefits that attracted most of those employees. But now, many of those workers at the Ford assembly plant on the Southeast Side are re-evaluating their situations.

The credit union is often the first stop for Ford employees on pay day. But on this pay day, workers have more on their minds.

"People feel uneasy. They don't know where Ford is going from here. We hope it's something positive," said Matthias Cooper, Ford worker.

Ford's plan to create a stronger company means throughout the company 10,000 jobs will be cut. And all hourly employees will be offered buyouts. The buyouts include several options, ranging from one lump sum to educational support.

At Chicago's assembly plant, employees say there is a lot to think about.

"Keeping the insurance as it is, pretty important for me right because I have a child. So taking the money and running would not really be wise for me," said Jerry Gough, Ford worker.

"I have to weigh my options and see what's best for my family. I know we have one of the best benefits so that's something we have to consider," said Carlex Grier, Ford worker.

Chicago employees did hear some hopeful news.

"New Lincoln flagship sedan, the Lincoln MKS, we plan to build it in Chicago and equip it with more technology and features than any Lincoln before it," said Mark Fields, Ford Motor Co. executive VP.

"That's great news. Hopefully, the car sells and it will keep us working even more hours," said Carl Bryant, UAW Local 551 president.

"We got a Lincoln. And we had good people there and been in a long time. I'm going to hang in there with them," said Valerie Mille, Ford worker.

While Chicago workers may have more options than workers at other locations, increases in gas prices and consumers looking for more gas-efficient vehicles means more changes could be on the horizon.

"This will not likely end anytime soon. There is more competitors in the market. In addition, GM and Ford have cost structures that are uncompetitive, and they need to do something to lower those costs," said John Novak, Morningstar analyst.

UAW Local 551 has its monthly meeting scheduled for this Sunday afternoon. They are hoping to hold that regularly scheduled meeting if they have 100 employees. But, whether they have the meeting or not, these discussions will continue about what to do with their futures and about the future of Ford.

The company said in a news release that it would shutter a stamping plant in Maumee, Ohio, in 2008 and an engine plant in Essex, Ontario, in 2007. In addition, an assembly plant in Norfolk, Va., will close in 2007, a year earlier than previously announced.

Ford said it would complete its cuts of 25,000 to 30,000 hourly jobs by the end of the 2008, four years ahead of its previous target. Ford also said it already had cut 4,000 salaried positions in the first quarter of this year.

The Associated Press contributed to this report.

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