Ford offers retirement incentives to allow laid off workers to come back to their jobs
By Paula Aven Gladych
Ford has taken a different approach to saving money and getting laid off workers back to their jobs in Ontario, Canada. According to a story in The Canadian Press, Ford is offering a $50,000 incentive and a voucher for a brand new car to any of the 1,000 employees who are close to retirement who agree to leave the workforce.
About 800 employees were laid off previously and as part of recent collective bargaining sessions, Ford agreed to investments that would create about 600 new jobs at its assembly plant in Oakville, Ont., that would get those people back to work. The agreement will add a third shift to the plant’s body, paint and pre-trim departments that will add about 300 people and also will add a new product to the plant that will add an additional 300 jobs.
Ford’s Windsor operations will add about 35 new jobs doing machinist work.
Employees who were laid off but will be recalled as part of this agreement won’t make the lower starting wage rates of brand new employees, according to the story. Newly hired Canadian workers will earn about $20 an hour, which is a $4 drop from the previous starting wage.
Ford also plans to convert its defined benefit pension plan into a hybrid pension plan as part of negotiations.
Originally published on BenefitsPro.com