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Most of Ford Motor Co.'s white-collar workers will get buyout offers by the end of next week.

The massive effort will start Monday and involve mostly individual meetings between thousands of lower- to mid-level salaried workers and their supervisors, Ford spokesman Tom Hoyt said Friday.

The salaried workers will face an agonizing holiday decision on whether to take the offers. The workers will have until Jan. 5 to decide.

If Ford does not reach its target of payroll cuts after Jan. 5, the automaker could be forced to involuntarily cut workers, Hoyt said.

Ford already made offers to certain upper management positions. Hoyt would not say how many offers will go out.

http://www.freep.com/apps/pbcs.dll/article?AID=/20061209/BUSINESS01/612090382

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RodgerRafter's comments on Ford
FWIW I agree 100%
http://boards.fool.com/Message.asp?mid=24916642
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RodgerRafter's comments on Ford
FWIW I agree 100%


So, just to clarify, you (by agreeing with Rodger) are predicting a 100% probability of Ford going out of business and a very high probability (approaching 100%) of GM going out of business (Rodger: "company is insolvent ... (as is GM)"? I know that "insolvent" doesn't equate with going out of business, but that's how Rodger's message reads to me, especially the last 2 paragraphs.

Also, Rodger said: If the company would just declare bankruptcy and transfer ownership from the stockholders to the bondholders all those jobs could be preserved.

First of all, preserving jobs is not the objective of a for-profit company in a capitalist market, but that's a whole separate discussion. As for the quote above, I don't understand how, by any scenario, Ford could preserve "all" of its current jobs. Please explain.

-Darth

P.S. These are originally Rodger's words, so maybe he would be the better person to ask, but you did say that you agree 100%.
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Thanks for the chance to clarify

Here is the text:
Instead, the company tries to cut expenses to put off the inevitable as long as possible.
-Exectutives get to keep their high paying jobs a little while longer.
-The stock market stays propped up a little while longer.
-Wall St. doesn't have to pay out on Billions of dollars worth of credit default swaps for a little while longer.
-The money supply avoids a big credit contraction a little while longer.

Two main options on Ford's eventual bankruptcy:

A: Get it over with and preserve the economy and jobs.
B: Put it off and pad your pockets while your community slowly dies.

Ford management is choosing option B.


I agree with all of that (with one exception below), especially the part about preserving the company just to pad their pockets. I have made similar statements before myself somewhere. I even admit it is a problem because the company is supposed to act in the interests of stockholders not bondholders. But I do not think that is why they are doing it.

Ford just pledged 40% of the company to get financing.

What I disagree with is whether or not it would have actually saved jobs. The market does not like Ford cars and as long as it stays that way will go out of business even if they can produce cars on a price competitive basis.

So it is in effect not a 100% agreement.
It is necessary to reduce
A: Get it over with and preserve the economy and jobs.
to
A: A: Get it over with

BTW - I noticed that just as soon as I posted it so you will have to ask Rodger why Ford jobs would survive

The advantage of A is that there was enough cash so that all workers would get their promised pensions and promised healthcare benefits. Whether it would have saved jobs long term is indeed debatable. I think not actually so thanks for giving me a chance to correct.

Mish
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