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The Future of Ford

Ford workers who go voluntarily 'would get about £30,000'


FORD workers could get more than a year’s salary if they take voluntary redundancy, the Daily Echo can reveal.

Bosses of the international motor giant hope that the cash will convince staff at its Southampton Transit plant to agree to leave.

They are bidding to almost half the 1,100 workforce at the Swaythling factory.

More than 500 jobs are to go.

Many workers will get a pay-off worth tens of thousands of pounds, with more than a year’s salary coming at once.

The deal includes a special payment of six months’ wages and up to three months’ pay in lieu of notice.

Axed workers will also get one week’s pay for each year’s service up to the age of 41 and a week-and-a-half from that point on.

All of these payments would include shift allowances.

A pension deal will be struck with those who are over 50 on May 5.

Workers have told the Daily Echo they thought that the volunteers would walk away with about £30,000 on average.

A Ford spokesman said: “Ford would always craft the fairest deal we could afford.

Ford has a history of doing the right thing and we have not had to make a compulsory redundancy in the UK since 1967.

” He refused to predict how many workers the company thought would take up the deal.

See today's newspaper to read the full story

Unite union regional officer Ian Woodland said: “I think this is a good union-negotiated deal and we would like to see training on offer to help workers who are leaving to have the best chance of finding work elsewhere.”

The company will be writing to employees over the next three weeks with exact figures of what payments they can expect should they opt for redundancy.

Interest needs to have been lodged by March 13 and applied for by April 21, before the end date of May 5.

Feeling among the workers is mixed.

One worker, who wished to remain anonymous, said: “On the face of it these figures sound generous but I think people will be surprised how little it comes to when they sit down and work it out. “I have a young family and I can’t raise them as a pensioner.

This is not the right time to be looking for another job.” Another said: “I will be waiting to see how much I would be getting after tax and everything and decide what I’ll do then.

“I don’t think it will be easy to get another job as the recession is crippling the global economy and the city just doesn’t have a manufacturing industry any more. I still haven’t really taken the news in.”


Comments(32)

Lone Ranger says...
12:08pm Mon 9 Feb 09

Don't necassarily share all of your views.

With the world economic downturn it was only a matter of time before this industry, along with many others, would feel the pinch in a big way.

Not just Ford in the UK but also Honda and Nissan, who have little or none union interference, plus many others.

The unions of course, on the face of it, did not help but it was inevitable whats happening in Fords is the final conclusion.

Their saving grace is that the employees who take voluntary redundancy will at least walk away with, possibly, 12 months money which is a hell of a lot more that most other industries.

There will be many companies that will no longer exist after this recession and of course many peoples jobs/livelihoods, but with a bit of luck and some hard work they will all survive to fight another day and possibly be stronger than ever.

I know i have been there and come out the other side

goard says...
12:46pm Mon 9 Feb 09

My family have never been connected to Fords, but nevertheless I feel concerned for all the workers. As with yesteryear: cotton mills up North all was decimated - and whole villages were without work. Even Port Talbot is being taken apart. Our coal mines were needed no more - thousands, if not millions of manpower were also laid awaste, look at our Ports, Soton particularly, gone are the days of loading and unloading precious cargo and ship building. Tin mines in Cornwall a hundred years ago, all decided by politicians who were playing at the game of Rule the Country. Now we are bringing in a boat laden with asbestos - three countries have barred entry. Even our farming stock and land earmarked for housing and supermarkets. Parliament, I can understand we need the money but WHAT THE HELL to whom are we selling it to? Sell off little old England and you give (politically) our soul. Am I going over the top again? it's how I feel. I only wanted to talk about Fords too - again, its BIG business and we are the fall guys.

goard

southy says...
1:06pm Mon 9 Feb 09

Lone Ranger you must be youngish, if your on a salary contract wage your redundancy payments is fix at what ever level, but if your on a pay per hour rate, you have to work for 3 years then you get one week pay for every year you work for redundancy payment, but back in the 60's tory government (m.thatcher) put a max on the redundancy payments for pay per hourly workers the max that they could take home was/is £24,000, if it was not for the unions they and you would not have what you got to-day like your paid holidays, standard of living ect ect ect ect the list is very long, unions dont just fight for its members it fights for every one to bring better conditions to all workers.
echo you should know better than to print miss leading items

southy says...
1:08pm Mon 9 Feb 09

sorry i said 60's government i ment m.thatcher 80's tory government.

AD74 says...
1:21pm Mon 9 Feb 09

Southy, I have a feeling that that the Government have decided on minimum payment levels but companies are allowed to go over that if they want to, with a lump sum alongside the calculated minimum, so I think the Echo headline is correct (Providing their sources are correct!)

southy says...
1:27pm Mon 9 Feb 09

there's no minimum pay out apart from nil if you work there for less than 3 years, but the max might off been put up a little bit, but m.thacher tory government put a max pay out on redundancy, its only salary paid people that can go over the limit.

Me again! says...
1:29pm Mon 9 Feb 09

southy wrote:
Lone Ranger you must be youngish, if your on a salary contract wage your redundancy payments is fix at what ever level, but if your on a pay per hour rate, you have to work for 3 years then you get one week pay for every year you work for redundancy payment, but back in the 60's tory government (m.thatcher) put a max on the redundancy payments for pay per hourly workers the max that they could take home was/is £24,000, if it was not for the unions they and you would not have what you got to-day like your paid holidays, standard of living ect ect ect ect the list is very long, unions dont just fight for its members it fights for every one to bring better conditions to all workers. echo you should know better than to print miss leading items
I think you are referring to Statutory Redundancy here. What Ford are offering is a company redundancy package, which permits them to make adjustments and/or enhancements over and above what the statutory payments would be. It doesn't matter if you're on an hourly rate or if you're salaried staff, redundancy is still worked out using the same method..i.e. one weeks pay for each year of service etc., dependent on age.

southy says...
1:46pm Mon 9 Feb 09

Me again! statutory redundancy is fix they cant go above than the limits, but if your on a contract agreement then they can offer that bit extra but they have to keep to the terms off the contract and most off those type contracts are not worth the paper they are written on, salary contracts is work out on the completion of contract and is fix, providing that you full fill the criteria of that contract.

James May For PM says...
1:55pm Mon 9 Feb 09

Statutory redundancy pay is as follows:
In order to qualify for redundancy pay employees must have been employed for 2 years regardless of hours worked
up to 21 half a weeks pay for each complete year worked
aged 22 -40 one weeks pay for each complete year worked between these ages
aged 41 and over one and a half weeks pay as above
maximum number of years worked which can be taken into account is 20.
Redundancy pay is tax free up to £30,000 provided that the offer is made when the employee leaves and was not written into the contract of employment.
A company can offer more than the statutory limit is it so wishes.

Lone Ranger says...
1:58pm Mon 9 Feb 09

southy wrote:
Lone Ranger you must be youngish, if your on a salary contract wage your redundancy payments is fix at what ever level, but if your on a pay per hour rate, you have to work for 3 years then you get one week pay for every year you work for redundancy payment, but back in the 60's tory government (m.thatcher) put a max on the redundancy payments for pay per hourly workers the max that they could take home was/is £24,000, if it was not for the unions they and you would not have what you got to-day like your paid holidays, standard of living ect ect ect ect the list is very long, unions dont just fight for its members it fights for every one to bring better conditions to all workers. echo you should know better than to print miss leading items
Southy, i am not having a pop at unions as i think in the main the work that they do is great.

But there were times during the recent months where they have not helped the Fords situation ie balloting for strike action at a time when it was the last thing that was needed.

Me again! says...
2:04pm Mon 9 Feb 09

southy wrote:
Me again! statutory redundancy is fix they cant go above than the limits, but if your on a contract agreement then they can offer that bit extra but they have to keep to the terms off the contract and most off those type contracts are not worth the paper they are written on, salary contracts is work out on the completion of contract and is fix, providing that you full fill the criteria of that contract.
I'm not disputing what you say about statutory redundancy Southy, I'm just pointing out that what is being offered is a company package - there IS a difference. James May for PM is right! A company can offer more than the statutory limit if it so wishes. Statutory, is therefore the MINIMUM that can be paid; Fords have chosen not to go with the minimum statutory redundancy, but to offer their own package instead, which exceeds any statutory redundany set by the government. Get your head out of the sand and be 100% sure of what you're spouting off about, before posting your comments on here and confusing people.

AD74 says...
2:21pm Mon 9 Feb 09

My factory was closed in 1998 and the minimum payout was £5000 for employees with 6 months or more service and calculated up from that point the more service you had. That was negotiated by the Unions and was the same for both salaried and hourly employees.

James May For PM says...
2:35pm Mon 9 Feb 09

http://www.berr.gov.
uk/files/file47510.p
df

Page 23 makes intresting reading

Boatman says...
2:37pm Mon 9 Feb 09

Statutory redundancy pay is the MINIMUM that an employer must pay (subject to max £350 per week). However, an employer can increase this by any amount he wishes such increased amount may be subject to tax.
Rules are:-
0.5 week’s pay for each full year of service where age during year less than 22
1.0 week’s pay for each full year of service where age during year is 22 or above, but less than 41
1.5 weeks’ pay for each full year of service where age during year is 41+

hulla baloo says...
2:40pm Mon 9 Feb 09

southy wrote:
sorry i said 60's government i ment m.thatcher 80's tory government.
You do seem to blame everything on the Thatcher Government from the 80's. Some justified and some exaggerated.
But don't forget the current shower have been in power for over 11 years and what have they done to improve or change things?
Absolutely nothing, other than to turn this country into the laughing stock of the world.

southy says...
3:08pm Mon 9 Feb 09

hulla baloo wrote:
southy wrote:
sorry i said 60's government i ment m.thatcher 80's tory government.
You do seem to blame everything on the Thatcher Government from the 80's. Some justified and some exaggerated.
But don't forget the current shower have been in power for over 11 years and what have they done to improve or change things?
Absolutely nothing, other than to turn this country into the laughing stock of the world.
it was in the 80's that the damage was done hulla baloo, and this government is no more than a tory government under a labour name.
has for you other you need to get to know the 3 different types of pay structures, what you been quoting is the contract pay where you dont have a choice, eg you paid for the hours you work plus a fix amount off over time you have to do, per year, where has pay has earn you have a choice of weather if you do the over time or not, they are different most that started a job from and after the mid 80's will be on the contract pay agreement, and like i said the min is nil and the max is what ever it went up to but use to be £24, the tax free part is base on what you can earn in one year that could be tax free.any more than that is counted has part of your yearly earnings and is taxable

forcaster says...
3:36pm Mon 9 Feb 09

Maybe the Ford redundant workers with their new found wealth could club together and buy the SAINTS? make a lot of people happy and create an economic upsurge for Southampton and bury the boggie man Lowe for good.

lowe and behold says...
4:04pm Mon 9 Feb 09

forcaster wrote:
Maybe the Ford redundant workers with their new found wealth could club together and buy the SAINTS? make a lot of people happy and create an economic upsurge for Southampton and bury the boggie man Lowe for good.
Fantastic idea! Maybe GOARD AND SOUTHY CAN START THE CHARITY APPEAL!

Miles Sway says...
4:24pm Mon 9 Feb 09

lowe and behold wrote:
forcaster wrote:
Maybe the Ford redundant workers with their new found wealth could club together and buy the SAINTS? make a lot of people happy and create an economic upsurge for Southampton and bury the boggie man Lowe for good.
Fantastic idea! Maybe GOARD AND SOUTHY CAN START THE CHARITY APPEAL!
Saint's been goin' down since the 80's M.Thatcher Tory govt.....oops, sorry, I slipped into Southy mode!

Anyway, 12 months redundancy pay is a good deal, little breathing space to look around. It's not ALL doom and gloom out there.

lowe and behold says...
4:36pm Mon 9 Feb 09

Miles Sway wrote:
lowe and behold wrote:
forcaster wrote: Maybe the Ford redundant workers with their new found wealth could club together and buy the SAINTS? make a lot of people happy and create an economic upsurge for Southampton and bury the boggie man Lowe for good.
Fantastic idea! Maybe GOARD AND SOUTHY CAN START THE CHARITY APPEAL!
Saint's been goin' down since the 80's M.Thatcher Tory govt.....oops, sorry, I slipped into Southy mode! Anyway, 12 months redundancy pay is a good deal, little breathing space to look around. It's not ALL doom and gloom out there.
It should help them out for a while!
They can always go back to being taxi drivers officially instead of moonlighting.... :-)

Northamboy says...
4:43pm Mon 9 Feb 09

Who comes up with these security words!

wide-debt

me,myself and I says...
6:55pm Mon 9 Feb 09

and....
help-what

me,myself and I says...
6:56pm Mon 9 Feb 09

then...
cash-care

Militant Ford Worker says...
7:28pm Mon 9 Feb 09

I can't believe the comments I'm reading here, British manufacturing jobs in a key regional industry are being sent to Turkey increasing local unemployment and taking £1.4 billion p.a out of the local economy but Ford workers are getting a good redundancy deal SO THAT'S ALLRIGHT THEN.
Well, I suppose if you were one of the old **** at Ford waiting to retire then this is an extra £30k for nothing (and nothing is exactly what most of them have contributed to the fight to keep the Transit at the plant.)
But what about the contractors at Ford who work for Penske, Hamtons and Magna, many of whom will be sacked with just a week in hand?
What about the younger Ford workers who who won't get a pension? £30k is'nt much when you have a £200k mortgage on a shoebox thats now only worth £150k. They won't be able to go and are stuck on a sinking ship.
"Ford has a history of doing the right thing" says a spokesman.
So, reneging on an agreement to keep production at Southampton, tearing up a pay deal days after acceptance and turning your back on a community that has loyally supported you for 40 years is 'doing the right thing'?
History, or Ford's version of it, is bunk.

Stubs says...
8:51pm Mon 9 Feb 09

Do you get a free van as well?

lowe and behold says...
10:52pm Mon 9 Feb 09

Stubs wrote:
Do you get a free van as well?
YES A CORGI VAN.....

damien thorn says...
12:55am Tue 10 Feb 09

30.000 or 300.000 is totally irelevant ,paper money will be worthless in the near future.

Big Boy says...
5:00am Tue 10 Feb 09

“I don’t think it will be easy to get another job as the recession is crippling the global economy and the city just doesn’t have a manufacturing industry any more. I still haven’t really taken the news in.”

This has been going on for months (when they laid the contractors off) & he hasn't taken the news in! Either a poor choice of words or the IQ of Ford workers is worse than I thought!

Big Boy says...
5:04am Tue 10 Feb 09

Goard, Yes, you have gone OTT again. Never mind, it has happened to me a few times as well. I'm sorry, but the phrase 'out of your gourd' springs to mind! :-) I'm sure you will get me back for that!

AD74 says...
11:06am Tue 10 Feb 09

Lets face it, our way of life we have enjoyed has turned out to be too expensive to maintain and we have priced ourselves out of a global market. When everyone is desperate enough to stop demanding massive wage increases year on year then the work will come back as other economies catch up and overtake and we will become the Turkey/Poland of Europe.
Thats got to get some comments!

southy says...
12:43pm Tue 10 Feb 09

well i hope you office boys are ready, your turn soon to lose your jobs and be put on the scrap heap

Miles Sway says...
5:00pm Tue 10 Feb 09

In response to militant, £30K may not be "a lot" but it is a generous pay-off, bearing in mind what the minimum could be.
Presumably the younger ones you mention with a £200K mortgage would have had the sense to take out mortgage protection? ( & how much were they earning for a £200K mortgage?)
No, redundancy is not good for them or the local economy, but, accepting it's going to happen whatever you wish, Ford are at least being generous with pay-offs.
And Southy, office workers are already losing their jobs in this recession - employers are shedding workers where they can and the impact to an office worker or a manual worker is pretty much the same, the difference is how the individual reacts to it.


MUCH TO PONDER: Ford workers walk out of the Transit plant in Swaythling after a meeting about job losses. MUCH TO PONDER: Ford workers walk out of the Transit plant in Swaythling after a meeting about job losses.

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