There may be an inkling of good news for the thousands of
workers at Ford who learned Monday that they might lose their
jobs.
The Detroit auto company made the much-awaited announcement
of its "Way Forward" plan, which will cut 25,000 to 30,000
jobs in the next six years.
But days before, Ford made an announcement that might ease
the pain of its own employees as well as workers at its
competitors: a new tuition program. Under it, workers at
Fordfs Edison, New Jersey, plant, which closed in 2004, and
the 1,500 workers who were laid off in December after Ford
closed its Avon Lake, Ohio, plant, can receive up to $15,000 a
year toward school as long as they go full time. They also
will receive full medical benefits and half of their usual
hourly salary.
Spokeswoman Marcey Evans says the company does not know
whether it will extend the program to all 1,100 workers in the
companyfs Guaranteed Employee Numbers Program, more commonly
known as a job bank, which provides laid-off workers with full
salary and benefits. But observers predict that it will. They
also anticipate that General Motors, Delphi and
DaimlerChrysler will follow in its footsteps as the companies
prepare for intense negotiations with the United Auto Workers.
Job banks have become increasingly costly for the Big Three
automakers as layoffs increase. Thatfs why Fordfs move right
now makes sense.
"This is going to be a huge negotiation point for the Big
Three in 2007 when the UAW contracts expire," says Sean
McAlinden, a director in the economics business group at the
Center for Automotive Research in Ann Arbor, Michigan.
McAlinden estimates that job banks cost about $130,000 per
worker. That adds up, considering that GM has 5,300 workers in
its pool. Delphi has 4,000, and DaimlerChrysler has 2,300.
Fordfs numbers are expected to rise dramatically, given its
announced layoffs.
At the Automotive News World Congress this month,
UAW president Ron Gettelfinger said that he does not believe
that "itfs time to change" the jobs banks, but observers
predict he might not get his way.
"If I was a Ford worker who had been laid off, I would take
the tuition, because it is very likely that these job banks
are going away," says Jim Gillette, director of supplier
analysis at CSM Worldwide.
Evans concedes that the program will make it easier for
Ford to manage its pool of idled workers, but would not say
that the company made the move to ease negotiations with the
UAW next year. "We did this to benefit the employee," she
says.
GM plans to take a close look at Fordfs program before
deciding whether it would make a similar move, says Stefan
Weinmann, a GM spokesman. Delphi has no plans to follow Fordfs
lead currently, spokeswoman Lindsey Williams says. And
DaimlerChrysler has no plans to offer a similar program,
company spokesman David Elshoff says.
Being the first to offer a tuition program may make
negotiations easier with the UAW next year because it is a
gesture of good will, says Arthur Wheaton, an industry
education specialist at Cornell Universityfs School of
Industrial and Labor Relations. "Unions are more willing to
negotiate innovative contracts with someone they trust," he
says.
--Jessica
Marquez