Ford fires salaried employees

[Ruby Romaine]

Struggling automaker using new tactic to slash its payroll

August 12, 2005

BY MICHAEL ELLIS
FREE PRESS BUSINESS WRITER

Ford Motor Co., for the first time in generations, has resorted to firing employees and immediately escorting them from corporate buildings -- roiling the company and compelling Chief Executive Officer Bill Ford to send a message this week to reassure the so-called Ford Family.

Until now, Detroit automakers have cut thousands of white-collar jobs almost exclusively by getting employees to voluntarily quit through early retirement, buyouts or letting open positions go unfilled.

http://www.freep.com/money/autonews/ford12e_20050812.htm

[hadrons]

1. welcome to Bushworld

[Trillo]

2. I was taught that if you quit, you should give 2-weeks notice.

firing employees and immediately escorting them from corporate buildings

What I was taught when young was a lie. Of course, I figured this out years ago.

[Igel]

20. It's the way I've usually seen it done, actually.

They've always gotten unemployment (unless they were fired because they did something wrong), and severance (at least two weeks' pay).

Too risky letting fired employees hang around. They can mess up too many things. I've seen it done--a counter clerk that told clients not to come back, a sales rep who took the rolodex and complained to the customers she had good relations with, a kitchen where the employees sided with the old manager against the new manager and as a consequence almost all were fired or quit in the next month.

As a result when I fired my first employee, escorting him from the building wasn't the first thing I did: Altering his computer/keycard privileges were. Then I took his keys and escorted him from the building.

[ikojo]

34. Oooh two weeks severance pay....how generous!

I hope those employees you have fired aren't spending that handsome severance package in one place.

The compassion of capitalism!

[Stil]

39. Where I work

They took them out to lunch. As in we are having an offsite meeting. Then told them they weren't going back in.

[Clovis Sangrail]

21. I've never understood that

Companies don't give you notice, why should you give them notice?
(unless someone is fired for cause, which is different)

I think the most notice I've ever given at a tech job was 1 day.

[Trillo]

23. Precisely,

A fundamental deception.

[SharonAnn]

28. They may still pay you the 2 weeks, or whatever, they just don't

want you on the premises.

I've also seen it done where, when a person turned in their resignation, they were immediately escorted off premises. They still were paid the two weeks, but the company thought there was too much sensitive information that they didn't want compromised by an employee who wasn't happy enough to stay there. The employee still had to be available to work, if requested, during the two weeks, but it would be under close supervision if it occurred.

Actually, these things make good business sense, it's just hard to do it humanely and leave the person feeling respected.

[shadowknows69]

32. I was downsized in corporate radio

and booted out the door in 15 after 6 years loyal service. can't blame them because I could have really messed things up given 10 minutes in my production room.

[Caretha]

37. Wrong!

They still were paid the two weeks, but the company thought there was too much sensitive information that they didn't want compromised by an employee who wasn't happy enough to stay there. The employee still had to be available to work, if requested, during the two weeks

I don't think so! If you have been asked to leave because of a "trust issue" and they don't want you there....you are not obligated to be at their "beck'n call" or "fart'n fetchum" crap.

Remember this is STILL a free country and employees are not slaves.
Please don't start thinking otherwise....that's a very dangerous slippery slope.

[podnoi]

38. I once gave my notice and They made me leave without pay!

I once gave notice and they let me go immdiately. It was a total drag as I needed the next two weeks pay. I was being considerate of them. My manager told me "once someone puts in their notice they are basically useless the rest of their stay".
What a scum.
Hey, he was a Christian Right winger too ... how surprising.

Saw him more than a year later and he came up to me like we were best buddies. These neo-cons just don't have a soul. They just don't get it.

[meegbear]

3. If they "fired" them in the true sense ...

these people cannot collect unemployment. Hope it's not like that.

[Ruby Romaine]

7. but the definition of layoff has changed too- it used to mean

a short term work stoppage-factory shut down.
not it means no more job

[Warren Stupidity]

9. I think folks are jumping to conclusions here

High tech companies are notorious for this sort of layoff - where everyone affected gets the bum's rush out the door. Such a layoff (and it is a layoff, these people are not being 'fired for cause' which actually might affect their unemployment insurance) does not mean that there is no severance pay - the article does not indicate that one way or another. What it does mean is that the company can take them off the books that much sooner.

Ford lost about 1B last quarter, that is a huge loss. The article goes on to say that the president, Bill Ford, thinks the company is permanently downsizing. Wonder why? $67bl oil and a lot full of SUVs is my guess.

GM's suicidal price cut strategy appears to have taken its first victim. Maybe that asshat in the white house (or on his trophy ranch hiding from cindy to be exact) ought to tell us tomorrow in his affected texan accent how good the economy is doing again.

[meegbear]

16. I work in high-tech and I was "let go" during downsizing ...

I was not fired. A person at my place was fired and that meant "terminated with no benefits or way to collect unemployment".

[SoCalDem]

17. The "escort" is to prevent an employee who KNOWS he's on the way out

from doing mischief while he's working out the rest of his days at a company..

When I was a travel agent, a competitor called us to warn us about possibly hiring someone they fired.. Apparently when they told her she was getting laid off, she rwent through and cancelled reservations for lots of people's vacations, and they did not even know it until they were about ready to go..

[HereSince1628]

22. Actually, that varies from state to state and it depends on whether

the employee was fired for "cause."

My guess is that most of these firings are really addressing the company's financial needs. As such, the employees will be eligible for some assistance in their states.

If I were a FORD salaried employee on a team/division that wasn't making its goals I'd be considering buying income continuation insurance like NOW.

[xultar]

4. That is some tough ass hard mutherfuckin shit!

[CBGLuthier]

5. Good thing we have a great economy

So these folks will be able to find great jobs with ease.

[mbperrin]

8. Boy, isn't that a relief!!!

:crazy:

[Kolesar]

6. Hundreds of my coworkers got just that over the years....eom

[AtLiberty]

10. The employees who are left aren't that much luckier...

...They have paychecks and benefits for a while, but they'll be wondering if they'll be next. They'll be watching their backs and working harder and longer to make up for the workload of the employees who were laid off... Morale and will be in the toilet.

Also, the next lay-off won't be as "pretty," with smaller severance/benefits packages.

[Historic NY]

11. Not a really new tactic........

they remove the employee before computer files and other things go array. Since most are salaried there jobs technically have always been on the chopping block. No golden parachutes here.

Ford where "Quantity is not job 1". :sarcasm:

[demnan]

12. Once they let you go

they don't trust you enough to use the computer equipment. They're assuming you'll be as big a son of a bitch as they are!

Usually that's not the case.

[Clovis Sangrail]

19. nope, they don't trust them

I've worked at 2 different places where I locked people out of computer networks before the boss had finished telling them they were canned.

That's a really really common practice in tech industries.

[Kenergy]

26. True...that happened to me n/t

[NNN0LHI]

13. As a Ford retiree I pretty much know who these people voted for n/t

[Strelnikov_]

14. "We're Not Downsizing Temporarily With The Hope That Conditions . .

will get better."

In the ever-cyclical business of the automotive industry, Ford traditionally would downsize during a recession but then rehire many of the workers once the economy recovered and profits grew.

However, Bill Ford explained in his e-mail that the company isn't facing a traditional economic downturn.

"We're not downsizing temporarily with the hope that conditions will get better," he said.

Didn't he get the memo that the economy is roaring?

Sounds like Ford is not expecting growth, and are scaling back. Even with record prices, the petroleum industry is not building new transport or refinery infrastructure.

These 'captains' of industry all act like something essential is going to be in short supply soon. I wonder . . .

[jayfish]

15. "We're not downsizing temporarily with the hope that conditions will get b

Whew, that's a relief to be sure.

Jay

[SpiralHawk]

18. "All your benefits are belong to us." - Republican Corporate Greedmeisters

Republican credo:

"A rising tide lifts all yachts."

[Robert Oak]

24. dot con talk industry so much

Like how to humiliate people...escorting out the door...

just absolutely insulting.

They did that in the dot con era, I remember reading that Real Networks gave people body searches and a lot of threats to boot.

I never used their product period after reading that.

On the other hand, Ford doesn't have it together ...they outsource almost EVERYTHING and that is their fundamental problem.

[billbuckhead]

25. Ford's new volume midsize FusionMilanZephyr is a Mazda made in Mexico

Who needs American workers?

[cliss]

27. Bill Ford

is he a relative of Henry Ford?

[Lost4words]

30. Grandson I think.

[Voltaire99]

29. Thanks for making us hugely wealthy during the 90s...

...now get the fuck out!

Bastards.

[durablend]

31. How's that different than...

"We got your vote, now STFU"?

[Voltaire99]

40. Variations on a theme. (nt)

[newscott]

33. My company has a similar "family philosophy"

The layoffs we went through over 3 and half years were excrutiating.

So much for "family".

Watch your back is the true corporate motto.

[Speed8098]

35. I'm confused about the replies here

We continuously complain about the wide gap in salaries for the workers opposed to the salaries of management.

"At a meeting in June, Ford executives discussed the possibility of cutting 30% of the company's white-collar workforce in the North American automotive unit, according to a person who attended the meeting."

Shouldn't we be a little pleased that they are going for the higher priced workers rather than those that are on hourly wages and less fortunate?

Regardless of your position, losing your job is a very difficult thing.
However, it is less difficult for those who have been making enough to save some money over the years than it is for those who just make ends meet.

If a company is going to downsize, I applaud them for starting at the upper level.
Anyone agree or am I alone?

BTW, I don't blame them for asking the newly downsized to leave immediately. Today's world is so viscious and vindictive that a disgruntled worker can do a lot of damage before leaving a company.
Especially a worker that has access to upper level information.

[Stil]

41. Gap on salaries

For some reason I think the people getting fired are lower/mid management or in the engineering department. The company I work for recently made an offer the lower/mid management could not refuse. Retire early this year or take a chance on lay off next. Some where even told directly they may be the target of a layoff. These people weren't making much more then the blue collars. Especially when you consider the salaried folks did not get overtime.

[napi21]

36. I think Ford is doing a rational and necessary thing here.

If you look closely at the very large and very old corporations, you always find excess white collar workers, duplication of effort, and far too many bosses but not enough worker bees.

For years, workers would land a job, work very hard for several years, make the right friends, and get promoted into a managerial spot, and they more or less relax because they had it made. Promotions weren't made because a manager was NEEDED in some position, but because that was just the way rewards were passed out.

I'm glad to see that Ford isn't just resorting to the old slashing the blue collar jobs solution that has been used for years while protecting the high priced management.

The example used in the article about consolidating the sales and marketing of their Lincoln & Mercury divisions. The names Lincoln/Mercury have been used almost jointly for many years, but the Company still maintained separate sales/marketing divisions???

Seems to me that somebody at the top of this old giant is actually thinking for a change!