AUTO INDUSTRY Ford plans 10% cut of salaried jobs

Ford workers learned of the cost-cutting plan in an e-mail from the CEO.
DEARBORN, Mich. (AP) -- Ford Motor Co. said Friday it plans to cut an unspecified number of white collar jobs as part of an effort to reduce costs related to its salaried work force by 10 percent by the end of the year.
The cost-cutting effort comes as the world's No. 2 automaker tries to keep its restructuring plan on track. Ford said earlier this week that it slashed expenses by $1.3 billion in the second quarter; its goal is to reduce costs by $2.5 billion by year's end.
Ford declined to say how many white-collar jobs would be cut. Chief operating officer Nick Scheele alerted Ford workers worldwide in an e-mail Friday morning.
"Despite this excellent work, we still face uncertain economies around the globe and a fiercely competitive marketplace," Scheele said in his e-mail. "As a result, it's imperative that we continue looking at all of our costs globally to achieve even higher levels of efficiency and cost competitiveness."
Scheele said some of 10 percent savings will be achieved through attrition, hiring freezes, elimination of overtime and a reduction in agency and supplemental workers.
"However, where these actions cannot fully meet the targets, we will have to reduce our salaried personnel structure to address the balance," Scheele said.
Undecided
Ford has about 79,000 salaried automotive workers worldwide.
Dennis Cirbes, Ford's vice president for labor relations, said the company had yet to determine how many jobs would be eliminated.
"There are no numbers that I'm aware of," Cirbes said. "We haven't finalized our plan."
In 2001, Ford cut 3,500 white-collar positions by offering early retirements and voluntary separation packages. About 1,500 more salaried positions were cut early last year as the automaker continued its cost-cutting efforts.
Word of the planned cuts came as the company began contract talks with the United Auto Workers. Negotiations between the union and other major U.S. automakers were kicked off with ceremonial handshakes earlier this week.
General Motors Corp. also cut its white-collar costs this year. For example, more than 160,000 retirees who had previously paid little or nothing for health care benefits saw their premiums jump by as much as $51 a month.