Motor Co. will offer a choice of three buyout packages to its U.S. white-collar workforce in an effort to trim an additional 10,000 jobs as part of its accelerated Way Forward North American restructuring strategy announced Sept. 15.
At the same time, the auto maker is offering generous retention bonuses to keep top-performing workers and executives deemed crucial to its restructuring strategy, according to The Wall Street Journal.
The first buyout offer reportedly will go out later this month, with the remaining two offers to take effect in December, published reports say.
If fewer than 10,000 salaried employees agree to the buyouts, the auto maker has the option to begin firing workers, who would leave with fewer benefits than those accepting buyouts.
managers will select workers eligible for the buyouts. Employees are to receive preliminary information this week, with more information to follow.
The first buyout package targets high-ranking managers 52 years of age or older with at least 10 years of service at the auto maker.
Dubbed the Select Retirement Plan, this package will be offered in mid-October. Employees who accept the buyout will receive pension incentives, but no severance pay. They will be required to leave by Dec. 31.
The second plan, or the Salaried Retirement Window, will be offered to lower-ranking managers and general salaried personnel between the ages of 50 to 64 and with 10 years of experience.
This plan will include improved pensions and severance pay from three to 13 months depending on years of service. It will be offered beginning in mid-December, and those who agree will be required to leave the auto maker by Feb. 28.
The third and final Voluntary Salaried Separation program has no age requirement and will be extended to employees who do not meet the requirements of the first two plans.
To be eligible, employees must have at least one year of service. Those choosing the plan will receive no pension improvements but will be eligible for severance pay equal to three to 13 months, depending on years of service. Participants in this package also will be required to leave by Feb. 28.
The last two plans also will offer limited health-care benefits.