White-collar workers sue Ford over planned layoffs

Published: Jun. 28, 2019 at 2:42 PM EDT
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White-collar employees at U.S. automaker Ford Motor Company are taking the car company to court.

It is all about the automaker's plan to cut seven-thousand white-collar jobs worldwide by August of this year.

The four leadership-level workers from Dearborn, Michigan say Ford is deliberately laying them off right before they hit certain tenure benchmarks that in some cases would double their retirement benefits.

The four employees say they plan to decline Ford's severance pay offer of nine months pay, six months healthcare, and three years of car leases.

On Monday, Ford revealed details of its long-awaited restructuring plan.

It is part of the company's preparation for a future of electric and autonomous vehicles.

To do so, the company says it will need let go of 7,000 white-collar workers worldwide.

That figure is about 10% of its global salaried workforce.

The major revamp, which had been under way since last year, will save about $600 million per year according to Ford.

Ford also says this move will eliminate bureaucracy and increase the number of workers reporting to each manager.

In the United States about 2,300 jobs will be cut through buyouts and layoffs, Ford said.

About 1,500 have left voluntarily or with buyouts, while another 300 have already been laid off.

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