Ford makes redundancy offers to unionised factory workers

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DETROIT // Ford has issued voluntary redundancy notices to all its 41,000 United Auto Worker (UAW) factory workers in the US, as the car maker struggles to reduce its overheads. Ford has offered UAW members a typical severance package of $50,000 cash plus a $25,000 voucher to buy a new car or an additional $20,000 payment. The redundancy offer remains firm until late January 2010 and workers who accept the voluntary agreement would be expected to leave the car maker by the end of February. A similar cost-cutting offer made by Ford to UAW workers in July this year helped the car maker shed 1,000 jobs. A typical UAW worker earns approximately $28 (Dh102) an hour, while new employees are recruited on contracts worth $14 (Dh51) an hour.