Ford will provide $50,000 buyouts to eligible employees as part of the landmark agreement between the automaker and the United Auto Workers union.
Included in the tentative contract is a provision called the “Special Retirement Incentive.” The incentive sets up a buyout fund that would provide a $50,000 buyout for employees who retire next year.
“Your UAW bargaining committee was successful in negotiating enterprise-wide buyout offerings for our legacy members. The Special Retirement Incentive (SRI) will be for $50,000 (gross pretax) for an unlimited number of eligible production and skilled trade members,” the document reads.
Those who wish to receive the funds would need to retire before Dec. 1, 2024.
The contract does not list how many years of service workers need to qualify for the SRI, but some reports suggest that employees who have worked for Ford for at least 30 years will be eligible.
The retirement buyout is just one of the many concessions won by the union in its tentative contract with Ford, which was reached late last month. Changes to retirement benefits were one of the key issues for UAW during negotiations, with President Shawn Fain demanding a return to pension-based retirement plans.
While the union did not secure the reinstatement of pension plans, it did win increases to retirement contributions, higher wages and better workplace conditions.