Ford will be providing $50,000 buyouts to eligible employees as part of the agreement made between the automaker and the United Auto Workers (UAW) union. This buyout, known as the “Special Retirement Incentive,” is a provision in the tentative contract that establishes a buyout fund for employees who retire next year. The buyout fund will offer a $50,000 buyout for an unlimited number of eligible production and skilled trade members.
To receive the buyout funds, employees must retire before December 1, 2024. Although the contract does not specify the number of years of service required to qualify for the Special Retirement Incentive, reports suggest that employees who have been with Ford for at least 30 years will be eligible.
The retirement buyout is just one of the concessions won by the UAW in the tentative contract with Ford. Changes to retirement benefits were a key issue for the union during negotiations, with President Shawn Fain advocating for a return to pension-based retirement plans. While the reinstatement of pension plans was not achieved, the UAW did secure increases to retirement contributions, higher wages, and improved workplace conditions.
