Ford targeted older salaried employees during 2019 layoffs, documents in age discrimination lawsuit reveal – WSWS

Ford Motor Company specifically targeted older salaried employees for layoff in a bid to shed pension and other employment expenses during its years-long, multi-billion-dollar cost-cutting campaign, according to recently unearthed emails. The documents, uncovered as part of a class action lawsuit against the company, were obtained by the Detroit Free Press, which published extended interviews with a number of the employees involved in the suit on Friday.

Ford Motor Company World Headquarters (WSWS)

The layoffs took place in 2019 under then-CEO Jim Hackett, who was elevated to his position in 2017 and tasked with carrying out a sweeping restructuring of the company’s global operations to reinvigorate Ford’s slumping share price. Despite an international campaign involving plant closures and thousands of cuts to white and blue collar jobs, Hackett’s “turnaround” plan was ultimately judged to be insufficiently aggressive by Wall Street and he was ousted in 2020, replaced by current CEO Jim Farley last October.

Ford laid off at least 7,000 salaried employees in 2019, 10 percent of its global white collar workforce, as part of its euphemistically named “Smart Redesign” restructuring, as well as 12,000 mostly hourly workers in Europe.

The layoffs were part of what the WSWS Autoworker Newsletter characterized at the time as a jobs bloodbath throughout the auto industry, including most notoriously the 14,000 job cuts and five plant closures by General Motors announced in November 2018. Despite years of record profits, the corporations were seeking to offset stagnating sales and the investment costs in electric vehicles by slashing their workforces and ramping up the output of those who remained.

The lawsuit by a group of salaried employees at Ford, many if not all of whom were in management positions, was initially filed in June 2019, shortly after their termination the prior month. Their suit accuses Ford of violating federal labor and tax law, as well as civil rights protections against age discrimination, when it targeted employees for layoff who were older and had higher pension costs. Ford employees hired before 2004 qualified for pensions, which have come to be viewed as an intolerable drain on profits by America’s financial oligarchy.

In one December 2018 email quoted by the Free Press, a director of a Ford vehicle line at the time told his ex-wife: “As you probably have heard, Ford is in the process of a ‘Smart Organization Redesign’ that is targeted to eliminate 25% of the LL6 through LL2 [a salaried pay grade rating] population by 2nd quarter 2019. They are targeting the most senior leaders first (29+ years of service and 50+ years old).”

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