Major Layoffs at Ford

In news that everyone has seen coming for a long time, Ford laid of 14,000 salaried workers and another 30,000 hourly workers. This is after a round of massive buy-out offers at Ford as well (the buyouts are actually pretty crazy, in some cases Ford will pay for tuition at a 4 year University). Not suprisingly, the UAW is up in arms over these layoff as this is probably the death-knell for quite a few UAW locals.

While this isn’t the end of the world for Detroit, it’s probably not going to help anything in the short term. The past 30 years of industrial and economic change in the Metro area has really been tough for a lot of people, families, and corporations. The shift in our economy from a manufacturing base to a service base has probably been the hardest on Detroit more than any other manufacturing cities, like Cleveland, Chicago, or Pittsburgh. Metro Detroit didn’t (and really still doesn’t) have a large banking, finance, trading, high-tech, or other service economy to fall back on when the manufacturing firms hit hard times.

I grew up in the north suburbs and my parents grew up in Royal Oak. I’ve heard stories from when they were back in high school in the early-mid 1970s about how easy it was to get a job in the auto plants straight out of high school. Crazy how fast things change.

1 Comment so far

  1. Mollika* (unregistered) on September 16th, 2006 @ 5:30 pm

    I am not quite sure if there is any truth to this, but I heard that they now have an escort supply the recently fired with two boxes, remain with them while they pack, and escort them out of the building to avoid any incidents in the heat of the moment.



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