Marketing 101: How 38,000 UAW workers were enticed to leave Ford

**nadepalma** · 12-04-2006, 07:37 AM

SOURCE: http://www.detnews.com/apps/pbcs.dll...12040367/1148/

How 38,000 were enticed to leave Ford
Automaker relied on motivational speakers, marketing techniques to sell workers on buyouts.

Bryce G. Hoffman / The Detroit News

Marketing buyouts

To convince workers to take buyouts packages, Ford used a multipronged strategy:
Executives spoke at plants.
Ford distributed a DVD that included success stories of workers who left the company.
A motivational speaker was hired to talk to workers about pursuing their dreams outside Ford.
Job fairs were held at every plant.
Ford offered eight packages, including a college tuition program.

Norfolk, Va., Ford autoworker David Bacon examines his career options with Capt. John Costen of the Virginia Beach Fire Department. The Border Patrol, FBI and CIA were big draws at the Ford career fairs.

DEARBORN -- Two weeks ago, Brian Chupa and his co-workers at Ford Motor Co.'s Sterling Heights plant listened as a company executive outlined the grim reality facing the automaker and the factory.

It was but the final piece of a remarkable effort by Ford aimed at one unusual goal: convincing as many of its workers as possible to leave.

The rank and file at Sterling Heights had already heard a rousing pep talk by motivational speaker Willie Jolley titled "A Setback Is a Setup for a Comeback." They attended career fairs and met with potential employers from Union Pacific Railroad to the CIA. They were given a DVD that included an ominous review of Ford's condition and upbeat profiles of workers who took buyouts and found success in other fields.

But Chupa was still undecided until the man at the podium started talking about coming budget cuts and layoffs at his factory. "When I heard that, I was pretty much done," Chupa said.

He started doing the math.

With eight years at Ford, Chupa was near the bottom of the seniority list, meaning high on the layoff list. Then there was Ford's offer: a $100,000 lump sum payment -- $68,000 after taxes, but still enough to pay off his debt and take the wife on a nice vacation.

So, like 38,000 other Ford hourly employees, Chupa signed up for a buyout.

The untold story of how Ford convinced nearly half of its U.S. factory work force to head for the exits -- the largest employee exodus in automotive history -- is an amazing mix of sociology, psychology and mass marketing.

In the go-go late 1990s, Ford went to similar lengths to recruit new talent. Now, its survival hinges on cutting its work force to match dramatically reduced demand for its cars and trucks.

Meeting in Vegas

The effort began in March when Ford executives met with UAW leaders at Bally's in Las Vegas. As bets were seen and raised in the casino downstairs, Ford put its own cards on the table.

"We had a very frank and direct discussion of where things were going with Ford and the need for all of our manufacturing facilities to truly be competitive," recalled Joe Hinrichs, Ford vice president of manufacturing in North America.

He and Marty Mulloy, Ford's head of labor affairs, told union officials the automaker was facing the most serious crisis in its 103-year history. It had too many factories and too many workers. Dramatic cuts were needed. "How do we do it together?" they asked.

Ford already was offering buyouts to workers at former Visteon Corp. factories it had taken back in 2005 as part of the deal with its former parts subsidiary and the UAW. The union agreed to extend those buyouts to Ford plants marked for idling as part of its restructuring. Negotiations began on extending them to other facilities.

The talks took on new urgency after General Motors Corp. offered buyouts to all of its U.S. hourly workers and thousands rushed to sign up.

In Dearborn, Ford executives debated whether to follow suit. Initially, the company decided to hold to a more focused approach. But pressure from Wall Street was building as Ford's outlook darkened. Ford met with the UAW in August, and both sides agreed the time had come to throw open the exit doors.

A message to workers

UAW Vice President Bob King summed up the union's position in a message included on the DVD Ford distributed to rank-and-file workers. "Ford is in deep financial trouble -- so serious, I believe, that it has put the hard-earned job security of many of our members at serious risk," he said. "In this immediate crisis, a voluntary work force reduction seems to be our best option."

Early on, the number of workers signing up for buyouts was lower than expected.

Ford decided to inject some science into the process and asked researchers at the University of Michigan-Dearborn to help.

Kim Schatzel, associate professor of marketing, and her team began by surveying more than 2,000 workers from Ford's shuttered factories in Edison, N.J., and St. Louis, Mo., asking why some workers took buyouts and others did not.

"We found their opinions about their own ability to find future employment greatly affected their decision," Schatzel said.

That prompted Ford to offer career fairs at each of its factories.

Schatzel also discovered that many workers were reluctant to commit to a four-year degree program. Some were intimidated by the time commitment; others already had associate's degrees. So, Ford decided to offer a two-year education package with a richer stipend to go along with a four-year education package.

And because the researchers discovered that workers who met with a financial adviser were more likely to take a buyout, Ford decided to make them available to all skilled-trades employees. The number of skilled-trades workers signing up soared.

A new slogan

To market the buyout program, Ford assembled a team drawn from human resources, manufacturing, labor relations and public relations.

Their motto, "You can achieve your dreams," was soon emblazoned on banners hanging from the rafters of every Ford factory; on posters pinned on bulletin boards; and on pamphlets and DVDs distributed to every worker.

In addition to the presentations by King and Mulloy and details of the eight buyout packages, the DVDs included video profiles of seven former Ford workers who had taken buyouts and found greener pastures.

A martial arts instructor talked about following his dreams while performing karate chops on a rubber dummy.

An aging rocker, after breaking into a mean guitar riff, encouraged workers to turn their hobbies into a job like he did when he opened a guitar store.

Finally, a former electrician was shown traversing Harvard Square in the de rigueur polo sweater of an Ivy Leaguer. "I'm now at Harvard studying business," he tells his former union brethren. "I'm proving you can start over."

The Ford team developed a Web site to help workers and enlisted human resources retirees to staff a call center. At one point, it was averaging 200 calls a day.

The FBI is calling

Career fairs were organized at each plant with the help of local colleges, universities and chambers of commerce. Booths of the Border Patrol, FBI and CIA were big draws.

Ford executives like Hinrichs and Mulloy barnstormed plants around the country with UAW officials. Production was halted at factories to allow workers to attend these sobering presentations.

MORE HERE

stevecmh · 12-04-2006, 08:28 AM

wow from Ford to the FBI and the CIA... nice upgrade

69Firebird400 · 12-04-2006, 08:34 AM

Ford did a nice job with these buyouts - showing creativity and cooperation with the UAW, both of which will be critical to the Big Three and the UAW in the coming years.

tgagneguam · 12-04-2006, 09:04 AM

Now, if only Ford (and GM) could build and market cars as well. Ay, there's the rub!

DuSpinnst · 12-04-2006, 09:15 AM

Well it shows that Ford is serious about cutting down the workforce. Hopefully they put as much effort into making great cars, that way they won't have to do this again in the future.

SUPERBADD75 · 12-04-2006, 10:22 AM

i wonder if a company has ever had a job fair to encourage people to leave? this whole thing is inventive and seems to be effective, but it sure is bizarre at the same time. good for Ford though, they may achieve their goal by being creative. why the heck don't they try doing that with their cars?

uboys · 12-04-2006, 10:24 AM

Quote:

Originally Posted by stevecmh

wow from Ford to the FBI and the CIA... nice upgrade

They're government jobs--that's why everybody was drawn to them.

(Of course, not to be so harsh, they would be--since they want job security after working in a hard industry; but you can't ignore how many people ran to the gov't).

stevecmh · 12-04-2006, 10:33 AM

Quote:

Originally Posted by uboys

They're government jobs--that's why everybody was drawn to them.

(Of course, not to be so harsh, they would be--since they want job security after working in a hard industry; but you can't ignore how many people ran to the gov't).

Hell i would want a Gov. Job like that too

GotAWD · 12-04-2006, 11:22 AM

thats some good thinking, i nice lump sum and the ideas i have the buyout would be a nice start.

WishIhadatruck · 12-04-2006, 11:37 AM

Quote:

Originally Posted by DuSpinnst

Well it shows that Ford is serious about cutting down the workforce. Hopefully they put as much effort into making great cars, that way they won't have to do this again in the future.

My thoughts exactly. Lets hope they don't have to repeat this again, ever.

Xenon · 12-04-2006, 12:06 PM

Quote:

Originally Posted by uboys

They're government jobs--that's why everybody was drawn to them.

(Of course, not to be so harsh, they would be--since they want job security after working in a hard industry; but you can't ignore how many people ran to the gov't).

I dont know about you but I see going to a FBI desk job from kicking metal around as an upgrade.

LAMRONH · 12-04-2006, 12:29 PM

Sorry to read about the guy going to Haavahd. There's a screw-up or two in every crowd.

LAMRONH · 12-04-2006, 12:32 PM

Quote:

Originally Posted by uboys

They're government jobs--that's why everybody was drawn to them.

(Of course, not to be so harsh, they would be--since they want job security after working in a hard industry; but you can't ignore how many people ran to the gov't).

The feds have the most secure pensions.

Until an "emergency" comes along, and they have to renege on some...except Congressional and other important people, of course.

Media! · 12-04-2006, 01:18 PM

Did GM hold Job Fairs at plants?

throwback · 12-04-2006, 01:33 PM

Good for Ford. They needed to reduce their work force so they "sold" some of their workers on taking packages. I was layed off once many years ago, my boss called me at home at 11pm told me they had to make cuts, so I was one of them. He then hung up the phone before I could respond. In the non-automotive world, this is not how packages are delivered. Kudos to Ford.

12-04-2006, 07:37 AM	#1 (permalink)
nadepalma GMI Staff Member Join Date: Jan 2003 Location: NJ Posts: 5,633	Marketing 101: How 38,000 UAW workers were enticed to leave Ford SOURCE: http://www.detnews.com/apps/pbcs.dll...12040367/1148/ How 38,000 were enticed to leave Ford Automaker relied on motivational speakers, marketing techniques to sell workers on buyouts. Bryce G. Hoffman / The Detroit News Marketing buyouts To convince workers to take buyouts packages, Ford used a multipronged strategy: Executives spoke at plants. Ford distributed a DVD that included success stories of workers who left the company. A motivational speaker was hired to talk to workers about pursuing their dreams outside Ford. Job fairs were held at every plant. Ford offered eight packages, including a college tuition program. Norfolk, Va., Ford autoworker David Bacon examines his career options with Capt. John Costen of the Virginia Beach Fire Department. The Border Patrol, FBI and CIA were big draws at the Ford career fairs. DEARBORN -- Two weeks ago, Brian Chupa and his co-workers at Ford Motor Co.'s Sterling Heights plant listened as a company executive outlined the grim reality facing the automaker and the factory. It was but the final piece of a remarkable effort by Ford aimed at one unusual goal: convincing as many of its workers as possible to leave. The rank and file at Sterling Heights had already heard a rousing pep talk by motivational speaker Willie Jolley titled "A Setback Is a Setup for a Comeback." They attended career fairs and met with potential employers from Union Pacific Railroad to the CIA. They were given a DVD that included an ominous review of Ford's condition and upbeat profiles of workers who took buyouts and found success in other fields. But Chupa was still undecided until the man at the podium started talking about coming budget cuts and layoffs at his factory. "When I heard that, I was pretty much done," Chupa said. He started doing the math. With eight years at Ford, Chupa was near the bottom of the seniority list, meaning high on the layoff list. Then there was Ford's offer: a $100,000 lump sum payment -- $68,000 after taxes, but still enough to pay off his debt and take the wife on a nice vacation. So, like 38,000 other Ford hourly employees, Chupa signed up for a buyout. The untold story of how Ford convinced nearly half of its U.S. factory work force to head for the exits -- the largest employee exodus in automotive history -- is an amazing mix of sociology, psychology and mass marketing. In the go-go late 1990s, Ford went to similar lengths to recruit new talent. Now, its survival hinges on cutting its work force to match dramatically reduced demand for its cars and trucks. Meeting in Vegas The effort began in March when Ford executives met with UAW leaders at Bally's in Las Vegas. As bets were seen and raised in the casino downstairs, Ford put its own cards on the table. "We had a very frank and direct discussion of where things were going with Ford and the need for all of our manufacturing facilities to truly be competitive," recalled Joe Hinrichs, Ford vice president of manufacturing in North America. He and Marty Mulloy, Ford's head of labor affairs, told union officials the automaker was facing the most serious crisis in its 103-year history. It had too many factories and too many workers. Dramatic cuts were needed. "How do we do it together?" they asked. Ford already was offering buyouts to workers at former Visteon Corp. factories it had taken back in 2005 as part of the deal with its former parts subsidiary and the UAW. The union agreed to extend those buyouts to Ford plants marked for idling as part of its restructuring. Negotiations began on extending them to other facilities. The talks took on new urgency after General Motors Corp. offered buyouts to all of its U.S. hourly workers and thousands rushed to sign up. In Dearborn, Ford executives debated whether to follow suit. Initially, the company decided to hold to a more focused approach. But pressure from Wall Street was building as Ford's outlook darkened. Ford met with the UAW in August, and both sides agreed the time had come to throw open the exit doors. A message to workers UAW Vice President Bob King summed up the union's position in a message included on the DVD Ford distributed to rank-and-file workers. "Ford is in deep financial trouble -- so serious, I believe, that it has put the hard-earned job security of many of our members at serious risk," he said. "In this immediate crisis, a voluntary work force reduction seems to be our best option." Early on, the number of workers signing up for buyouts was lower than expected. Ford decided to inject some science into the process and asked researchers at the University of Michigan-Dearborn to help. Kim Schatzel, associate professor of marketing, and her team began by surveying more than 2,000 workers from Ford's shuttered factories in Edison, N.J., and St. Louis, Mo., asking why some workers took buyouts and others did not. "We found their opinions about their own ability to find future employment greatly affected their decision," Schatzel said. That prompted Ford to offer career fairs at each of its factories. Schatzel also discovered that many workers were reluctant to commit to a four-year degree program. Some were intimidated by the time commitment; others already had associate's degrees. So, Ford decided to offer a two-year education package with a richer stipend to go along with a four-year education package. And because the researchers discovered that workers who met with a financial adviser were more likely to take a buyout, Ford decided to make them available to all skilled-trades employees. The number of skilled-trades workers signing up soared. A new slogan To market the buyout program, Ford assembled a team drawn from human resources, manufacturing, labor relations and public relations. Their motto, "You can achieve your dreams," was soon emblazoned on banners hanging from the rafters of every Ford factory; on posters pinned on bulletin boards; and on pamphlets and DVDs distributed to every worker. In addition to the presentations by King and Mulloy and details of the eight buyout packages, the DVDs included video profiles of seven former Ford workers who had taken buyouts and found greener pastures. A martial arts instructor talked about following his dreams while performing karate chops on a rubber dummy. An aging rocker, after breaking into a mean guitar riff, encouraged workers to turn their hobbies into a job like he did when he opened a guitar store. Finally, a former electrician was shown traversing Harvard Square in the de rigueur polo sweater of an Ivy Leaguer. "I'm now at Harvard studying business," he tells his former union brethren. "I'm proving you can start over." The Ford team developed a Web site to help workers and enlisted human resources retirees to staff a call center. At one point, it was averaging 200 calls a day. The FBI is calling Career fairs were organized at each plant with the help of local colleges, universities and chambers of commerce. Booths of the Border Patrol, FBI and CIA were big draws. Ford executives like Hinrichs and Mulloy barnstormed plants around the country with UAW officials. Production was halted at factories to allow workers to attend these sobering presentations. MORE HERE __________________ Email: nadepalma@gminsidenews.com "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!" "You cannot help men permanently by doing for them what they could and should do for themselves" -Abraham Lincoln "Democracy is the worst form of government except for all those others that have been tried" -Winston Churchill "In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a Congress" -John Adams

12-04-2006, 08:28 AM	#2 (permalink)
stevecmh 5.3 Liter LS4 V8 Join Date: Oct 2003 Location: Muskego, WI Drives: 04' Grand Prix GT 03' Pierce Saber Fire Engine Posts: 3,257	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford wow from Ford to the FBI and the CIA... nice upgrade

12-04-2006, 08:34 AM	#3 (permalink)
69Firebird400 7.0 Liter LS7 V8 Join Date: Sep 2005 Location: Philadelphia Area Drives: 08 CTS DI RWD Nav, 08 Sienna Limited AWD Nav Posts: 5,639	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Ford did a nice job with these buyouts - showing creativity and cooperation with the UAW, both of which will be critical to the Big Three and the UAW in the coming years. __________________ Autosavant Cars and Technology

12-04-2006, 09:04 AM	#4 (permalink)
tgagneguam 7.0 Liter LS7 V8 Join Date: Aug 2003 Posts: 6,936	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Now, if only Ford (and GM) could build and market cars as well. Ay, there's the rub!

12-04-2006, 09:15 AM	#5 (permalink)
DuSpinnst Starship Enterpise Join Date: Jul 2005 Posts: 17,211	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Well it shows that Ford is serious about cutting down the workforce. Hopefully they put as much effort into making great cars, that way they won't have to do this again in the future. __________________ The moderation here gets an F for FAILURE.

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12-04-2006, 10:22 AM	#6 (permalink)
SUPERBADD75 6.2 Liter Vortec V8 Join Date: Dec 2003 Location: at the corner of walk and don't walk Drives: 2008 Trailblazer LT3 2009 Mustang Posts: 2,899	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford i wonder if a company has ever had a job fair to encourage people to leave? this whole thing is inventive and seems to be effective, but it sure is bizarre at the same time. good for Ford though, they may achieve their goal by being creative. why the heck don't they try doing that with their cars? __________________ Acura: Because if you want a really nice Honda, there's only one choice. "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." --Albert Einstein - 2008 Trailblazer LT3 - 2009 Mustang SUPPORT AMERICA: BOYCOTT WAL-MART

12-04-2006, 11:22 AM	#9 (permalink)
GotAWD 3.6 Liter V6 Join Date: Jan 2003 Posts: 1,028	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford thats some good thinking, i nice lump sum and the ideas i have the buyout would be a nice start.

12-04-2006, 12:29 PM	#12 (permalink)
LAMRONH 7.0 Liter LS7 V8 Join Date: Nov 2004 Location: Caveville, Neanderthallande Drives: 2007 black KIA Spectra EX. Have club, will travel. Posts: 8,947	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Sorry to read about the guy going to Haavahd. There's a screw-up or two in every crowd. __________________ The national budget must be balanced. The public debt must be reduced; the arrogance of the authorities must be moderated and controlled. Payments to foreign governments must be reduced, if the nation doesn't want to go bankrupt. People must again learn to work, instead of living on public assistance. Cicero (106 BC - 43 BC), 55 BC

12-04-2006, 01:18 PM	#14 (permalink)
Media! 3.8 Liter V6 Join Date: Jul 2006 Posts: 365	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Did GM hold Job Fairs at plants?

12-04-2006, 01:33 PM	#15 (permalink)
throwback 3.9 Liter V6 Join Date: Oct 2006 Posts: 978	Re: Marketing 101: How 38,000 UAW workers were enticed to leave Ford Good for Ford. They needed to reduce their work force so they "sold" some of their workers on taking packages. I was layed off once many years ago, my boss called me at home at 11pm told me they had to make cuts, so I was one of them. He then hung up the phone before I could respond. In the non-automotive world, this is not how packages are delivered. Kudos to Ford.

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