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Executive: Ford could exceed 12,000 workers pledge

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Executive: Ford could exceed 12,000 workers pledge

The company’s top US executive considers Ford, the second biggest US automaker could soon exceed its 12,000 new workers goal negotiated in a 2011 contract with the United Auto Workers.

Ford announced it has completed around 75% of its committed 12,000 workers by 2015 plan, just as it disclosed that its Claycomo, Missouri, plant, where the automaker invested $1.1 billion has raised its employee tally by 2,000. The workforce is needed to add the Transit cargo van production next to the F-series pick-up trucks.

“The business has grown faster than we predicted it would in 2011,” said Joe Hinrichs, Ford’s president of the Americas. The company’s hiring “is definitely ahead of schedule and there’s a high probability we’ll overshoot” the 12,000 hourly jobs contract.

At the end of 2011, when it signed a four-year agreement with the UAW, the company had 75,000 employees in North America and at the end of 2013 it reached 84,000.

“The 2,000 new jobs and hiring we’ve done here has certainly increased the entry level percentage here, which lowers the blended costs of labor and overhead,” Hinrichs said at the Claycomo plant. The lower wages “has been an important part of the more competitive cost structure in North America.”

The build up of workforce is connected to the surging profits in the North American region and also to the 23 new models released globally this year, including an all-new Ford F-150 pick-up truck and a new version of the 50 years old Mustang muscle car.

Via Bloomberg

by Aurel Niculescu (my Google+) - Thursday, May 1st, 2014 - filed under Ford, Industry, News. Image credit: .
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