Ford Paying $187,500 Severance to Hourly Workers from Genk, Belgium

FordFordUnited Kingdom, 1909 > present33 models
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5 videos
will pay $750 million in severance pay to the hourly workers from its Genk, Belgium, factory when it closes in 2014. The severance works out to an average of $187,500 to each of the 4,000 hourly workers. 

The workers will be paid their severance over the next several months so that Ford can spread the cost out over several financial quarters. 

The Genk factory currently builds the MondeoFord Mondeo Gen.4United Kingdom, 2007 > 2013244 versions
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, S-MaxFord S-MaxUnited Kingdom, 2006 > 201365 versions
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and GalaxyFord Galaxy Gen.3 [Mark III]United Kingdom, 2006 > present50 versions
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. Mondeo production will be moved to Valencia, Spain. 

“We are pleased to have reached a social plan agreement that was accepted by the unions and approved by the hourly employees at Genk. We fully recognize that this has been a difficult time for everyone at the Ford Genk plant, our suppliers and the local community," said Philippe Verbeeck, Operations Manager of the Ford Genk factory.

Ford is closing the Genk factory and two others in Britain to deal with lower sales and losses. It is part of Ford's goal to reduce production capacity by 18%.

Ford is still in negotiations with the factories 300 salary workers for their severance package. 

Comparatively, the payout is low. When General MotorsGMUnited States of America, 1998 > present8 models
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closed its factory in Antwerp, Belgium, it paid hourly workers an average of $202,700.

Source: Automotive News Europe