Ford Motor has stated that about 1,700 employees have agreed to an offer of early retirement, which means they will leave the company on June 1 this year.

The company had completed the negotiation on the early retirement plan with the United Auto Workers union, who represent about 41,000 employees in the firm. According to the negotiated plan, there will be a separate package consisting of $50,000 and $100,000 for the production workers and skilled-trades workers, respectively. Skilled-trades workers include employees such as electricians and plumbers.

Marcey Evans, Ford spokeswoman, has said that among those who accepted the early retirement plan, nearly 920 were high paid skilled-trades workers.

The acceptance of the plan will mean that Ford will be in a position to hire new workers at the entry level at half wages which are given to a senior employee with UAW union.

Evans has added that there will not be a replacement for every employee who is retires. There is a plan to re-hire 250 of the laid-off workers. At the same time, Evans has reported that there is also a plan as of now to add 5,500 new workers with the demand for cars increasing in the U.S.

According to the projection of the company, nearly 8 percent of the total workforce of the company will comprise lower paid workers by 2015.