Ford India on Thursday officially announced that the company has agreed with the employees’ union of its Chennai plant. However, to appease workers, the US carmaker’s final revised severance package for its employees ranges from a minimum amount of Rs 34.5 lakh to a maximum of Rs 86.5 lakh.
Expansion
Ford India on Thursday officially announced that the company has agreed with the employees’ union of its Chennai plant. However, to appease workers, the US carmaker’s final revised severance package for its employees ranges from a minimum amount of Rs 34.5 lakh to a maximum of Rs 86.5 lakh.
According to the company, its revised package will equal an average salary of about 5.1 years or 62 months for each employee. The formal settlement agreement is planned to be implemented before the end of this month. Ford will notify employees of the following steps and aims to complete the exit formalities by September 30, 2022. The company will continue to pay salaries to all employees for exit formalities till the end of this month.
Ford India
Ford India – Photo: For Reference Only
Ford India says it is grateful for the support of the Chennai Ford Employees Union (CFEU) and the Tamil Nadu government and labor authorities. “Since announcing the business restructuring last September 2021, Ford has made consistent efforts to negotiate a fair and reasonable severance package and is pleased to have reached an agreement with the union,” the company wrote in its official letter.
It further said, “As per the agreed agreement, the company will revise the final severance settlement equal to an average of 140 days of gross pay per year of service from the current offer of 130 days. The final settlement will also include an additional lump-sum amount of Rs 1.5 lakh. Will be included.”
Ford India – Photo: For Reference Only
The letter further said, “The cumulative severance amount for each employee shall be a minimum amount of Rs 34.5 lakh and a maximum limit of Rs 86.5 lakh (i.e., an average of Rs 44.8 lakh per employee). The revised agreement will be about 5.1 years or 62 months for each employee.” (minimum 3.9 years, i.e., 47 months to maximum 8.7 years, i.e., 105 months).”
It was essential to know here on September 9, 2021, and Ford Motor Company decided to discontinue local vehicle manufacturing in India as part of its global restructuring plan. The company had two plants in India. The EV subsidiary of Tata Motors has now bought its Sanand (Gujarat) plant. But Ford has not found a buyer for its Chennai plant and will retain ownership of its land and machinery.
