Ford India Made A Decision For Settlement Packages For Employees

Latest Updated on 9 January 2023

Ford India a company of the American Automobile Ford said on Thursday that it has come to an agreement with the workers union about the severance package following the company's decision to down its facility in Tamil Nadu as part of a restructuring exercise.

As a result, the business would modify the current offer of 130 days to an average value of 140 days of gross wages for each completed year of employment in the final severance settlement.

The final payment would also include an extra one-time lump amount of Rs. 1.50 lakh. In a statement Ford India stated.

The new settlement would amount to an average of around 5.1 years or 62 months' salary for each employee with a cumulative severance package for each employee ranging from Rs 34.50 lakh to Rs 86.50 lakh.

As per Ford India, the official settlement agreement will be taken out by the end of this month and employees will be informed of the next steps that must be taken in order to complete the exit formalities.

The company will continue paying payments to workers until September 30 in order to speed up the exit formalities and it was thankful for the union's support as well as that of the Tamil Nadu Government and labor officials based on the statement.

Ford India stated in September 2021 that it will cease operations there and only sell foreign cars going the future. EcoSport, Figo, and Aspire manufacturing have already been stopped by the business.

In July, the company's final production vehicle went off the assembly lines at the Maraimalai Nagar Factory which is located 45 kilometers away.

Last Updated on 25 September 2021

Ford was on the verge of announcing a package of settlement with the employees on the decision made to shut down its two manufacturing facilities in India. They have also mentioned that they will only sell imported vehicles. After investing $2.5 billion at plants in Chennai and Sanand, they have planned to stop selling transports like Figo, EcoSports, and Aspire. They have conducted a discussion with the auto parts suppliers over possibilities related to safeguarding the employee’s daily activities for their livelihood. They have made the announcement of closing the plant by 2022. It will be a big hit after the exit of Ford as the lands were leased from Ford for producing auto parts.

A senior official mentioned that about 300 employees were in their way of seeking Rs. 25 crore as claims from Ford due to their sudden decision of shutting down. Companies that were only supplying their parts to Ford are going to undergo a huge loss. Ford mentioned that they will be taking care of the situation by working with the stakeholders and unions to take respective measures when it comes to balancing the impact for those people who will be directly impacted by this shake-up by restructuring.