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Workers at Ford India’s Chennai plant have been on strike since May 30 demanding better severance pay.
Workers at Ford India’s Chennai plant have been on strike since May 30 demanding better severance pay.
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Ford India has informed its workers at the Chennai plant that if the workers do not resume production from June 14, there is a high probability that the company will have to stop production of the remaining export volumes and stop production of vehicles.
It is known that the company has very little export production left unfinished. Sources said it has been put up on company notice boards in Chennai and a copy has been sent to unions and the labor department. Workers at the Chennai plant have been on strike since May 30 demanding better severance pay.
A view of Ford India Ltd’s automotive unit in the Maraimalai Nagar Chengalpattu area. | Photo author: VELANKANNI DISTRICT
In a statement, the company said: “In light of the current situation, the company wants permanent employees willing to support production to know that the company invites you to choose its best severance package, which is approximately equal to 115 days of gross salary for each completed year of service (on average). As you may note, this package is significantly higher than the statutory severance pay (i.e. 15 days’ salary for every year worked).
Details of the package are known to be: an ex gratia amount equivalent to 87 days of last drawn gross salary as on May 2022 and a fixed amount of ₹50,000, both for each completed year of service in actuality. The benefits equivalent to a lump sum of ₹ 2,40,000 and the current medical cover will be valid till March 2024 as per the existing policy terms. The package is in addition to the statutory gratuity and holiday contributions in accordance with the applicable terms and conditions. Years of service are counted from the day the employee joined the company as a trainee (not as a trainee).
Ford has made it clear that the announced package is only available to permanent employees who will continue production from June 14, 2022 and support the company in meeting the production schedule. Employees who wish to opt for the above severance pay are required to submit their severance pay request by logging into the online portal (the link is distributed to the employees on the notice board) and filling the form on the portal, by or on or before 5:00 PM on 13 June 2022. If the employee does not opt for severance pay, the company is forced to take legal steps/procedures.
“For employees who continue to strike illegally or engage in unauthorized/illegal activities on company premises, the company will take appropriate action, including imposing wage loss in accordance with approved standing orders and applicable laws,” the company said in a statement. communication with employees.
On 9 September 2021, Ford announced that it would cease vehicle production at the Chennai plant by June 2022 due to significant accumulated losses and an inability to find a sustainable way forward. Currently, Ford’s Chennai plant employs around 2,600 permanent hourly workers engaged in vehicle assembly and powertrains.
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