Ford urges workers’ union to end benefits impasse | Rare Techy


The impasse over the compensation package for Ford Chennai workers continues as the US carmaker and its Chennai plant union are yet to agree on a final compensation package.

In the ongoing stalemate, Ford stopped its car production at its Maraimalai Nagar plant near Chennai on July 20 as part of its plan to exit vehicle production in India. However, it will continue to manufacture certain vehicle parts until next month.

“The last date for FCSD (Ford Customer Service Division) production activity is August 31,” the company said.

Compensation package

As a result of discussions between Ford management and the union (43 meetings with the union and 17 meetings with labor authorities, the company claimed), the company agreed to offer 124 days of average equivalent pay. for years of service (minimum ₹30 lakh and maximum ₹80 lakh).

The company claimed that its offer was significantly higher than the compensation provided for in the Industrial Disputes Act 1947. The company also agreed to continue the health insurance until March 2024 in accordance with the current policy conditions.

Workers union claim

On July 20, the Chennai Ford Employees Union (CFEU) sought a revised benefits package. The Union’s revised demands included an average equivalent pay of 185 days for each completed year of service calculated on the basis of 26 days per month, inclusion of internship period in a year of service and establishment of a minimum package of ₹50 lakh and ceiling. maximum package.

However, Ford described the union’s revised demands as “not significantly different from the previous unreasonable demand.” But a CFEU representative said Business line that they have already reduced their demand from 295 days to 185 days which is reasonable and they are willing to discuss it with the company to reach a final solution.

“We are ready to discuss a revised compensation package with the company. But they have not made any counter offer to our revised demands,” he added.

“If the union does not come to finalize the conditions, the company will be forced to launch its offer as a VSS package for employees. In addition, the company will no longer engage in further bilateral discussions and will take appropriate legal procedures as the next steps,” the statement said.


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