Ford sets June 14 deadline for Chennai employees to resume production

Author: Nishu June 10, 2022

The employees of Ford India’s Chennai plant have been on strike since May 30, demanding a better severance package.

The employees of Ford India’s Chennai plant have been on strike since May 30, demanding a better severance package.


Ford India has informed its employees at its 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 volume and stop vehicle production. Will have to do

It is learned that the export output of the company is very limited which is yet to be met. According to sources, it has been pasted on the notice board of the company in Chennai and its copy has been sent to the unions and labor department. The employees of the Chennai plant have been on strike since May 30, demanding a better severance package.

A view of Ford India Limited, an automobile manufacturing industry unit at Maraimalai Nagar in Chengalpattu district. , Photo Credit: Velankanni Raj

The company stated in its notice: “In the light of the prevailing circumstances, the company would like the permanent employees, who are willing to support the production, to be aware that the company invites you to opt for its best offer on severance package. Which is approximately equal to 115 days of gross pay for each completed year of service (on average). As you can note, this package is the statutory severance package (ie 15 days of wages for each completed year of service) is much more than .

It is learned that the details of the package are – an ex-gratia amount equal to 87 days of last drawn gross wages till May 2022 and a fixed amount of Rs. 50,000, both in actual for each completed year of service. Profits equal to a lump sum amount of Rs. 2,40,000 and the current medical insurance coverage will continue till March 2024 as per the existing policy terms and conditions. The package is in addition to the statutory benefits of gratuity and leave encashment as per the applicable terms and conditions. The years of service will be counted from the date the employee joined the company as an apprentice (not an apprentice).

Ford has clearly indicated that the announced package will be available only to permanent employees who resume production from June 14, 2022 and support the company in meeting the production schedule. Employees who wish to opt for the above severance package are required to submit their request for severance package, by logging into an online portal (link has been shared for employees on the notice board) and filling up the form given in the portal. Is. Before 5 PM on June 13, 2022. If the employees do not opt ​​for the severance package, the company will be forced to take legal steps/action.

The company in its statement said, “For employees who indulge in illegal strikes, or engage in unauthorized/unlawful activities in the company premises, the company shall take appropriate action, including certified standing orders and loss of wages as per applicable legal provisions. ” communication to employees.

On September 9, 2021, Ford announced that it would shut down vehicle manufacturing operations at its Chennai plant by June 2022 due to significant accumulated losses and its inability to find a sustainable way forward. Currently, Ford’s Chennai plant has approximately 2,600 permanent hourly workers in vehicle assembly and powertrain operations.

10 June, 2022, 12:00 pm

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