Ford and Chennai Plant workers union agree on final severance package

The cumulative severance for each employee will range from a minimum amount of Rs 34.5 lakh and a maximum cap of Rs 86.5 lakh.

Autocar Pro News Desk By Autocar Pro News Desk calendar 23 Sep 2022 Views icon4367 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Ford and Chennai Plant workers union agree on final severance package

Eighteen days after it rolled out its final severance offer to workers at its Chennai plant, Ford India has issued a statement that it has arrived at a final settlement with the Chennai Plant workers union.

As is known, Ford Motor Company announced its plan to stop manufacturing operations in India on September 9 last year. Ford India wound up all manufacturing operations in the country with the last car – an EcoSport – being produced at its Maraimalainagar plant in Chennai on July 21, 2022.

As per the final severance package agreement, the company “will revise the final severance settlement to an average equivalent of 140 days of gross wages per completed year of service from the ongoing offer of 130 days. An additional one-time lump sum of Rs 150,000 will also be included in the final settlement.”

The cumulative severance for each employee will range from a minimum amount of Rs 34.5 lakh and a maximum cap of Rs 86.5 lakh. The revised settlement will translate to an average of about 5.1 years or 62 months of salary for each employee, the company said.

The formal settlement agreement is planned to be executed before the end of September 2022.

 

RELATED ARTICLES
Auto industry walks the safety talk at ICAT’s ADAS Show

auther Autocar Pro News Desk calendar08 Dec 2023

Forty-five companies including leading OEMs, Tier-1 manufacturers, as well as startups showcased their promising solutio...

Revealed: India-bound new Maruti Swift engine details

auther Autocar Pro News Desk calendar07 Dec 2023

New Swift’s Z12E engine gets pure petrol and mild hybrid options abroad; India launch in 2024.

Suzuki Motor Gujarat plant rolls out three-millionth car

auther Autocar Pro News Desk calendar06 Dec 2023

The three-plant facility which has a 750,000-units-per-annum capacity clocks new production milestone 6 years and 11 mon...