Ford India makes final severance package offer to Chennai factory workers

As per the firm, the negotiation talks have not yielded any results due to the unreasonable demands of the unions


Ford India has offered a final severance package to its workers at the Company’s Chennai factory unit. The package includes 130 days of gross wages per completed year in the Company.

Earlier, the Company had offered 115 days of gross wages per year of service, which was then revised to 124 days of gross wages per year of service.

The employee union did not agree to either of the offers. As per Ford, basis the newly revised offer, the average severance package of each employee would amount to Rs 41 Lakhs. The minimum severance amount will come to Rs 33 Lakhs and the maximum to Rs 85 Lakhs.

This is the final offer rolled out by Ford India and is valid from 5 to 23 September, 2022. Employees who agree to this offer, will get their wages up to September 30. The company is encouraging the employees to take the offer.

In a letter to employees, Ford India states that post the deadline of 23 September, if the Company is forced to retrench the employees, then the laid off workers will only be entitled for a severance package of 15 days of gross wages per year of service.

The Company blames the unions for the failed negotiation attempts. The unions demanded 215 days of gross wages per year served in the Company, which the firm termed as unreasonable. In the very beginning, the Company offered a severance package of 87 days of gross wages per year served in the company. Post this offer, more than 2000 workers at Ford India demonstrated outside the Maraimalai Nagar factory in Chennai.

The final settlement offer communicated by Ford India is higher than the industry benchmark says the firm.

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