Ford India workers unhappy with severance package, demand higher compensation

The workers at Chennai factory are protesting since Monday

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About 2000 protesting workers, of Ford’s Chennai plant, who were eagerly awaiting the announcement regarding their severance package, were disappointed with what was offered to them. The package that the management has offered to pay has made these laid off workers unhappy.

As an initial offer, the Company is granting them 87 days’ wages for every year that they have worked in addition to an ex-gratia amount, which will be an average of Rs 20 lakh, or even more depending on the number of years worked.

However, the workers are not satisfied with this offer. The unions have demanded 385 days’  wages for every year worked. In fact, the workers are quite clear that they will continue the strike and are pressurising the management to at least increase 50 to 60 days in the presently offered 87 days’ wages per year, if they wish to hold any further discussions.

If there is a total break down in the conversation, the labour department will have to intervene and start the conciliation process between the management and the employees.

The employees are also demanding jobs since the laid of employees at Ford’s Gujarat factory have been absorbed by the Tata Group.

The workers in Chennai factory have been protesting since Monday,30 May, 2022.

In September 2021, Ford India had announced that it would wind down its operations in India, which would result in approximately 4000 workers being laid off. It was announced that the Company’s Sanand plant in Gujarat would shut down in the last quarter of 2021 and the Chennai vehicle and engine plant by the second quarter of 2022.

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