Ford India prepares ‘non-negotiable’ severance package for workers

.

.

.

Putting a new twist on the strike of Ford India employees at the company’s Maraimalai Nagar plant, the company has set a Monday evening deadline for workers to accept the ‘non-negotiable’ severance package it offers. It also points to possible legal action against workers from June 14 (Tuesday) and warns of premature closure of units, before finalizing the remaining export production volumes.

.

Over the past 14 days, about 2,000 employees in the unit have been working, looking for a better package from the company. Under the new package, whose acceptance deadline is Monday, employees are offered 115 days of gross pay for each year of work completed. The company claims the package will be significantly higher than the statutory severance package or 15 days’ wages for each year of service completed. One union leader told Business Standard that workers were not prepared to accept it, as it was offered without union approval.

.

Through notification to employees, the Union was notified that the package would only apply to those who resumed production on June 14 (Tuesday) and supported the company in completing the production schedule. Employees wishing to select packages are requested to inform management of their acceptance by June 13 at 17.00.

.

The package offered includes an ex-gratia amount equivalent to 87 days of the last gross salary withdrawn (May 2022) and a fixed amount of Rs 50,000, both for each year of work completed. In addition, a benefit equivalent to a lumpsum amount of Rs 2,40,000 and continuation of current health insurance until March 2024 is offered. As per notification, the cumulative amount for the specified components will be subject to a minimum amount of Rs 30 lakh and a maximum limit of Rs 80 Lakh.

.

“The above packages are non-negotiable, and the terms of this notice should not be construed as part of any terms of service. If the employee does not opt ​​for the severance package, the company will be forced to take legal steps/processes,” the notice added.

.

Ford Motor Company announced in September last year that it was closing its plant in India. The next round of talks between United and management is on June 14, the date on which the company intends to restart production. When protests broke out inside the factory site, employees were told that only those willing to support production would be allowed into the factory area from Tuesday. The company also warns about taking appropriate action against those who continue the ‘illegal strike’ inside the factory site, even making the option of forfeited pay apply.

.

“The company has very limited remaining export production to complete. If employees do not resume production from June 14, it is likely that the Company will be asked to stop production of the remaining export volumes and close production of vehicles,” the information added to employees.

Dear Reader,

Business Standard always strives to provide up-to-date information and commentary on developments that interest you and have broader political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offerings only makes our determination and commitment to these ideals even stronger. Even during these difficult times due to Covid-19, we remain committed to providing you with up-to-date and credible news updates, authoritative views and sharp comments on relevant relevant issues.
We, however, have a request.

As we battle the economic impact of the pandemic, we need more of your support, so we can continue to offer you more quality content. Our subscription model has seen encouraging responses from many of you, who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goal of offering you better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice journalism to which we are committed.

Support quality journalism and subscribe to Business Standards.

Digital Editor

.

Leave a Comment