Ford India has resumed operations at its Chennai, Tamil Nadu manufacturing plant after some of its employees consented to work. This comes following a strike by a group of employees on May 30 to demand a greater severance package. According to PTI, more than 300 employees have consented to resume production, and operations have begun in double shifts. Employees, on the other hand, told the publication that just 100-150 people out of a total of 2,600 have started work.
The manufacturer also said that it has completed a pay cut for employees who continue to strike in violation of the Certified Standing Orders, which took effect on June 14. “Several personnel have reported for duties. There were maybe 100-150 of them. Others who were on strike inside the plant have now left and are continuing their walkout outside…, “According to the publication, a union member said.
Ford India has stated that the severance payout will only be given to employees who return to work and work with the company to fulfil the production schedule, as the company only has a little amount of export manufacturing left to accomplish. It also cautioned workers still on strike that the corporation would have to take tougher measures, which would result in the suspension of remaining export volumes and the end of vehicle production in the country.
Some employees are still waiting for answers to their questions about the severance payment and are demanding extra time to provide their approval to resume work. Ford has opted to extend the deadline for submitting the form, which was originally set for June 18. On June 20, a meeting between management and employees has been scheduled in the presence of the Deputy Commissioner of Labour.
For each completed year of employment, Ford India is now offering severance packages worth about 115 days of gross salary. In addition, the total package includes an ex gratia payment equal to 87 days of last-drawn gross salary as of May 2022, a fixed 50,000 for each completed year of service benefits (equivalent to a lumpsum payment of 2.40 lakh), and current medical insurance coverage until March 2024.
Last year, Ford announced its exit from India, announcing that it would cease local production and only sell high-end vehicles in the country via import.