Ford India Resumes Production For Exports At Its Tamil Nadu Plant

Ford has resumed production at its Tamil Nadu plant after a majority of its employees consented to resume their work. The workers had been on a strike since May 30 demanding a better severance package. According to a PTI report, Ford India said more than 300 employees gave their consent to resuming production and the plant has resumed operation in double shifts from June 14. However, only around 150 of them out of the total 2,600 workers have joined to commence work.

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In a statement to PTI, Ford India said, ''The Chennai plant has resumed operation in double shifts with effect from June 14. More than 300 people gave their consent to resuming production and it continues to increase.'' ''For employees continuing to be on an illegal strike, a loss of pay as per the Certified Standing Orders has come into effect with effect from June 14."

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Ford will continue to export vehicles from India.

Except those 150 employees, other workers who were striking inside the factory have now come out of the unit and are continuing the strike outside. Ford said the severance package would only be available to those employees who resume production from June 14 and support the company in completing the production schedule. The company also said it has very limited export production left to complete and warned that if employees do not resume production from June 14, there is a 'high likelihood' that the company would be required to call off production of remaining export volumes and bring vehicle production to a close.

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On the severance package, the union official told PTI that his colleagues were yet decide and were keen on discussions with the management for a better severance package. In reply, Ford said that many of its employees are having ongoing queries about the severance package offer and requesting more time for giving consent. The company has decided to extend the last date for submission of the form to 5 pm on June 18.

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Ford India said that it has offered severance packages for approximately 115 days of gross wages for each completed year of service (of an employee) which was significantly higher than the statutory severance package. The cumulative package accounts to an ex gratia amount equivalent to 87 days of last drawn gross wages as on May 2022, a fixed Rs 50,000 for every completed year of service benefits equivalent to a lump-sum amount of Rs 2.40 lakh and current medical insurance coverage until March 2024. 'The cumulative amounts will be subject to a minimum amount of Rs. 30 lakh and a maximum cap of Rs. 80 lakh. Employees who continue with the strike, the company said that it will take appropriate actions, including imposing loss of pay, as per applicable legal provisions.