Ford Workers Wish For Better Dissolution Package At Next Meeting

Ford employees hope for better Dissolution Package at Tripartite meeting on September 13.The development comes in the backdrop of the recent announcement by Ford India which had said that it has continuously made efforts to negotiate a 'fair and reasonable' severance package with the union, spanning 68 meetings including discussions with senior government officials soon after the company's business restructuring exercise was announced in September 2021. 

"The factory has been shut since August 31 and so far no employees are present at the unit now. Only businesses like after sales (service), sale of parts are being done now. We are not even allowed to enter the factory. They are just asking us to accept the offer they have made," a union representative said. 

"They have also sent a copy of the severance package settlement as a courier to the residences of the employees so that the family will also accept it," an employee, who has been serving for 19 years at the Maraimalai Nagar factory situated about 50 km from here, said. 

"Our main point is that the severance package announced by the company is not acceptable. We are discussing on September 13 in the presence of district labour authorities on these issues," the employee said. 

According to Ford, "the company has decided to roll out the final severance settlement offer to employees which on average is equivalent to 130 days of gross wages per completed year of service." 

"With a cumulative average severance of Rs 41 lakh per employee (from a minimum amount of Rs 33 lakh and a maximum cap of Rs 85 lakh), the final severance settlement offer translates to an average of about 4.6 years-56 month salary for each employee, assuring employees with adequate financial cushion and adequate time to decide their next action," the statement said. 

Ford also clarified that post the deadline of the severance package, if the company were to retrench workers, the employees would only be entitled to severance pay of 15 days per completed year of service.