Ford India has said that one addition once synthesis 1.50 lakh will also be included in the final settlement.
Ford On Thursday, India announced that it had reached an agreement on a severance package with the union of workers following the decision to close the factory in Tamil Nadu as part of the restructuring process. The company has announced that it will revise its final severance settlement to an average equivalent to 140 days of gross pay for each completed year of service from a continuous offer of 130 days.
The company said that a one-time addition of 1.50 lakh will also be included in the final settlement. Therefore, the cumulative severance package for each employee of Ford India will range from 34.50 lakh up to 86.50 lakh while the revised finalization would translate to an average of around 5.1 years or 62 months salary per employee.
A formally revised severance settlement is scheduled to take place before the end of this month, and employees will soon be informed of the next steps to complete exit procedures. Furthermore, the company said it will continue to pay employees until September 30 to assist with exit procedures.
Ford India, in its statement, also said that it remains grateful to the union, the Tamil Nadu government and labor officials for their support. In September last year, the company announced the cessation of operations here and said it would only sell imported cars in the Indian market.
The automaker has stopped making vehicles like EcoSport, Figo and Longing for the Indian market. In July this year, the company rolled out the last production vehicle from the assembly line at its Maraimalai Nagar facility, about 45 kilometers from Chennai.
Ford India factory has been closed since August 31 and so far, there are no employees present at this unit.
(with input from PTI)
First published date: September 22, 2022, 14:28 PM IST