More than 2,000 workers at Ford’s car factory near Chennai are demonstrating to demand better severance pay for them over a bleak future for the factory and re-employment.
As employees clamor for better settlement deals, the recent development of Tata Motors buying Ford’s Sanand plant appears to have raised concerns. “Employees are now protesting inside and outside the Chennai factory,” a senior union official said. Activity area.
Last year, the US automaker announced its decision to shut down its nearly three-decade-old car manufacturing business in India. It also said it would end production at the Chennai plant by the second quarter of 2022. Ford made cars in Chennai and Sanand (Gujarat).
Efforts by the Tamil Nadu government to facilitate the takeover of the Ford plant by other automakers or new investors have so far yielded no results.
As the deadline for the Chennai plant draws near and there is no glimmer of hope for the unit to be taken over by new investors, employees are seeking better settlement packages.
“While the fate of the Chennai plant remains undecided, the sale of Ford’s Sanand plant has caused more concern among employees and they feel let down by the US automaker. Moreover, even if the company is taken over by a new player, the new investor may or may not hire all the Fords, in case he wishes to hire newcomers for lesser salary packages. Additionally, staff over the age of 40 will face more challenges. Thus, re-employment is not guaranteed for workers at the Ford plant in Chennai, in the event of a takeover by a new player. Therefore, Ford management has a valid reason to provide appropriate settlement packages. But they have not come to an agreement so far,” the union official stressed.
Meanwhile, Ford’s recent decision to scrap plans to make electric vehicles, which it indicated last year, has also shocked workers.
Ford India recently said, “After careful consideration, it has decided to no longer pursue the manufacture of electric vehicles for exports from any of the Indian factories. We continue to work closely with unions and other stakeholders to deliver a fair and balanced plan to mitigate the impacts of restructuring
June 01, 2022