Ford India resumes production at Tamil Nadu factory in double shifts

Ford India has resumed production at its Chennai, Tamil Nadu manufacturing plant after some of its employees agreed to work. This comes after a section of employees went on a strike on May 30 demanding for a better severance package. As per the automaker, more than 300 members of the staff have agreed to resume production and operations have started in double shifts, PTI reported. However, employees told the publication that only 100-150 members out of the total about 2,600, have joined work.

The automaker also said that it has finalized a loss of pay as per the Certified Standing Orders for employees that continue to be on an illegal strike, which has come into effect from June 14. "Some employees have joined duty. About 100-150 of them. Others who were striking inside the factory have now come out of the unit and continue the strike outside...," a union member told the publication.

Ford India has said that the severance package would only be provided to the employees who resume production and cooperate with the company in completing the production schedule as it has very limited export production left to complete. It also warned those still on strike that the company will have to take stricter action, resulting in calling off production of remaining export volumes and bring vehicle production to a close in the country.

Some employees are still getting their queries on the severance package resolved and are requesting for more time for giving their consent for resuming work. Ford has decided to extend the last date for submission of the form provided by June 18. A meeting has been fixed between management and the employees in the presence of the Deputy Commissioner of Labour on June 20.

Currently, Ford India is offering severance packages for approximately 115 days of gross wages for each completed year of service of an employee. Further, the cumulative package accounts to an ex gratia amount equivalent to 87 days of last drawn gross wages as on May 2022, a fixed ₹50,000 for every completed year of service benefits equivalent to a lumpsum amount of ₹2.40 lakh and current medical insurance coverage until March 2024.

Last year, Ford called quits in India and decided to quit local manufacturing and only sell high-end models in India through the import route.