Ford India to announce settlement package for factory employees, says TN govt

US-based auto manufacturer Ford is in the process of coming out with a settlement package for the employees in its Tamil Nadu factory,a state minister said during an interaction with media. The workers have been fearing being left in a limbo after the auto company decided to stop its manufacturing activities in India under its restructuring exercise.

File photo: Ford cars being assembled at a plant of Ford India in Chengalpattu, on the outskirts of Chennai. (REUTERS)
File photo: Ford cars being assembled at a plant of Ford India in Chengalpattu, on the outskirts of Chennai.

After holding a review meeting with over 50 auto parts suppliers who hail from different regions in the state and work with Ford, Rural Industries Minister T M Anbarasan informed that Ford is also working on announcing a settlement package for its factory employees in the state. The minister added hat the state government will take all possible measures to safeguard the lives of industry workers and will also check the feasibility of another automaker taking over the Ford facility.

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Anbarasan also clarified that the workers are currently receiving their salaries and have not been asked to leave immediately. "Even now the factory is producing cars, employees are being given salaries. We have enough time for (relief package). They have announced closure of the plant only in 2022," he said. Ford's factory near Chennai employs about 2,638 workers directly and 1,421 workers indirectly, the minister informed.

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Talking about the auto parts suppliers working with Ford, Anbarasan said that many auto parts suppliers were not directly involved with Ford and they supply parts to other auto majors as well. However, his ministry has made a note of the ones who will be hugely impacted after Ford ships out of the country, and will take it up with the state's chief minister MK Stalin.

Ford, earlier this month announced its plans of packing up its manufacturing business from the country owing to losses to the tune of $2 billion over the past 10 years. The company has production facilities near Chennai, Tamil Nadu and in Sanand, Gujarat.

(with inputs from PTI)

First Published Date: 23 Sep 2021, 09:50 AM IST
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