Understanding severance pay isn't just for those who are losing their jobs
Ford India, the subsidiary of United States-based automaker Ford on Thursday said it has arrived at a settlement with the employees union on the severance package following the company's decision to shut its Tamil Nadu plant as part of a restructuring exercise. Accordingly, the company would revise the final severance settlement to an average equivalent of 140 days of gross wages per completed year of service from the ongoing offer of 130 days. "An additional one-time lump sum of Rs 1.50 lakh will also be included in the final settlement." Ford India said in a statement.
The chances of former workers getting jobs depends on the model under which Ford would restart its Chennai plant operations -- under Ford India or as a joint venture or under any other model.
Ford India has offered a "final revised severance package" for its employees at the Chennai unit, which is on average equivalent to 130 days of gross wages per completed year of service. The company said this was rolled out in the absence of any suitable alternative buyer. As part of the earlier package, employees were offered 115 days of gross wages for each completed year of service, which was later revised to 124 days.
Employees at Ford India's Chennai unit have called off the strike that started on May 30. Following this, the company has revised its severance package from earlier 115 days to 121 days for employees supporting production. The company indicated it would continue 'constructive discussions' with the unions in order to sweeten the deal further, if required.
With Tata Motors subsidiary taking over Ford's passenger vehicle (PV) manufacturing unit at Sanand in Gujarat, uncertainty over the future of Ford's Maraimalai Nagar unit in Tamil Nadu continues, with workers protesting on Thursday demanding a better severance package. There are over 2,000 employees working at the unit. On Thursday, there was a meeting between agitating employees and the state labour department. The workers started protests at the Chennai unit after Tata Passenger Electric Mobility signed a tripartite memorandum of understanding with Ford India and the Government of Gujarat for acquisition of Ford's PV manufacturing plant at Sanand.
An unhappy, restive mood prevails at the Ford factory Maraimala Nagar, 50 km from Chennai, and the surrounding area. The security is tight - not just Ford security personnel but also Tamil Nadu state police who are posted at the main gate. From September 9, when Ford India announced it was phasing out its units in India and leaving, workers at its manufacturing unit at Maraimala Nagar have held onto one hope: that the state government will step in to save their jobs.
Two years after winding up its India production, global automobile giant Ford Motor Company is in talks with the Tamil Nadu government to restart operations at Maraimalai Nagar near Chennai, where it will focus on exports. Chief Minister Stalin visited Ford headquarters in Michigan on Tuesday and held discussions with its top management, urging it to restart production. "Had a very engaging discussion with the team from Ford Motors.
Giving a fresh twist to the Ford India employees' strike at the firm's Maraimalai Nagar factory, the company has set the deadline for Monday evening for workers to accept a 'non-negotiable' severance package it is offering. It also indicated the possibility of legal action against workers from June 14 (Tuesday) and warned of early closure of the unit, before completing remaining export volume production. For the past 14 days, some 2,000 employees at the unit had struck work, seeking a better package from the company.
Tata Motors on Monday said its subsidiary and Ford India have inked a pact with the Gujarat government to acquire FIPL's Sanand vehicle manufacturing plant. Tata Passenger Electric Mobility Ltd (TPEML) -- a subsidiary of Tata Motors -- and Ford India Pvt Ltd (FIPL) have today signed a memorandum of understanding (MOU) with the Gujarat government for the potential acquisition of FIPL's Sanand vehicle manufacturing facility, including land, buildings, vehicle manufacturing plant, machinery and equipment, Tata Motors said in a regulatory filing. The MoU also includes the transfer of all eligible employees of FIPL Sanand's vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals, it added.
With the launch of 'Flair', the new variant of Ford Ikon, auto major Ford India entered the sub-Rs 500,000 mid-sized luxury car market.
'We participate in the design/development of components and systems for electric vehicles, internal combustion engines, and hybrid vehicles.'
Ford India announced on Friday the launch of a free nationwide telephonic customer care service.
The company had stopped taking bookings for the vehicle, which was launched in June, in the wake of heavy demand.
Ford India has created waves in the Indian hatchback market with its latest offering the Ford Figo.
According to the Society of Indian Automobile Manufacturers' (Siam's) data, Ford India between April and June produced 6,752 cars, of which 219 units were exported, through containers in different shipments.
Ford India Ltd on Tuesday drove into the growing sports utility vehicle market with the launch of its Endeavour model.
These were never intended for paid publication and should never have been created, let alone uploaded to the Internet, WPP said.
Car maker Ford India said it is looking at introducing a small car model in the country as part of its strategy to roll out eight new products by 2015.
The company will also check the reorienting wiring harness related to the correct deployment of side airbags in the recalled vehicles.
The company also did not share the amount of booking backlog.
Whether it's Carrefour, Ford, or other foreign majors, they are ready to adjust their strategies and design their plans in a way that would address the Indian consumption story.
Ford India has entered the sports utility vehicle segment of the domestic car market by rolling out its globally popular SUV Endeavour at its manufacturing facility near Chennai on Wednesday.
Ford India Ltd on Wednesday launched Ford Ikon NXT series, the latest variants of its successful mid-size passenger car, Ford Ikon.
Carmaker Ford India on Wednesday said it will launch its small car in the country during 2010. "We are working on the small car programme and will be launching it in 2010," Ford India vice-president (Marketing Sales and Service) Scott McCormack said.
Ford India is graduating from exporter of vehicle assembly kits to exporter of fully-built cars.
The reductions will be applicable across Ford Figo, Ford Classic, Ford EcoSport, Ford Fiesta and the Ford Endeavour.
Asked if it is looking at the Maruti 800 and the Chevrolet Spark segment, Nigel E Wark, executive director, marketing, sales and service, Ford India, said: "Yes, we will be launching the small car in this segment broadly, but there are sub-segments and this is where we will differentiate ourselves. We will be competing in the largest volume segment. India and China are the two markets where small cars are in huge demand and we will be focusing on these countries."
The price of the company's premium hatchback Fusion has been reduced by Rs 18,500, Ford India said in a statement. Likewise the mid-sized sedan Fiesta's price was cut between Rs 21,000 and Rs 25,000, while that of sports-utility vehicle Endeavour has been reduced by Rs 47,000-Rs 54,000.
Auto manufacturers have been recalling vehicles on safety issues.
The company also sells its mid-sized sedan 'Ford Fiesta' as 'Ford Ikon' in South Africa.
The promoter entities of JSW Group are in talks with several electric-car manufacturers in China to launch an electric car for the Indian market at Rs 15-20 lakh, a source close to the development said.
With its bullish plans to take its Figo car model to global markets, Ford India is looking at North America, the UAE and South America, among others, for export. The company expects to export at least 10,000 units of Ford vehicles in these countries by the end of this financial year.
Tata Passenger Electric Mobility (TPEM), a subsidiary of Tata Motors, on Friday announced that it has commenced production at its second factory in Sanand, Gujarat, which it had acquired from Ford India last year. This new facility will unlock an additional manufacturing capacity of 300,000 units per annum, which is scalable to 420,000 units. The new facility is spread over 460 acres and is adjacent to Tata Motors' existing passenger vehicle facility in Sanand.
Automobile dealers' body FADA has urged the government to formulate a task force to monitor the compensation structure being worked out by Ford India for its dealer partners across the country. In a letter to Heavy Industries Minister Mahendra Nath Pandey, FADA president Vinkesh Gulati also requested the government to instruct Ford India to keep the industry body in the loop regarding the compensation structure for the dealerships. "We humbly request your Ministry's intervention... Create a task force which takes day-to-day updates from Ford India to monitor the compensation plan for automobile dealers and dealership employees," Gulati said in the letter.
American automaker Ford on Thursday said that it had withdrawn plans to manufacture electric vehicles (EVs) in India and it won't invest in the country under the performance-linked incentive (PLI) scheme. "After careful review, we have decided to no longer pursue EV manufacturing for exports from any of the Indian plants. "We remain grateful to the government for approving our proposal under the PLI and for being supportive while we continued our exploration. "Ford India's previously announced business restructuring continues as planned, including exploring other alternatives for our manufacturing facilities.
Tata Motors has inked a pact to acquire Ford India's Sanand-based manufacturing plant for Rs 725.7 crore, as it aims to bolster its passenger vehicle production capacity. As part of the deal, Tata Motors will get the entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the Mumbai-based auto major said in a statement. The deal also includes the transfer of all eligible employees, it added.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances