Resume work or face legal consequences, Ford tells its Chennai workers

In fresh notice, Ford has set a deadline of June 14 for its workers to resume (pending) production at its Chennai plant, which is set to shut down on June 30. The workers, who have been protesting for a better severance package, stopped working on May 30.

Over 2,500 workers have been protesting both inside and outside the Ford plant in Maraimalai Nagar, near Chennai. The workers, unhappy with the proposed severance fund, accused the management of suppressing their demands.

In a proposal, the company offered its permanent employees (who are willing to resume the operations) a severance package of 115 days of gross wages for each completed year of service which is more than the statutory package. Also, benefits equivalent to Rs 2,40,000 and medical insurance coverage until March 2024 have been offered. The company calculates the years of service from the employee’s date of joining as a trainee.

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A severance package includes funds and benefits offered to an employee upon being laid off from a company.

The auto-giant asked the workers to cooperate with them in the remaining production process. Workers, who are not willing to accept the severance package, must provide a reason by 5 pm on June 13. The company also warned of legal consequences against workers who do not opt for a severance package.

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In case of non-cooperation from workers, the company shall be bound to call off the production of the remaining exports.

On September 9, 2021, the auto-giant announced the closing of two of its plants- the Sanand plant in Gujarat and Maraimalai plant in Tamil Nadu 2021.