Ford India has sent a communication to the office-bearers of Chennai Ford Employees Union (CFEU), stating that the last date of manufacturing operations for FCSD parts will be August 21, 2022.
The company said that to support the completion of severance discussions with the union before August 10, 2022, and to process exit formalities, the company had decided to pay wages to all employees until August 31, 2022.
From the time the company announced the closure of its Chennai plant, it has had 43 meetings with the union members and 17 meetings before the labour authorities. In the last 60 days, the company has increased its offer from 87 to 124 days of average equivalent wages per completed years of service (subject to a minimum amount of ₹30 lakh and a maximum cap of ₹80 lakh). This offer is significantly higher than the compensation prescribed under the Industrial Disputes Act, 1947, and any market benchmarks.
Additionally, the company has already offered to continue the current medical insurance coverage till March 2024 as per the current policy terms and conditions.
Members’ demands
On July 22, 2022, the union members made a set of demands, asking for 185 days of average equivalent wages per completed years of service calculated on the basis of 26 days per month. They demanded a minimum package per employee at ₹50 lakh and the maximum cap of ₹80 lakh to be removed. Ford India has now called the union to discuss the terms of settlement, to be finalised before August 10, with the company's best offer as the basis. If the union does not come forward to finalise the terms, the company will be forced to launch its last offer as VSS package for the employees. Further, the company will no longer engage in any further bilateral discussions and will take appropriate legal procedures as next step, it said in the letter on Wednesday.
Last September, Ford announced that it would cease vehicle manufacturing at its Chennai plant on account of significant accumulated losses and inability to find a sustainable path forward.
