Ford India lines up ‘non-negotiable’ severance package for workers

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The package offered includes an ex-gratia amount equivalent to 87 days of last drawn gross wages (May 2022) and a fixed amount Rs 50,000, both being for every completed year of service. In addition, benefits equivalent to a lumpsum amount of Rs 2,40,000 and continuation of current medical insurance until March 2024 were offered. As per the notice, the cumulative amounts for components set out will be subject to a minimum amount of Rs 30 lakh and a maximum cap of Rs 80 Lakh.

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“The above package is not negotiable, and the terms of this notice shall not be construed as forming part of any service conditions. If employees do not opt for the severance package, the company will be forced to take legal steps/proceedings,” the notice added.

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Ford Motor Company announced in September last year it was shutting its factories in India. The next round of talks between the Union and the management is on June 14, the date on which the company is intending to restart production. As protests are happening within the plant premises, employees were informed that only those who are willing to support production will be allowed entry to the factory area from Tuesday. The company also warned about taking appropriate actions against those who continue with the ‘illegal strike’ within the factory premises, even making loss of pay option applicable.

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“The Company has very limited export production left to complete. In case employees do not resume production from June 14, there is a high likelihood that the Company will be required to call off production of remaining export volumes and bring vehicle production to a close,” the information to the employees added.

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