The cumulative severance for each employee will range from a minimum amount of Rs 34.5 lakh and a maximum cap of Rs 86.5 lakh.
23 Sep 2022 | 5475 Views | By Autocar Professional Bureau
Eighteen days after it rolled out its final severance offer to workers at its Chennai plant, Ford India has issued a statement that it has arrived at a final settlement with the Chennai Plant workers union.
As is known, Ford Motor Company announced its plan to stop manufacturing ...
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Eighteen days after it rolled out its final severance offer to workers at its Chennai plant, Ford India has issued a statement that it has arrived at a final settlement with the Chennai Plant workers union.
As is known, Ford Motor Company announced its plan to stop manufacturing operations in India on September 9 last year. Ford India wound up all manufacturing operations in the country with the last car – an EcoSport – being produced at its Maraimalainagar plant in Chennai on July 21, 2022.
As per the final severance package agreement, the company “will 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 150,000 will also be included in the final settlement.”
The cumulative severance for each employee will range from a minimum amount of Rs 34.5 lakh and a maximum cap of Rs 86.5 lakh. The revised settlement will translate to an average of about 5.1 years or 62 months of salary for each employee, the company said.
The formal settlement agreement is planned to be executed before the end of September 2022.