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More than 2,000 employees of Ford’s car factory near Chennai are on a protest demanding a better severance package for them due to a bleak future for the factory and re-employment.
While employees have been demanding better settlement packages, the recent development of Tata Motors buying Ford’s Sanand plant seems to have sparked concern . “Employees are protesting both inside and outside the factory in Chennai now,” a senior union official told BusinessLine.
Last year, the US carmaker announced its decision to shut down almost-three-decade long car manufacturing operations in India. It also indicated it would wind down production at the Chennai factory by the second quarter 2022. Ford was making cars in Chennai and Sanand (Gujarat) .
No hope
Tamil Nadu government’s efforts to facilitate the take-over of the Ford factory by other automobile companies or new investors have not yielded any result so far.
As the deadline for the Chennai factory draws near and no ray of hope for the unit’s takeover by new investors, the employees are seeking better settlement packages.
“While Chennai factory’s fate remains undecided, sale of Ford’s Sanand plant caused more worries for the employees and they feel let down by the US carmaker. Also, even if the company is taken over by a new player, the new investor may or not hire all Ford, in case they want to hire freshers for lesser salary packages. Also, staff aged 40-plus will face more challenges. So, re-employment is not guaranteed for workers of the Chennai Ford factory, in case of a take-over by a new player. Hence, there is a valid reason for the Ford management to provide proper settlement packages. But they have not agreed so far,” pointed out the union official.
Meanwhile, Ford’s recent decision to abandon plans to manufacture electric vehicles, which it indicated last year, also shocked the workers.
Ford India recently said, “After careful review, it has decided to no longer pursue EV manufacturing for exports from any of the Indian plants. We continue to work closely with unions and other stakeholders to deliver an equitable and balanced plan to mitigate the impacts of restructuring
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