Companies

Ford extends Chennai factory closure plan to July 31

G Balachandar | | Updated on: Jun 22, 2022
Over 2,000 employees of Ford’s Chennai factory went on strike from early this month demanding a better severance package.

Over 2,000 employees of Ford’s Chennai factory went on strike from early this month demanding a better severance package. | Photo Credit: VELANKANNI RAJ

The carmaker said it would wind down its production operations after meeting its export obligations

US carmaker Ford has delayed its shutting down plan for the Chennai factory by a month in order to meet its committed export orders.

As the company announced its exit from car manufacturing in India, it said it would wind down its production operations at the Chennai factory by the end of this month after meeting its export obligations.

But the recent protest by a section of workers has affected the production schedules meant for export orders and, as a result, it has now extended the production till July end. 

“Keeping disruptions in mind, the company has decided to extend production till July 31 and for all employees continuing to support production in July, the company will protect wages,” according to a communication by the company.

“Pursuant to the employee cascade on June 9, 2022, the company received a positive response, with a vast number of employees consenting to support production in parallel to continuing discussions on the severance package on offer (i.e., about 115 days for every completed year of service). Over 50 per cent of permanent employees have been supporting production since June 14, it added.

However, for employees continuing to be on an illegal protests, a ‘loss of pay’ as per the Certified Standing Orders remains in effect from June 14, 2022.

“We look forward to having a constructive dialogue (with employees and union representatives) to explain the details and benefits of the severance package under the supervision of the labour department,” said the company.

Over 2,000 employees of Ford’s Chennai factory went on strike from early this month demanding a better severance package. It was said that the proposed plan by Tata Motors to buy Ford’s Sanand plant is reported to have sparked the protest. The Chennai factory is yet to attract an investor, though there has been speculation about a few companies showing interest in the facility.

Published on June 22, 2022
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