Ford India management and employee union sign severance package
U.S. automaker Ford said company management and its union at the Chennai auto plant – Chennai Ford Employees Union (CFEU), representing 2,592 permanent employees, signed a settlement agreement on Friday, concluding negotiations on severance pay.
The company has been working to finalize the settlement package for workers after its announcement in September 2021 to close its nearly three-decade-old car production operations in India. Last week, Ford India said it had reached an agreement with the CFEU on final severance pay.
“The severance settlement agreement signed today between Ford and the Chennai union is a significant milestone and a win-win situation for all involved,” said Balasundaram Radhakrishnan, Chief Transformation Officer at Ford India.
The final settlement package (an average equivalent of 140 days gross salary per completed year of service and an additional lump sum of ₹1.5 lakh per employee) signed on Friday translates to an average of around 5.2/62 months of salary for each employee (from a minimum of 4.1 years or 49 months to a maximum of 9.0 years or 108 months).
The last date of hire for all employees will be September 30, 2022 and the company is advising employees of next steps and will seek to complete exit formalities,
“Keeping in mind the upcoming festival month, the company, as a measure of goodwill, has also decided to pay an additional amount equivalent to 1 month’s gross salary as a hiring benefit for the employees. who complete the exit process by October 14, 2022 We thank our employees in advance for their patience and support in the process and remain grateful to the Tamil Nadu government and labor officials for their guidance,” a- he added.