Ford India on Thursday stated that it has revised the ultimate severance package deal for workers who will probably be affected by the corporate’s resolution to close its manufacturing plant in Tamil Nadu. Ford India is a subsidiary of the United States-based automaker Ford. The corporate in September final 12 months introduced that it could shut down its operations in India and would promote solely imported autos.
Right this moment, the carmaker stated that it has arrived at a settlement with the staff union on the severance package deal. Now, it could revise the ultimate package deal to a mean equal of 140 days of gross wages per accomplished 12 months of service from the continuing provide of 130 days. The corporate in a press release stated that an extra one-time lump sum of Rs 1.50 lakh may even be included within the last settlement.
In line with the corporate, a cumulative severance package deal for every worker would vary from Rs 34.50 lakh to Rs 86.50 lakh and the revised settlement would translate to a mean of about 5.1 years or 62 months’ wage for every worker. The formal settlement settlement is anticipated to be executed by the top of September and workers can be notified on the subsequent steps in direction of finishing the exit formalities.
Ford India stated it could proceed paying wages to workers till September 30 to help the exit formalities and “stays grateful to the union, Tamil Nadu authorities and labour officers for his or her help”.
In July this 12 months, the corporate rolled out its final manufacturing automotive from the meeting strains on the Maraimalai Nagar facility, a satellite tv for pc city of Chennai.
(With inputs from PTI)