Ford India has reached a deal with the employees union for a severance package.
Story so far: The Ford India factory has been shut since August 31 as the company begins to wind down its operations here. In July, the company rolled out its last production car from the Maraimalai Nagar plant. It has been locked in a dispute with the union on a severance package. The earlier one was rejected.
- The final package will include a one-time lump sum of ₹1.5 lakhs. With this, each employee will get a cumulative package ranging from ₹34.5 to ₹86.5 lakhs.
- It represents about 5.1 years or 62 months’ salary for each employee. The revised settlement will be executed before the month-end as the company continues to pay wages till September 30.
What it said: In a statement, Ford India said it remains grateful to the union, the state government, and labour officials. As the company winds down, it announced last year it will sell only imported vehicles in the country.