Ford’s Chennai plant employees rejected its final severance offer.
Story so far: Ford has more than 2,000 employees on its payroll. As the plant is closing down, the company announced its final severance package to employees. The Union rejected it, saying they weren’t consulted when it was being calculated. Previous meetings yielded no results.
- The average severance pay is ₹41 lakhs per employee. It’s an average of 4.6 years’ salary for each employee. The company said the package is equal to 130 days of gross wages for each year of service.
- The Union wants a 185-day package since the current one favours those with nearly ten years of service. Those with less than ten years will be losing out.
Clock’s ticking: Ford said employees who accept this package would be paid till September 30. Post this deadline, if the company decides to retrench employees, they’ll be eligible for only 15 days’ pay per completed year of service.