US automotive main Ford has prolonged the deadline for accepting the severance bundle by the employees on the closure-bound Chennai manufacturing unit to June 18 from June 14. The plant has resumed operations after two weeks’ strike by employees searching for higher compensation bundle. Ford mentioned that those that nonetheless proceed to be on strike will likely be slapped with lack of pay.
In an e-mailed response, a Ford India spokesperson informed FE: “The Chennai plant has resumed operation with effect from June 14, 2022. For employees continuing to be on an illegal strike, a ‘loss of pay’ as per the certified standing orders will come into effect today (June 14, 2022).”He mentioned that pursuant to the discover dated June 9, 2022, the corporate has acquired a optimistic response for the severance pakage. With most of the staff having ongoing queries in regards to the severance provide and requesting extra time for giving consent, the corporate has determined to increase the final date for submission of the shape to five pm on June 18, Saturday.
Ford India had set the deadline for June 14 for employees to just accept a ‘non-negotiable’ severance bundle it had supplied whereas indicating the potential of authorized motion towards employees from June 14 (Tuesday) had warned of early closure of the unit, earlier than finishing remaining export quantity manufacturing.
Around 2,000 staff on the Chennai plant have been on a strike for nearly two weeks searching for a greater bundle from the corporate, after the Sanand unit was taken over by the Tatas.
Subsequently, the Ford administration proposed a compensation bundle underneath which the employees have been supplied 115 days of gross wages for every accomplished yr of service. The firm had claimed that the bundle will likely be considerably greater than the statutory severance bundle or 15 days of wages for every accomplished yr of service.
The bundle provide consists of an ex-gratia quantity equal to 87 days of final drawn gross wages (May 2022) and a hard and fast quantity `50,000, each being for each accomplished yr of service. In addition, advantages equal to a lump sum quantity of `2,40,000 and continuation of present medical insurance coverage till March 2024 have been supplied. As per the discover, the cumulative quantities for elements set out will likely be topic to a minimal quantity of `30 lakh and a most cap of `80 lakh.
“The above package is not negotiable, and the terms of this notice shall not be construed as forming part of any service conditions. If employees do not opt for the severance package, the company will be forced to take legal steps/proceedings,” the discover had mentioned.
Source: www.financialexpress.com”