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Ford India on Thursday mentioned that it has revised the ultimate severance package deal for workers who will likely 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 yr introduced that it will shut down its operations in India and would promote solely imported automobiles.
Right this moment, the carmaker mentioned that it has arrived at a settlement with the staff union on the severance package deal. Now, it will revise the ultimate package deal to a median equal of 140 days of gross wages per accomplished yr of service from the continued supply of 130 days. The corporate in an announcement mentioned that a further one-time lump sum of Rs 1.50 lakh may also be included within the last settlement.
Based on 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 median 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 staff can be notified on the following steps in the direction of finishing the exit formalities.
Ford India mentioned it will proceed paying wages to staff till September 30 to assist the exit formalities and “stays grateful to the union, Tamil Nadu authorities and labour officers for his or her assist”.
In July this yr, the corporate rolled out its final manufacturing automobile from the meeting traces on the Maraimalai Nagar facility, a satellite tv for pc city of Chennai.
(With inputs from PTI)
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