(PTI) Ford India on Thursday said that it has revised the final severance package for employees who will be affected by the company’s decision to shut its manufacturing plant in Tamil Nadu.
Co. said that it has arrived at a settlement with the employees’ union on the severance package. Now, it would revise the final package to an average equivalent of 140 days of gross wages per completed year of service from the ongoing offer of 130 days. The company in a statement said that an additional one-time lump sum of Rs 1.50 lakh will also be included in the final settlement.
According to the company, a cumulative severance package for each employee would range from Rs 34.50 lakh to Rs 86.50 lakh and the revised settlement would translate to an average of about 5.1 years or 62 months’ salary for each employee. The formal settlement agreement is expected to be executed by the end of September and employees would be notified on the next steps towards completing the exit formalities.
Ford India said it would continue paying wages to employees until September 30 to support the exit formalities and “remains grateful to the union, Tamil Nadu government and labour officials for their support”.
Ford India is a subsidiary of the United States-based automaker Ford. The company in September last year announced that it would shut down its operations in India and would sell only imported vehicles.