Ford has upped the separation package for employees at the Maraimalai Nagar plant near Chennai and is “happy to arrive at a settlement with the Union”.
According to a statement from the company, it has now revised the final severance settlement to an average equivalent of 140 days of gross wages per completed year of service from the ongoing offer of 130 days.
An additional one-time lump sum of INR 1.5 lakh will also be included in the final settlement. The cumulative severance for each employee will range from a minimum amount of INR 34.5 lakh and a maximum cap of INR 86.5 lakh (translating into an average of INR 44.8 lakh per employee).
The revised settlement, adds the statement, will translate into an average of about 62-month of salary for each employee (from a minimum of 47 months to a maximum of 105 months).
The formal settlement agreement is planned to be executed before the end of this month, and the company will notify employees of the next steps as it looks forward to completing the exit formalities.
Ford will also continue paying wages to all employees until September 30 to support the exit formalities and “remains grateful to the Union as well as the Tamil Nadu Government and labour officials for their support.”
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