After months of discussions, Ford management and the union members have finally reached a settlement on the severance package being offered to its employees at the Chennai plant. As per the final agreement, the company will revise 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 payment of ₹1.5 lakh will be included in the final settlement. The cumulative severance package for each employee will range from a minimum of ₹34.5 lakh to a maximum of ₹86.5 lakh (translating to an average of ₹44.8 lakh per employee). According to details provided by Ford, the revised settlement will translate to an average of about 62 months salary for each employee (from a minimum of 3.9 years to a maximum of 8.7 years).
The formal settlement agreement will be executed before the end of this month. Ford will notify employees of the next steps and complete the exit formalities by September 30. The company will pay wages to all employees until September 30.
