It will then shutter its Chennai plant by 2022.
Workers in Ford Motors’ Tamil Nadu factory approached the state government seeking job security.
They are concerned regarding their future prospects after the carmaker stops production in India.
Contents
Ford Quits India
This comes after Ford’s announcement that it will no longer make cars in India.
This is because of its losses amounting to $2 billion after years of unprofitable operations.
It will first shut down operations in its Sanand, Gujarat factory by the fourth quarter of this year.
It will then shutter its Chennai plant by 2022.
Thereafter it will only sell imported vehicles here.
The Affected Parties
These closures will result in layoffs of up to 4,000 employees, comprising more than 2,600 permanent workers and over 1,000 contract staff.
The closure of the plants will also lead to losses of the jobs of ancillary companies that supply auto parts.
Micro, small and medium enterprises dependent on Ford Motor are also looking at an uncertain future.
Union Pens Letter
The matter of the threat to their livelihoods after Ford’s abrupt decision to pull out of India has been taken up by the Chennai Ford Employees Union.
It has written a letter to Tamil Nadu state minister T M Anbarasan.
The letter requests the minister to create new jobs and safeguard the livelihoods of the employees.
Proposed Solutions
The Union also asked Ford management to shift the workers to another production unit so as to ensure continued employment.
Employees have said that instead of a severance package, they would rather work with minimum wages for the next 2 years.
This would also help the company reduce losses and make a turn around.
The Centre of Indian Trade Union (CITU) also joined in the protests and targeted the Indian government on Monday.
It brought into question Prime Minister Narendra Modi’s “Make in India” policy which promised more manufacturing jobs in India.
Ford Shuts Down Indian Operations After 26 Years; What About Existing Customers?
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