Tamil Nadu’s Rural Industries Minister T M Anbarasan said US-based auto manufacturer Ford is in the process of coming out with a settlement package for the employees in its Tamil Nadu factory. The workers have been fearing being left in limbo after the auto company decided to stop its manufacturing activities in India under its ‘restructuring’ exercise.
Ford India earlier this month announced shutting down its operations in the country and said it would sell only imported vehicles. The company, which has invested about USD 2.5 billion at its Chennai and Sanand (Gujarat) plants, would stop selling vehicles like the EcoSport, Figo and Aspire manufactured from these factories.
After holding a review meeting with over 50 auto parts suppliers who hail from different regions in the state and work with Ford, Rural Industries Minister T M Anbarasan informed that Ford is also working on announcing a settlement package for its factory employees in the state. The minister added that the state government will take all possible measures to safeguard the lives of industry workers and will also check the feasibility of another automaker taking over the Ford facility.
“Soon after reports emerged about Ford’s decision early this month, Chief Minister M K Stalin discussed about the possibilities available to safeguard the livelihood of the employees, including the feasibility of another automaker taking over the facility…This government is industry-friendly and whatever measures need to be taken, will be taken, in the interest of employees”, he told reporters.
Asked whether there was a possibility of announcing an interim relief package for the employees, he said they were not asked to leave immediately and were receiving their salaries.
“Even now the factory is producing cars, employees are being given salaries. We have enough time for that (to announce a relief package). They have announced closure of the plant only in 2022.”, he said. Ford’s factory near Chennai employs about 2,638 workers directly and 1,421 workers indirectly, the minister informed.
Talking about the auto parts suppliers working with Ford, Anbarasan said that many auto parts suppliers were not directly involved with Ford and they supply parts to other auto majors as well. However, his ministry has made a note of the ones who will be hugely impacted after Ford ships out of the country and will take it up with the state’s chief minister MK Stalin.
A parts supplier who had set up shop in 1997 along with Ford, which had commenced operations at Maraimalai Nagar, about 45 km from Chennai, said 80 percent of the parts manufactured were supplied to Ford and his company was earning Rs 80 crore annually.
“We will be hit hard in the wake of Ford closing down the unit. We even had the land leased from Ford to produce the auto parts,” he said.
Another wiper and blades manufacturer said he had set up a facility in neighbouring Oragadam at an investment of Rs seven crore and suggested that the government consider another auto major taking over the Ford facility.
A senior official of a company engaged in the production of fuel and braking systems for Ford India said they employ about 300 people and were in the process of seeking claims of Rs 25 crore from Ford for the loss they expect to incur in the wake of Ford shutting down the unit.
When contacted about the comments made by the government, Ford India said, “we will be working with the unions and other stakeholders on measures to help balance the impact and to care for those directly affected by the restructuring.”