Ford management to hold talks with employees’ union of Chennai plant on Monday

Employees of the Ford India plant in Maraimalainagar near here have demanded the intervention of the Tamil Nadu government in ensuring that jobs are not lost when the US-based giant closes its manufacturing unit. Representatives of the Chennai Ford Employees’ Union will launch formal talks with the management of Ford India Private Limited on Monday to discuss the settlement offer and other issues.

Ford had on September 9 announced the shutting down of its manufacturing facilities in Maraimalainagar and Sanand in Gujarat, blaming accumulation of operational losses for its decision. Employees said the factory was closed for a week and they were informed of the decision to cease operations through text messages, hours before a media statement was released.

“We did not have an idea of what is in store for us till Thursday morning. The union office bearers were told about the decision half hour before we received text messages. That the company is shutting down is yet to sink in,” Selvakumar, an employee of Ford India, told DH.

Over 2,600 employees of the plant will lose their jobs once the operations cease to exist. P Senthilkumar, general secretary of Chennai Ford Employees’ Union, told DH that they will meet the management on Monday to set in motion the process of settlement.

“We are meeting the management on Monday. This is the initial meeting that we will have with Ford India management. We will discuss the broad contours of the settlement that the management has announced. It will take at least a few months for us to reach an agreement,” Senthilkumar said.

The company has said that its executives are “working closely” with employees, unions, suppliers, dealers, government, and other stakeholders in Chennai and Sanand to “develop a fair and balanced plan to mitigate the effects of the decision” to shut down the plants.

Senthilkumar also said the union has sought the intervention of the state government in ensuring that jobs are not lost. “We have asked the state government to intervene and ensure that jobs are not lost if Ford India sells the plant to another car manufacturer. The government should step in and help us,” he added.

The entry of Ford, one of the iconic automobile brands of the US, into Chennai, laid the foundation stone for the city emerging as India’s very own Detroit. After Ford came to Chennai in 1995, top carmakers like Hyundai, Renault-Nissan, BMW, and others flocked to the city making it an automobile hub of the country.

The company had attributed the decision to close down the plants for vehicle manufacturing to the accumulated operating losses of more than $2 billion over the past 10 years, a $0.8 billion non-operating write-downs of assets in 2019, persistent industry overcapacity and lack of expected growth in India’s car market.

Check out the latest DH videos here: