Ford India in the process of coming out with settlement package for employees: TN govt

#Ford India, #MK Stalin, #Tamil Nadu

(Image: Ford)

Ford India was in the process of announcing a settlement package with the employees in the wake of the US-based auto major deciding to shut its two manufacturing facilities in the country under its ‘restructuring’ exercise, a state minister said on Wednesday. Ford India earlier this month made the announcement of shutting down its operations in the country and said it would sell only imported vehicles.

The company, which has invested about $2.5 billion at its Chennai and Sanand (Gujarat) plants, would stop selling vehicles like the EcoSport, Figo and Aspire manufactured from these factories. On Wednesday, after holding a review meeting with the more than 50 auto parts suppliers to Ford hailing from Chengalpet, Tiruvallur, and Chennai, Rural Industries Minister T M Anbarasan said the government has received information that Ford was in the process of announcing a ‘settlement package’ to the employees.

ALSO READ: Ford Motor to close manufacturing plants in India after $2 billion loss

“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. A parts supplier who had set up shop in 1997 along with Ford, which had commenced operations at Maraimalai Nagar, about 45 kms from Chennai, said 80 per cent 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. Later, responding to a query, Anbarasan said “Ford has announced its decision to shut its factory by 2022 and we have received information that it was in the process of announcing a settlement package to the employees. There are about 2,638 workers directly employed and 1,421, indirectly.”

The Minister said during the review meeting today, the Micro Small and Medium Enterprises commissioner and the principal secretary discussed the matter and one of the highlights to emerge from the meeting was that ‘not many auto parts suppliers were directly involved with Ford’. “They were not only supplying parts to Ford but also to other auto majors. Those companies who will be hugely impacted due to Ford’s decision have made a request. We have taken note of it. We will take it up with the Chief Minister (M K Stalin) on further course of action”, he said.

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.”

Internet Explorer Channel Network
News Related

OTHER NEWS

Troubled developer Evergrande to resume trading, warns of financial obligations

China Evergrande Chinese developer Evergrande will resume trading in Hong Kong on Thursday, it said in a filing, but warned there was “no guarantee” it would be able to meet ... Read more »

Bitcoin hits new record above $65,000 after Wall Street foray

Bitcoin hit a new record on Friday, surging past $65,000 after it took another step towards mainstream status as it forayed onto Wall Street. A bitcoin futures exchange-traded fund, a ... Read more »

Stocks open slightly higher on Wall Street, led by health

Source: Reuters Stocks are edging higher in early trading on Wall Street Wednesday and health care companies were leading the way for the second day in a row. The S&P ... Read more »

Future Retail must take part in Amazon dispute arbitration, says Singapore panel

Future Retail must take part in arbitration over a commercial dispute with Amazon.com Inc, a Singapore arbitration panel ruled on Wednesday, rejecting the Indian retailer’s bid to avoid the process. ... Read more »

Stricken developer Evergrande to resume trading, warns of financial obligations

China Evergrande Chinese developer Evergrande will resume trading in Hong Kong on Thursday, it said in a filing, but warned there was “no guarantee” it would be able to meet ... Read more »

Bitcoin closes in on record high at $64,257, day after US ETF debut

(Image: Reuters) Bitcoin hovered just below its record highs on Wednesday and the first US bitcoin futures-based exchange-traded fund (ETF) looked set to open firmer after surging on its debut ... Read more »

Why designer labels have caught the fancy of retail majors

President & CEO of RBL Darshan Mehta and fashion designer Manish Malhotra. After Aditya Birla Fashion and Retail (ABFRL), the Reliance group seems to be on a designer label shopping ... Read more »

Explained: Employment ambit may get extended, what will be the impact

A Swiggy Delivery boy | Representative image The government is reportedly considering making changes to the definition of ’employment’ to extend coverage to gig workers and platform workers. Anganwadi or ... Read more »

Stripe acquires fintech startup Recko in first Indian acquisition

United States-based payments and API company Stripe on October 20 said that it has acquired Recko, its first acquisition in India. The Bengaluru-based startup is a provider of payments reconciliation ... Read more »

RBI imposes Rs 1 crore penalty on Paytm Payments Bank

The Reserve Bank of India (RBI) on October 20 said it has imposed a monetary penalty of Rs one crore on Paytm Payments Bank Limited (PPBL) for certain violations. This is ... Read more »

United Airlines CEO says to expect higher fares as jet fuel prices rise

Jet fuel prices are rising to levels not seen since before the Covid pandemic and it's set to drive up airfares, United Airlines CEO Scott Kirby said Wednesday. “Higher jet-fuel ... Read more »

Mirae Asset MF assets under management crosses Rs 1 lakh crore

Mirae Asset Investment Managers (India) Pvt Ltd on Wednesday said its assets under management have crossed the Rs 1 lakh crore mark. Mirae Asset, which began its journey in India ... Read more »

Buy Hindustan Unilever; target of Rs 3200: Motilal Oswal

Motilal Oswal’s research report on Hindustan Unilever Hindustan Unilever (HUVR)’s 2QFY22 results were in line with our estimates. While domestic volume growth was weaker than expected at 4% for the ... Read more »

Nord Stream 2 to fill gap in energy market, says Russian ambassador in Germany

Sergey Nechayev expressed hope that the new German government would support Nord Stream 2 as the project meets the interests of both the country’s economy and its population as it ensures energy security Read more »

Chili's parent stock tumbles 11% after labor challenges and higher food costs hit earnings

Hiring sign at Chili's bar and grill with plenty of incentives.UCG | Universal Images Group | Getty Images Shares of Chili's parent Brinker International fell about 11% in premarket trading ... Read more »

Record out-of-stocks, shipping delays expected this holiday season. Here's who shoppers blame

Two workers load boxes into an Amazon truck The looming holiday season will likely exacerbate a global supply chain calamity that's already underway, as shoppers rush into stores and onto ... Read more »

Mangalam Organics family buys luxury duplex unit for Rs 53 crore in Mumbai

Several transactions worth Rs 25 crore to Rs 100 crore were registered in the Mumbai market this year. For the uber-rich, closing high-end deals is only a number, especially when ... Read more »

Going beyond Netflix subscription lapses: The widespread impact of failed recurring payments

Image: Shutterstock (Representative image) Since October 1, Twitter timelines have been abuzz with angry and confused customers dealing with failed payments for their subscriptions. The Reserve Bank of India’s new ... Read more »

Buy Larsen and Toubro Infotech; target of Rs 7864: YES Securities

YES Securities’ research report on Larsen and Toubro Infotech Overall, the performance in the quarter was well ahead of expectation. Demand environment continues to remain robust for the company. We ... Read more »

Buy ICICI Prudential Life; target of Rs 836: YES Securities

YES Securities’ research report on ICICI Prudential Life The sluggishness in retail protection continued on account of changes in guidelines and continued reluctance of potential customers to carry out medical ... Read more »

Gold prices jump above Rs 47,500/10 gm on firm global trend, festive demand; Silver costlier by Rs 1,386 a kg

Gold prices rose by Rs 164 to Rs 47,548 per 10 gram in the Mumbai bullion market tracking firm global trend and festive demand. The precious metal upside was capped ... Read more »

German central bank president leaves unexpectedly

The president of the German central bank, Jens Weidmann, unexpectedly announced his early departure on Wednesday. Weidmann has asked German Federal President Frank-Walter Steinmeier to resign him by the end ... Read more »

China's tech crackdown will see ‘more substantial progress' by year's end, Beijing vows

Chinese authorities say progress is being made in their efforts to clean up the financial irregularities created by privately run tech giants and other industrial capitalists, while doubling down on ... Read more »

Neutral Nestlé India; target of Rs 19,100: Motilal Oswal

Motilal Oswal’s research report on Nestlé India Nestlé India (NEST) reported sales in line with our estimates. Growth of 9.6% in 3QCY21 on a base of 10.1% in 3QCY20 indicates ... Read more »

We expect gold imports to rise further in coming months: GJEPC

The country’s gold imports are expected to grow further in the coming months on account of peak demand due to festive and wedding seasons, Gems and Jewellery Export Promotion Council ... Read more »

Buy ACC; target of Rs 2692: Motilal Oswal

500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive ... Read more »

RBI staff unions' umbrella body writes to governor seeking wage settlement, may go for protests

The Reserve Bank of India on Friday kept key policy rates unchanged and also retained its accommodative stance. This means that existing and new borrowers will continue to enjoy benign ... Read more »

L&T Technology Services eyes $1.5 billion revenue by FY25, to hire 2,000 freshers in next six months

Amit Chadha, CEO & MD, LTTS Engineering R&D major L&T Technology Services (LTTS), which is eyeing $1.5 billion revenue by 2025, is going big on fresher hiring as it plans ... Read more »

Ajax swings a lot less on the stock market after a resounding victory over Borussia

After an energetic start, the price of Ajax was in the plus around half past two, with a position of €15.15. Investors seemed less impressed by the spectacular victory of ... Read more »

White House announces plan to distribute Covid vaccine to kids age 5 to 11 as soon as it's authorized

Thomas Lo (15) receives a dose of the Pfizer-BioNTech vaccine for the coronavirus disease (COVID-19) at Northwell Health's Cohen Children's Medical Center in New Hyde Park, New York, May 13, ... Read more »

Accumulate UltraTech Cement; target of Rs 1997: KR Choksey

KR Choksey’s research report on UltraTech Cement In Q2FY22, NII (Net Interest Income) grew to INR 17,684 Cr from INR 15,776 Cr driven by advances growth of 15.5% YoY. The ... Read more »

Buy Infosys; target of Rs 2074: Geojit

Geojit’s research report on Infosys Infosys Limited provides IT consulting and software services, including e-business, program management and supply chain solutions. The Group’s services include application development, product co-development, and ... Read more »

Renault sees bigger production hit from chip shortage: Report

(Source: Reuters) French carmaker Renault expects to produce at least 300,000 fewer vehicles this year due to a global shortage in semiconductor chips, three sources close to firm told Reuters ... Read more »

Interview | It is not a recovery, but a rebuild for the IT industry: Nasscom President Debjani Ghosh

There are decades where nothing happens, and there are weeks where decades happen. A quote that that has been innumerable times over the last year can easily apply to India’s $194 ... Read more »

Hainan's foreign trade grew 60.4% in the first three quarters of 2021

The province's export grew 27.5% and up to 24.1 billion yuan over the period Read more »

Hold ICICI Pru Life; target of Rs 760: Emkay Global Financial

Emkay Global Financial’s report on ICICI Pru Life ICICI Prudential’s H1FY22 results were broadly on the expected lines. Since IPRU’s monthly new business numbers were already known, the key monitorablesin ... Read more »

How does the first bitcoin ETF change your life?

(Image: Reuters) NYSE made history by listing first the Bitcoin ETF. The Proshares Bitcoin Strategy ETF tracks bitcoin’s futures traded on Chicago Mercantile Exchange What is this bitcoin ETF? Exchange-traded ... Read more »

Abu Dhabi Investment Authority to invest US$400 million in Indonesia's GoTo Group

GoTo Group, the digital leviathan created by the merger of Gojek and Tokopedia in May, said on Wednesday that the Abu Dhabi Investment Authority (ADIA) will invest US$400 million and ... Read more »

Vistara narrows loss in FY21, revenue drops 53% in pandemic year

Representative image Vistara, the joint venture airline between Tata Sons and Singapore Airlines, narrowed its loss in the year ended March 31 as other income increased and total expenditure fell. ... Read more »

Rijk sets Pels Rijcken strict requirements after millions of dollars fraud

As a result of the multi-million dollar fraud at state lawyer Pels Rijcken, the national government will impose stricter requirements on this office. For example, Pels Rijcken must appoint three ... Read more »