The chances of former workers getting jobs depends on the model under which Ford would restart its Chennai plant operations -- under Ford India or as a joint venture or under any other model.
Will they get a second innings at the Ford India's Chennai plant is the thought that is going in the minds of a large number of former workers after the recent announcement by Ford Motor Company.
The US auto major recently announced its decision to restart production at its Chennai plant.
The announcement has come as music to the ears of a large number of former workers at the plant as a majority of them are not properly employed after their severance from Ford India.
"Majority of the workers were in the age band of 35 to 40. While some have found good jobs, a large number of workers have not found a proper job similar to the ones they had at Ford India," says A Satish Kumar, a former official of the workers' union.
"Our phones are ringing after Ford announced its decision to restart production at its Chennai plant. Workers are anxious to know the possibility of them getting employed at Ford's Chennai plant," says K Selvaraj, former president of the Chennai Ford Employees Union (CFEU).
Their hopes hinge on the agreement that was signed in 2022 between CFEU and the Ford India management with a provision that the workers will be given preference in employment if production at the plant is restarted within three years, said an office bearer of the union not wanting to be named for this report.
The agreement was signed at time of severance prior to the plant halting car production.
The re-employment clause has a rider. The former workers will be rehired based on the company's assessment of the worker's efficiency, knowledge and other attributes.
The provision may be sought to be implemented through a court order as the union had signed off its relationship with the company, a union official said.
According to him, the union has not been wound up.
While the restarting of production announcement is welcome, everything is unclear.
Further, the chances of former workers getting jobs depends on the model under which Ford would restart its Chennai plant operations -- under Ford India or as a joint venture or under any other model.
Only a few experienced hands in the quality control, maintenance may be hired, it is said.
If Ford decides to roll out just the Endeavour from the Chennai plant then only 200 workers would be needed. But if EcoSport and other models are to be manufactured then the headcount would increase, a union official added.
The other important question is whether Ford would require 300 acres to run its operations for exports alone which is expected to be on a reduced scale.
On September 13, 2024, Ford announced that it has given its letter of intent to the Tamil Nadu government to utilise the Chennai plant for manufacturing for export.
The announcement follows a meeting between Tamil Nadu Chief Minister M K Stalin and Ford Motor officials in the US.
According to Ford, the Chennai plant will be repurposed for restarting production and the type of manufacturing and other details will be disclosed in due course.
At the time of the Chennai plant's closure, it had 2,592 permanent employees.
Except for some workers, all others accepted the severance package announced by Ford India. About 60 workers refused the severance package and many have gone to court.
Balasundaram Radhakrishnan, transformation officer, Ford India, had earlier said the final settlement package (an average equivalent of 140 days of gross wages per completed year of service and additional Rs 1.5 lakh lumpsum per employee) signed translates to an average of about 5.2 years/62-months of salary for each employee (from a minimum of 4.1 years -- 49 months -- to a maximum of 9 years -- 108 months).
The cumulative severance for each employee ranged from a minimum amount of Rs 34.5 lakh and a maximum of Rs 86.5 lakh, Ford India had said earlier.
Ford said its global business operations in Tamil Nadu has a headcount of about 12,000 and in three years' time, the number will increase by 2,500 to 3,000.
According to the US auto major, combined with the engine manufacturing operations in Sanand in Gujarat, India represents Ford's second largest salaried workforce worldwide.
In September 2021, Ford India announced its decision to wind down vehicle assembly in Gujarat's Sanand vehicle and engine manufacturing in Chennai.
Ford India had set up four plants in the country -- vehicle and engine plants in Chennai and Sanand.
The company sold its Gujarat facility for Rs 725.70 crore to Tata Passenger Electric Mobility Ltd.
The plant in Sanand includes the entire land and buildings, the vehicle manufacturing plant, along with its machinery and equipment, and transfer of all eligible employees of Ford India's vehicle manufacturing operations.
Ford India is operating its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric.
Be that as it may, Ford Motor seems to have a special link with the month of September with regard to the Chennai plant.
In September 2021, the company announced its decision to close down vehicle assembly in Gujarat's Sanand vehicle and engine manufacturing in Chennai.
The next September saw Ford India ink the agreement with the workers union at Chennai plant.
And two years later, this September, Ford Motor announces its decision to restart operations at its Chennai plant for exports.
Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com
Feature Presentation: Rajesh Alva/Rediff.com
