Future of Ford India workers' in Tamil Nadu govt's hands: Ex-Union leader

Chennai: After Ford India announced that it will no longer be manufacturing cars in India, a former union leader of Hindustan Motor Finance Corporation Ltd has said that the job security of the Ford India's workers is in the hands of the Tamil Nadu government.

"The future Ford India's workers and their families are in the hands of the Tamil Nadu government. It can ensure the buyer of Ford India's car plant near here employs the former's workers," S. Gandhi, Former Secretary of the worker's union at Hindustan Motor Finance told IANS.

Car maker Hindustan Motors Ltd-part of the C.K.Birla group had its car plant at Tiruvallur which was later transferred to group company Hindustan Motor Finance Corporation.

According to S. Gandhi, the compensation for the loss of job will not last long citing his and the experience of other former workers of Hindustan Motor Finance. Gandhi and 174 workers of Hindustan Motor Finance found to their horror of being dismissed on 2.7.2019.

He said the workers were promised that they would be absorbed by the new car maker but in the end the promise was not honoured.

As per the words of Gandhi, Hindustan Motors had its earthmoving equipment division (that made dumpers, loaders and others) at Tiruvallur which was sold to Caterpillar, US. When the buyer absorbed the workers, Gandhi and his co workers thought the same would happen to them.

However, none of the 175 workers were employed in the plant though there are a couple of hundreds of workers rolling out Citroen brand cars. According to him, the workers were ready to be treated as fresh recruits.

In an election, the majority of the workers opted for lump sum compensation instead of fighting for continued employment.

"The compensation paid to workers was between Rs 21 lakh to Rs 24 lakh. We also got our provident fund and gratuity. But that should not be taken as compensation. Many had loan commitments and the amount went towards settling that," Gandhi said.

With Ford India deciding to close down its factories near Chennai and in Sanand in Gujarat, Prakash said the compensation for the workers can differ if the wages paid were different.

Ford's 'quit India' decision will result in an uncertain future for about 5,300 employees - workers and staff, the officials said.

Ford India's Chennai plant has about 2,700 associates (permanent workers) and about 600 staff. According to Ford India, about 4,000 employees are expected to be affected by its decision.

The Ford India union officials are also studying the settlement packages offered by other companies and to avoid other pitfalls so that they can secure a good compensation package if they are not able to protect their jobs.