Ford India Shutdown: 4,000 employees may lose their jobs, workers seek help from TN government

Later Ford India announced that it would no longer manufacture cars in India, employees of Payab India faced massive unemployment. The closure of the company’s wing in India will result in the loss of 4,000 jobs for factory workers, of whom over 2,600 are permanent workers and over 1,000 are contract workers. The shutdown will also affect subsidiaries that supply small parts and auto parts for Ford. This leaves the micro, small and medium enterprises as well as employees looking at an uncertain future. In one step to save your job, Ford Motor Company According to a Reuters report, factory workers at a South Indian plant near the city of Chennai have written a letter to the state government asking it to help protect jobs.

The company itself is shutting down its Indian branches as it has faced being largely unprofitable. There is a loss of about $2 billion. Ford initially entered the market with the idea that India had untapped potential but the results so far have not been able to fulfill that vision. The company is planning to shut down its operations in Sanand, Gujarat by first closing that factory by the fourth quarter of this year. The Chennai plant, on the other hand, is looking at a possible closure date somewhere in 2022, after which only imported vehicles will be sold.

The Chennai Ford Employees Union, in a letter addressed to Tamil Nadu Minister of State TM Anbarasan on September 11, said that thousands of workers were at risk of losing their jobs as a result of Ford’s decision to shut down the Chennai factory, as reported by Reuters. The union also asked Ambarson to ensure that the livelihood of the workers is protected, where they can earn at least some money.

Parallelly, another union in Chennai, the Center of Indian Trade Unions (CITU), organized a protest for this sudden turn of events against the company’s management as well as the government. The protest took place on Monday. CITU’s secretary told Reuters the government would have to step in and stop it. The unions questioned the ‘Make in India’ movement launched by Prime Minister Narendra Modi, who promised more manufacturing jobs in India.

It should also be noted that the union asked Ford’s management to transfer the workers to another production unit so that they would not become completely unemployed. It was reported that according to a report in the News Minute, the employees expressed their willingness to work at minimum wage instead of opting for the severance package. This will actually help the workers in their transition, while assisting the company in the process of closing down by minimizing losses and making changes to some extent.

It is a worrying trend that such large MNCs are exiting India at such a critical point. Last year, unemployment was the highest in the country as a result of the pandemic. Given that COVID-19 continues to persist despite widespread vaccination campaigns, this level of job loss does not bode well for workers in the manufacturing industry. It should be noted, however, that Ford will continue to sell the cards through imports, and will also provide assistance to dealers to service existing customers, although that doesn’t necessarily mean good news for plant workers, who have There is a possibility of job loss.

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