‘Dropped Off A Bus In Unknown Land’: What Ford India Exit Means For Thousands Of TN Workers

The employees are expecting the Tamil Nadu government will either help with smooth transfer of the company to another firm along with the workers, or arrange for alternate employment.

Newly manufactured cars at Ford unit in Maraimalai Nagar

Chennai: All the machines were functionally systematically to manufacture cars after cars at the Ford manufacturing unit in Guduvanchery last Sunday morning. All the employees had reported to work as usual and their shift routine was going on as every other day — checking the parts for flaws, assembling them right and painting the cars. 

However, a sudden announcement brought their work to a screeching halt. The workers were informed that they could take a break for the next five days. The workers initially thought this  was due to a shortage of semiconductors. 

But little did they know that the halt was not temporary but permanent, and that they had just lost their livelihood. 

On Thursday, the Ford India employees were called back for a meeting with the firm’s President and Managing Director, Anurag Mehrotra, and were informed that Ford is winding up its operations in the engine and assembling plants at their units including in Chennai’s Maraimalai Nagar. 

A communication from Ford to the employees read: “As per the Ford Restructure India Operations, Ford will cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022. Ford will continue to make engine manufacturing for export.”

‘We don't think we have a future anymore’

The announcement came as a shock to many, especially the workers who were expecting to come back to work after the supply of semiconductors. 

Senthil Kumar, general secretary of Ford Workers’ Union, told ABP: "We just expected that the talks with other companies will work out or the production will be reduced. However, the announcement felt like we were dropped off a bus in an unknown land much before our destination.”

He added: “The news shattered everyone and we don't think we have a future anymore." 

Not just Senthil Kumar, the meeting revealed that over 40,000 direct and indirect workers including dealership employees are likely to lose their jobs since Ford has decided to shut its vehicle manufacturing factories and at least 2,700 workers in Chennai from Q2, 2022, as per the data with Ford Workers' Union. 

However, though the decision of Ford management to close the manufacturing unit came all of a sudden, it was taken after years of attempts to sustain the business. 

Ford India announced on Thursday that it will wind down vehicle assembly in Sanand (Gujarat) by the fourth quarter of 2021, and vehicle and engine manufacturing in Chennai by the second quarter of 2022. 

However, it said, the company will expand its Chennai-based Ford Business Solutions team as it plans to bring to market some of Ford's iconic global vehicles and electrified SUVs. 

How did Ford come to the decision to stop production?

Ford started its manufacturing units in Tamil Nadu in 1996, and has till date invested Rs 5,161.4 crore. 

Yet, the USA’s one of the top Big Three, Ford, had been sailing in turbulent waters in India for the past few years. And after the company decided to cancel the proposed automotive joint venture with Mahindra in January 2021, things took a turn for the worse. The attempts of Ford to find other partnerships in India failed and the company also suffered operating losses of more than $2 billion in the past 10 years. 

Hence, while there had been rumours that Ford would stop its operations, they turned true on Thursday. 

However, Ford has said that they will receive help from India-based suppliers for parts for its global products and suppliers.

The same, however, cannot be said for the workers’ future. 

Ford’s decision to shut the manufacturing unit has impacted direct employment of 2,700 employees and indirect employment of over 20,000. There are many secondary companies and MSMEs supplying car parts, leathers and tyres that are dependent on Ford in Chennai, and all of them will be affected.

Future of employees

The 3,400 direct employees who are going to lose their jobs include those who have spent up to 25 years at the company. 

A 40-year-old worker does not foresee a future after April 2022. 

The worker, who did not want to be named, is the lone earning member in his six-member family, and has two children. This was his first job, and he had started working at the Ford unit in the technical team under the hourly employee category 18 years ago. He feels he may never get another job after Ford winds up operations. 

He fears he may be forced to do menial jobs or will get a job only as a contract labourer in the automobile industry for a lower pay. 

Talking to ABP Live, he said: “The announcement was such a disappointment. We didn't expect this at all. We hoped for a smooth transition or a joint venture. This announcement came as a total shock.”

He added: “I don't have hope that I will find any new job. People above 45 years old will not even get a job. I just hope that someone will provide me job safety after all seeing my 18 years of service. After April, my whole life is uncertain and I have no clue how I’ll manage the family. Nothing makes sense anymore and I am awaiting a miracle.” 

Like the 40-year-old, several direct and indirect employees of Ford expect for a miracle and fear that they may not get employment again, especially during the pandemic that has shrunk job opportunities in the automobile sector. 

Senthil said: “Most of the people will not get employment anywhere... There is unemployment everywhere, especially due to the pandemic. The companies are reducing permanent workers and are increasing contract workers. In this backdrop, people above 45 years can never go for another job.” 

He added: “All their lives are under question. Many of them have children studying in schools, and some of them have pending loans. Our lives are not going to be the same anymore.” 

On the day the unfortunate announcement was made, 15 workers from the company were getting married, Senthil said, expressing concern how all these families would manage after being rendered jobless. 

“People are coming to me, crying, and asking me to find jobs for them. It looks like the company does not want to extend the employment, so only the government can do anything by intervening,” he said.

Workers Meeting Govt Officials Today 

The workers’ association have, meanwhile, submitted a letter to Tamil Nadu Rural Industries Minister T.M. Anbarasan and have demanded Chief Minister MK Stalin’s intervention to bring a solution to their miseries. Senthil said: “We have given a letter to the Minister Anbarasan and we have a meeting with officials on Monday. We hope the government will intervene and help us.”

The employees are expecting the Tamil Nadu government would either help with smooth transfer of the company from Ford to another company along with the workers, or arrange for alternate employment for them.

 On Sunday, the state government announced special incentives to attract buyers for the Ford factory. It announced to offer similar financial benefits as given for setting up a greenfield plant in Tamil Nadu. 

Settlement talks with Ford are scheduled on Monday.