The IR (industrial relation) scene has of late come under strain in many global automakers that operate factories in India.
U.S. carmaker Ford is the latest to be at the receiving end of workers’ ire. The workers at its car plant near here are up in arms against the decision of the management to cut incentives.
Workers have expressed their unhappiness through silent protests by not utilising the company’s facilities such as transportation. They are upset over a 10 per cent cut in incentives . Ford’s factory near Chennai employs over 5,000 people. It can produce two lakh cars and 3.3 lakh engines a year. It is also an export hub for engines and compact models.
However, there has not been any fall in production of vehicles at the Chennai plant, even though the domestic market is sluggish, Ford has been exporting its models, particularly the compact SUV EcoSport in big numbers, to take advantage of currency depreciation. Thus, during April 2013-February 2014, Ford’s total passenger vehicle production went up by 20 per cent to 120,190 units. During the period, it exported 42,639 units and sold 78,113 units (up nine per cent over a year-ago period) in the domestic market.
The key reason behind the cut in incentives for workers, therefore, is not known. But when asked about the labour resentment at its factory, Ford said, in a statement, that incentives on performance metrics was an open and transparent process at Ford India. “We have full support of all the workers with such communications happening at regular intervals where managers discuss the progress to a metric and answer queries. There are multiple dimensions in determining performance metrics, which varies year-on-year on the basis internal and external factors,” it said.
The company also said it had a valid and well-functioning employee participation forum with whom it enjoyed a strong relationship, and preferred to have those discussions within the company.
