Automotive industry seems to be affected by some bad times, earlier it was Toyota now its Ford which is witnessing employee protest at the Chennai's Ford plant. The reason for protest this time around is stated to be due to a cut in employee incentives from 26% to 15%. A senior union representative said, “To show our unhappiness, we started an agitation by skipping lunch at the company's canteen in the factory. Also, we didn't avail of the transportation offered by the company.” The protest is staged peacefully and for now the production numbers are not affected.
Ford in response to the protest, have justified the reduction in performance incentives by stating that the performance metrics are based on an open and transparent process. Workers have been supportive untill now and are communicating with senior personnels. Managers have taken an open door approach to discuss on metric progress and answer queries from the workers. Multiple dimensions based on internal and external factors that determine performance metrics on an annual basis are being explained to the workers. On an average, Ford manufacturing unit has around 5,000-6,000 people strength on the floor at a given point in time.
Worked seemed to be surprised with the reduction as the company had given out of 26% as performance incentive in 2012, when production recorded was around 106,000 units; and now, with an increase in production to 122,000 units the performance incentive has been reduced to mere 15%. A source from the company said, “The workers, numbering up to 4,500 (including 2,500 permanent employees), have been cordial with the management for years and do not see any valid reason for the management to effect a sharp cut in production incentives. Despite our repeated attempts, there has been no clarification from the management on this issue. The management's argument that 'incentives on performance metrics is an open and transparent process' is not understandable and not acceptable. We want the management to implement this without effecting any cut. Rather, we have produced more cars in 2013 than in 2012 — 1.16 lakh units in 2012 vs 1.23 lakh units in 2013.”
Speaking about the issue, Ford's spokesperson said, “Despite tough market conditions, Ford India continues to provide best-in-industry work environment, incentives and is creating significant employment opportunities. Ford India has a valid and well-functioning employee participation forum made up of interested and democratically elected employees with whom we enjoy a strong relationship and we prefer to have these discussions within the company and our employees to respect confidentiality.”
