US pharma major Pfizer is said to have formulated a compensation package for its workers at Chennai and Aurangabad production facilites which are being closed down by the company due to the lack of commercial viability.
The financial package includes 75 days of wages for every year of service with company or wages for the remaining months of service with the company till the attainment of retirement age of 58 years, said sources privy to the development.
Apart from this, notice pay, leave encashement and early bird incentive of Rs 7 lakh along with Rs 5 lakh towards ‘group participation’ will form part of the financial package, which will take the average compensation to somewhere around Rs 15 lakh, according to a communication sent out by Pfizer Healthcare India Private, to the effected employees.
US pharma major Pfizer is said to have formulated a compensation package for its workers at Chennai and Aurangabad production facilites which are being closed down by the company due to the lack of commercial viability.
The financial package includes 75 days of wages for every year of service with company or wages for the remaining months of service with the company till the attainment of retirement age of 58 years, said sources privy to the development.
Apart from this, notice pay, leave encashement and early bird incentive of Rs 7 lakh along with Rs 5 lakh towards ‘group participation’ will form part of the financial package, which will take the average compensation to somewhere around Rs 15 lakh, according to a communication sent out by Pfizer Healthcare India Private, to the effected employees.
When contacted a Pfizer spokesperson declined to comment on the exact quantum of the amount being offered as compensation. “Our priority at this time is to support colleagues impacted by our decision to exit the Aurangabad and Chennai sites. We are committed to ensuring a fair and transparent process for our colleagues and have offered an attractive financial support scheme, the payouts under which are significantly higher than the statutory requirements. We are not able to provide additional details at this point,” the spokesperson said.
Pfizer on January 8 decided to shut down two of its Indian manfacturing plants — Irungattukottai (Chennai) and Aurangabad (Maharashtra) — owing to lack of commerical viability. The US pharma company had secured these plants when it acquired Hospira in 2015.
The recommendation to exit Chennai and Aurangabad sites had been the result of a significant loss of product demand making manufacturing at these sites unviable, a Pfizer spokesperson had said.
The Chennai plant employs around 1,000 employees and Aurangabad site has close to 700 workers, while both the sites are purely export-oriented sites and do not supply products for Pfizer’s India commercial operations.
The Chennai plant employs around 1,000 employees and Aurangabad site has close to 700 workers, while both the sites are purely export-oriented sites and do not supply products for Pfizer’s India commercial operations.
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