GM India asks staff in its Talegaon plant to accept separation package or face litigation

Updated : February 23, 2021 12:47 PM IST

The move by the company comes hours before the Maharashtra labour minister is set to hear from both the company management and representatives of the employees union.

The company stated in the letter that if it takes the path of litigation then it will reset all benefits to the statutory minimum.

US auto giant General Motors (GM) has urged the employees of its now-closed Talegaon plant that they have to face litigation unless they accept the separation package offered by the company. The American carmaker, who ceased operations from the plant in December, made its position clear in a letter written to the employees union.

The move by the company comes hours before the Maharashtra labour minister is set to hear from both the company management and representatives of the employees union.

The company stated in the letter that if it takes the path of litigation then it will reset all benefits to the statutory minimum. This in turn will mean that the company will withdraw the "generous VSS package deal” that it had offered the staff.

Terming the decision to close the plant irreversible, the company added that it has received no export orders to keep the plant operational.

Earlier, the US auto major kicked off the first phase of the strategy to exit from the India market by stopping sales and closing down its facility in Gujarat’s Halol three years back. While the Gujarat facility continued functioning after it was taken over by MG Motor India, the plans to transfer the Talegaon facility located near Pune to Great Wall Motors, took a hit following the rising tension between India and China.

GM India asks staff in its Talegaon plant to accept separation package or face litigation

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