General Motors India to lay off 1,419 workers at Talegaon plant
According to an ET report, on Friday, General Motors India has laid off 1,419 workers by invoking section 25 of the Industrial Dispute Act.
Commenting on the development Employees’ Trade union said, we will legally challenge the move, report says.
The decision of laying off would lead to a legal tussle between the company and its employees on the winding of General Motors India’s Talegaon plant on the outskirts of Pune.
General Motors was supposed to keep two of its assembly plants shuttered until at least mid-April.
The company has sent layoff notices to all 1,419 employees by e-mail, the copy of that was marked to the secretary and chairman of the General Motors Employees’ Union.
The workers are entitled to get layoff compensation under section 25-C of the Industrial Dispute Act 1947 and they will be paid compensation due to them which is 50% of the basic wages and DA of previous monthly take home.
As layoff has been declared largely because of Covid-19, being a natural calamity, no prior permission from the appropriate authority has been sought, nor is the same necessary under section 25-M of the ID Act,” the letter said.
George Sbigos, International Director of Communications at General Motors, said “the company continues to pay its employees salary even though the vehicle hasn’t been manufactured in the last four months.
He added, “the company’s preferred course of action is to provide employees with a separate package to support the transition from GM.”
“We provided our employees with a separate package that far exceeded legal requirements. Unfortunately, the union refused to negotiate retirement benefits, and the company used it to help shrink its business in the field. I was forced to consider all possible legal options.” Svigos said.
Taregaon plant stopped production on December 24, 2020, and the company had notified employees and unions more than a year ago about the ceasing of the plant.
The company has been paying 10 crore rupees a month for employee salaries since December despite zero production in the Taregaon plant.
Sandeep Bhegade, Union Leder of the company, has confirmed the receipt of the notice and said the union would challenge the same as the authorities concerned.
Svigos further said that GM India remains very confident in its legal position. “We continue to seek the approval of all relevant governments to help shrink our business,” he added.
