Companies

GM firm on closing Talegaon facility, says not looking at alternative options

Our Bureau Pune | Updated on January 22, 2021

General Motors plant at Talegaon in Maharashtra   -  BUSINESS LINE

Urges labour union to negotiate separation package

General Motors production has ceased and there will be no future production at the Talegaon site. GM took the decision to close the site because there is no demand in export markets for the vehicle previously made in Talegaon. Work on completion of the sale of the site, announced recently, is pending FDI approval and GM is not considering alternative options, George Svigos, Director of Communications, GM International, said in a statement issued on Friday.

“Contrary to the claims of the labour union, GM completely rules out any scenario in which it would reinvest in the site. We repeat our call for the union to cease spreading misinformation to its members and to negotiate a separation package. Our current offered package is well in excess of the legal minimum of 15 days per year of service, but the union is refusing to engage substantively” the statement added.

Also read: Maharashtra rejects GM’s application for closure of Talegaon plant

“We will move for the reversal of the order as soon as possible and firmly believe the law is on our side. We do not understand how the State can require any company to remain in operation when there is no work to be done, especially given that GM has a strong and credible track record of labour relations in India and is committed to offering a more than fair separation package to the workforce,” the company said.

The company has expressed surprise over the Maharashtra government’s stand saying that it diverges sharply from Maharashtra’s business-friendly reputation as it seeks to prevent the orderly exit of a long-time investor who has carefully followed all required State procedures concerning closure.

“It sends a concerning message to any potential future investor who wants to bring jobs and investment to the State. Effectively, the State’s decision amounts to a requirement that GM either produce vehicles for which there are no customer orders, or pay workers indefinitely for doing no work. We reject both suggestions,” the statement added.

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Published on January 22, 2021
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