GM exit plan for Halol unit irks workers

In a major set back for Gujarat's bid to become an auto hub in India, one of the oldest multinational car makers in the State, General Motors on Wednesday told its workers at Halol facility about cessation of manufacturing activity from June 2016.

On Wednesday, the management of the company led by Mary Barra, Chief Executive Officer, GM, held a video conference with the workers at Halol, informing them about company's decision to close the unit from June 2016 onwards.

Termed as the mother plant of the company, which started GM's India operations in 1996, the Halol unit had faced severe labour issues in the past with repeated strikes during 2010 to 2014.

"During the video conference, the chief executive told the workers that 'the plant did not have good performance'. Therefore, (it is) being shifted to Pune. Workers have been a year's time to prove their worth by working without any additional allowances and perks," claimed Nihil Mehta, union leader at GM's Halol plant and general secretary of Gujarat Kamdar Mandal.

"We explore our legal options to challenge this decision," added Mehta.

Calls and SMS to company's spokesperson and vice president, P Balendran received no response. An emailed query regarding the matter remained unanswered till going into print.

In a notice addressing the workers and signed by the Plant Manager, S K Garg, the company mentioned that running two manufacturing sites was not in accordance with the company's new business strategy. "The company is considering several options for the future of Halol plant... These options include selling of the plant and other alternate arrangements. The decision will affect the Halol plant workers. Many workers will be transferred to GM's other plant and some will be given offer to join again. But many others will have to be laid off after closure of work post June 2016," the letter read.

According to Mehta, there are about 1,200 workers presently employed at Halol plant, of which about 900 are permanent workers and 300 contractual.

Company's Halol plant has remained mired in controversies due to worker unrest. In October 2010, there was a four-day strike by workers for higher wages. Again in March 2011, the Gujarat Kamdar Mandal with support from Indian National Trade Union (INTUC) called for an indefinite strike of 900 workers raising health hazard issues. The strike lasted for about six weeks. Later, in 2014, contractual workers resorted to strike for wage and other related issues.

This time, as mentioned in the letter to employees, GM has offered compensation to employees much more than the minimum legal provisions like one-month salary for every year in service, basic monthly salary beginning from August 2015 till the operations are closed. "This is subject to peaceful and seamless operations during the year," the company's letter said.

The Halol facility is spread over an area of 172 acres with an annual manufacturing capacity of 1,10,000 units. However, according to worker sources, the company had significantly reduced manufacturing at Halol facility.

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