General Motors may be in danger of getting yorked on the first ball in its new innings in India. The workers at its factory in Halol, Gujarat, which will be shut later this year, have threatened to go to court against the company.
“This is a clear case of exploitation where workers will be forced to quit and look for another job. Next month onwards, they are going to get only basic salary,” said Nihil Mehta, general secretary, Gujarat Kamandar Mandal, which represents 900 of the 1,100 workers in the factory.
“They haven’t been given three months’ notice as per rules. We will take the matter to court,” Mehta said.
GM said on Wednesday that it will shut the factory and start negotiations with the workers for an amicable settlement. The $1 billion it is investing in India will go primarily to expand capacity at its other factory in Talegaon, Maharashtra.
“We have communicated to the workers about the decision to shut down the plant, but will give every opportunity to the workers to apply for a post at Talegaon,” said Arvind Saxena, president and MD, GM India. “We are looking at various alternatives to find a solution.”
The Halol factory has a capacity to produce 110,000 units per annum. GM produces the Tavera and Enjoy multi utility vehicles at the plant.
Closure of the facility is part of the company’s restructuring plans to concentrate production at Talegaon.