General Motors India is facing problems over its shuttered Talegaon Plant. The US carmaker has asked its staff to accept a generous severance package or face litigation instead.
A report in The Economic Times said the principal union has rejected the move of GM and are demanding job continuity.
It had earlier promised to give the severance package of 75 days for every year of service. But the company has warned the union of slashing the benefit to a statutory minimum of 15 days if the matter is made sub-judice. The severance package is for 1,578 blue-collar employees.
The union has lodged 11 cases before the Pune court and is now set to take the issue with Maharashtra’s labour minister. The sale of the plant to Great Wall Motors, a Chinese carmaker, is still awaited.
The workers had engaged with the company’s management but yet not received any satisfactory response. GM India had issued a letter in response wherein the Vice president of manufacturing has stated that workers should reach an amicable settlement through dialogue as it will not hamper their future employability as well. They must either choose the path of confrontation or litigation.
As per the workers’ union, the compensation offered by the company can never be equal to their regular salary and hence they demanded job continuity.
One other case related to the shut down of General Motors is pending before the Bombay High Court.
Published: February 23, 2021, 14:44 IST
Download Money9 App for the latest updates on Personal Finance.