General Motors Employees Union challenges lay-off
The General Motors Employees Union (GMEU) has challenged the lay-off announced by the company, alleging it is illegal. The move comes three days after the Detroit-based automaker invoked Section 25 of the Industrial Disputes Act and retrenched all the 1,419 workers employed at the Talegaon factory. It cited the global pandemic as the reason behind the step. The company had halted production on December 24, 2020.
The General Motors Employees Union (GMEU) has challenged the layoff announced by the firm, alleging it is illegal.
The move comes three days after the Detroit-based automaker invoked Section 25 of the Industrial Disputes Act and retrenched all the 1,419 workers employed at the Talegaon factory.
It cited the global pandemic as the reason behind the step. The company stopped selling cars in the domestic market in 2017 and halted production completely on December 24, 2020.
“Due to the rapid upsurge of the Covid-19, pandemic, we have been forced to lay off the workmen,” GM said in a notice on April 16. It said the company has laid off 1,419 workmen under the Industrial Disputes (Maharashtra) Rules, 1957. The workmen are entitled to receive compensation with immediate effect. These workmen will be paid 50 per cent of the total basic wages and dearness allowances, if any.
Since the 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 it necessary under Section 25-M of the ID Act, said the notice.
In a letter to the company on Monday, GMEU said the retrenchment is illegal as the company is not well within its rights to use the provisions enshrined under Section 25M. Neither the central nor the state government has declared the pandemic as a “natural calamity.” Therefore, GM should have taken prior permission from the appropriate authority, it said.
Amid the pandemic, the central and the state governments have requested industries to take care of their employees. Leave aside taking care, GM under the pretext of the pandemic, is laying off people, said GMEU.
According to the union, since the matter is in the district labour court and the final order is pending, General Motors India should not have arbitrarily changed the terms of agreement and announced retrenchment. A copy of the letter has been reviewed by Business Standard.
GM had offered employees a separation package but the two sides failed to reach an amicable settlement on the terms of separation. GM therefore, resorted to retrenchment for wind-down of operations at the site.
The spokesperson claimed that production at the Talegaon plant ceased on December 24, 2020. The company gave employees and the union more than a year’s notice regarding the end of production.