GM shuts Halol unit, workers protest

AHMEDABAD/NEW DELHI: General Motors, the first automaker to set up a plant in Gujarat 21 years ago, shut operations at its Halol factory on Friday even as a stalemate continued over the future of 500 employees, who feel they have been “left in the lurch”.

The workers have been on a strike—”without affecting production”—for 35 days demanding that they be retained by Chinese automaker SAIC which will take over the plant.

“The consolidation of manufacturing at our Talegaon unit (near Pune) is an important milestone for GM India,” Kaher Kazem, GM India president and MD, said.“We are mindful of the impact on employees at Halol. We have committed to support them through this transition with generous separation payments or the option of continuity of employment at Talegaon.”

The Indian unit of the Detroitbased auto giant had in July 2015 announced the closure of the Halol facility by mid-2016, seeking to consolidate India manufacturing operations at its Maharashtra plant. However, it decided to continue production till March 2017 to ensure an orderly transition for suppliers and other stakeholders.

SAIC, formerly Shanghai Automotive Industry Corp., is likely to take over some of the assets of the plant, but the deal did not mention the employees.

After a few of the employees accepted relocation to Pune and many accepted the VSS -- worked out with a formula of 100 days of salary per year of service, uncapped -- around 500 workers were left without a job.

“We have been protesting, but silently by observing a fast. And, we have not let the issue affect the production in any manner,” union leader Ranchit Soni said.