GM To Consider Fresh VRS Applications From Halol Plant Workers

GM has announced that they will officially re-open the deadline to submit VRS requests. This move is so that certain employees that do not wish to move to the Talegaon facility could avail of the VRS packages that were initially offered for a very specific time period. Although General Motors will once again open the window to apply for the VRS packages, the actual package will remain exactly the same as originally offered.

By Cyrus Dhabhar

1 mins read

Published on May 5, 2017

Highlights

GM re-opens deadline to consider VRS application from Halol plant workers
Workers who opt not to take the scheme might be transferred to Talegaon
The Halol GM factory has been under utilised due to poor sales in India

The General Motors’ Halol plant in Halol, Gujarat officially started winding down production last week after the company announced a closure of the plant and consolidation of production to their second Talegaon facility. The Halol factory is set up be taken up by SAIC, formerly Shanghai Automotive Industry Corporation. The takeover though does not mention any announcement for the current employees of the plant but only the actual plant itself. The workers and the union have been protesting for over a month now and all those workers who had not signed the VRS scheme before a certain cut-off date, were automatically said to have been transferred to the Talegaon facility. Now though, after a plea from several employees, General Motors has announced that they will officially re-open the deadline to submit VRS requests. This move is so that certain employees that do not wish to move to the Talegaon facility could avail of the VRS packages that were initially offered for a very specific time period. Although General Motors will once again open the window to apply for the VRS packages, the actual package will remain exactly the same as originally offered. “As we continue to consolidate GM India manufacturing at our Talegaon plant, we are listening to our employees and supporting them through the transition,” said Kaher Kazem, GM India President and Managing Director. “At the request of employees, we will consider fresh applications for the generous separation packages. The package remains unchanged. We are mindful of the impact on our workforce of ceasing GM production at Halol, but we need to ensure our manufacturing consolidation remains on track. Halol employees have the option of a generous separation payment or continuity of employment at our Talegaon facility.” The workers at the Talegaon facility have been observing a silent protest at the Halol factory for over a month now without affecting production. A few of the workers at the factory have accepted the transfer to Talegaon, on the outskirts of Pune while some have accepted the VRS which paid them for just over three months of service as a parting settlement. General Motors officially started making cars in the Halol plant in 1996 with Opel at first and then Chevrolet post 2003. The plant, which has a total capacity of over 1 lakh vehicle has been severely under utilised in the last few years due to falling sales figures for GM in India. That said, Chevrolet is all set to launch the new Beat in India in July with updated styling and interiors.