HM hands out pink slips to managerial staff at Uttarpara

Apart from the managerial staff, there are about 2300 workers at the plant, who have already been rendered jobless following suspension of work

Morris Oxford 1948 design
BS Reporter Kolkata
Last Updated : Jun 07 2014 | 10:58 PM IST
An abrupt end to the journey of the Ambassador, the oldest face of India’s automobile sector, seems inevitable. Weeks after a suspension-of-work notice, Hindustan Motors has now issued termination notices to a large section of the managerial staff at its Uttarpara plant.

Sources said about 250 of the 295-strong managerial staff had been issued pink slips. “They are mostly from the plant’s officer-level workforce,” said a source with direct knowledge of the matter.

“Your employment will come to an end with the expiry of your notice period, as applicable to your grade,” an official quoted the letter. The employees, however, were promised they would get all dues applicable till May 31.

The company did not share any details about the termination notices. “Managerial restructuring has been an ongoing process through the last two-three years and continues, in an effort to optimise workflow while retaining the staff that remains critical to the continuity of operations,” said a company statement.

Apart from the managerial staff, about 2,300 workers at the plant have already been rendered jobless, following suspension of work.

Earlier, at a meeting with West Bengal labour minister Purnendu Bose, the company had said it needed time to restructure the organisation and significantly reduce its liabilities.

On May 24, the Hindustan Motors management had issued a suspension-of-work notice at its Uttarpara plant, India’s oldest automobile factory, which manufactured the iconic Ambassador cars. “Low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product, the Ambassador, and large accumulation of liabilities” were cited by the company as reasons behind the plant’s closure.

Since work was suspended at the plant, worker unions have been on a sit-in protest. Two rounds of bipartite meetings between the state government and the management have already been held. Now, the unions are seeking a tripartite meeting to press for their demands.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jun 07 2014 | 9:39 PM IST

Next Story