SAIC says Halol deal subject to GM settling labour issues

The deal is subject to GM securing all govt approvals and settling pending labour issues

China's Shanghai Automotive Industry Corp (SAIC) today clarified that it had signed a term sheet to evaluate General Motors India's Halol plant near Vadodara, but no formal agreement had been signed.

"SAIC has not signed any formal agreement with GM for the Halol plant. A few months ago, SAIC signed a term sheet to evaluate the plant, which has been conveyed in a filing to Shanghai Stock Exchange, SAIC being listed there," an SAIC spokesperson said.  

"SAIC's Halol plant deal is subject to GM's submission of all government approvals and settlement of labour and all other pending issues by GM," the spokesman added.

Around 625 permanent workers at the Halol plant have refused to accept the voluntary retirement package offered by GM India. Workers at the plant are on hunger strike since March 21 protesting against their transfer to Talegaon. GM India has transferred 300 workers to Talegaon.

“GM India has offered a generous separation package for employees as well as transition support. Further, the company has offered continuity of employment through transfer to our Talegaon plant, where we are consolidating our manufacturing," a GM India spokesperson said.

The company added it was working with employees, government authorities and labour unions to ensure an orderly transition. "We are progressing on the sale of the plant, where production will end on April 28," the spokesperson added.

Sources said SAIC was in talks with the Maharashtra government for setting up a plant in the state. "S‎AIC continues to evaluate options for setting up a car manufacturing plant in India as early as possible," the SAIC spokesperson noted.