Forging hope amidst closure: New beginnings for GM's Talegaon Plant?

The workforce at the facility holds onto aspirations of resurgence, hopeful for opportunities with Hyundai's asset transfer deal

The General Motors (GM) plant in the Talegaon industrial belt paints a picture of quiet solitude on a Saturday afternoon. The sprawling 300-acre stretch on the outskirts of Pune in Maharashtra boasts vibrant greenery nurtured by recent monsoons. A meticulously landscaped pathway from the main entrance is lined with well-groomed plants.

Inside the facility, a couple of contract workers can be spotted. According to the gate security, they're engaged in plant maintenance tasks. Outside, a dusty notice-board displays a collection of half a dozen notices from GM India, their content barely discernible under layers of accumulated dust. Amidst the haze, one notice from June 15, 2021 stands out — it pertains to information about the plant's closure and an offer for a voluntary separation scheme (VSS) for workers. Back on November 20, 2020, GM India had approached the Maharashtra government with a request to shut down the Talegaon unit, where the Chevrolet Beat hatchback for export was produced. After closing its domestic sales operations in 2017, GM India had sold its Halol plant near Vadodara in Gujarat to China's SAIC Motor Corp.

Anish Mhatre (name changed on request), a veteran employee of over a decade at the site, reflects on the past with a hint of melancholy. “We bid farewell to the last car in December 2020, and we adorned it with garlands. We were well aware of the impending plant closure and the loss of livelihoods. However, we refrained from strikes, property damage, or non-cooperation with the plant management,” he says, his eyes swelling with emotion.

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A gathering of several hundred workers convened last Saturday at the Ramkrishna More auditorium in Chinchwad, approximately 30 km from the Talegaon plant, aimed to chart the way forward for the workers who were facing an uncertain future due to the plant's closure. Of the over 1,000 workers affected by the closure, about 110 accepted the VSS, while the rest are now navigating the intricate path of being part of the asset transfer deal between GM and Korean giant Hyundai Motor India Ltd (HMIL), seeking to be part of it.

Speaking anonymously, a member of the General Motors Employees Union shares, “We're optimistic that the Mumbai High Court will soon consider our petition challenging the asset sale to HMIL without addressing the workers' transfer issue. We've sought legal advice, engaged with state government representatives, and presented our perspective. We believe a resolution will emerge soon.” Workers, though hesitant to reveal their names, are eager to voice their experiences.

Another worker, a hint of desperation in his voice, asserts, “We're not instigators of trouble. We're diligent labourers seeking absorption by any party that acquires the plant.” He adds that during the past couple of years, they've made ends meet by engaging in odd jobs. Some have taken up roles as delivery personnel for food apps, while others work in neighbourhood stores.

With an average age of 35, the majority of the roughly 900 former GM Talegaon workers are grappling with a growing sense of urgency as job opportunities diminish. “Average salaries are around Rs 50,000 per month. In the neighbouring areas of Pimpri-Chinchwad and Talegaon, workers with nearly two decades of experience earn around Rs 90,000 per month on average. While we've already faced substantial losses, our relatively high salaries could deter a new buyer from absorbing us,” another worker explains.

The prevailing sentiment among workers revolves around parking the VSS funds in a scheme that would provide monthly components instead of lump sums (equivalent to 110 days of salary for each work year along with statutory dues). Workers are open to accepting reduced salaries if a buyer opts for such an arrangement.

Sources with insights into the situation suggest that a resolution might be on the horizon. Both the state government's industries and labour department and GM, as well as the prospective (HMIL), seem keen on finding a resolution. A source closely connected to the negotiations hints, “While not all, a significant portion of the workers — approximately 600 — might find absorption as a plausible outcome.” Detailed discussions are expected to begin soon.

When approached for comment, an HMIL spokesperson said, “Hyundai Motor India has entered into an asset purchase agreement (APA) only with General Motors India. The APA signifies an agreement that finalises terms and conditions for purchase of equipment, machinery and other identified assets.” The spokesperson declined to elaborate further.

GM's Talegaon plant boasts a production capacity of 130,000 vehicles. Earlier this year, HMIL signed a term-sheet for acquiring the asset and subsequently formalised an asset purchase agreement for land, buildings, machinery, and manufacturing equipment situated at the plant. The successful completion of the acquisition is contingent upon fulfilling certain conditions and obtaining regulatory approvals.

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A GM official spokesperson said, “We acknowledge the decision to approve the closure application for the Talegaon site and are grateful for the support of the Maharashtra government for GM’s operations at the site over a number of years. We note that the approval includes provision of a settlement package to impacted employees of 110 days of wages per year of service. Impacted employees have already received statutory benefits, and we encourage them to come forward to accept the balance of the separation package. Employees can contact the plant HR team to initiate the final settlement process.”

Insiders suggest that HMIL is poised to inject substantial funds into the plant should the deal materialise, potentially creating employment opportunities for around 1,800 to 2,000 individuals. Unsoo Kim, managing director and CEO of HMIL, revealed plans for an advanced manufacturing centre for India-made cars in Talegaon. The rollout of HMIL's manufacturing operations in Talegaon is projected for 2025.

In the midst of nostalgia, a few hundred workers clad in their old GM t-shirts gather in Chinchwad, eagerly awaiting the rejuvenation of the silent plant.