Stand 'firmly' with General Motors Talegaon workers: Maharashtra CM

State government assures workers, says better compensation, jobs among solutions being worked out

The Maharashtra government has said that it stands “firmly" with the workers of the now-closed General Motors India (GMI) plant in Talegaon, near Pune. Chief Minister Eknath Shinde emphasised the commitment to ongoing efforts in a meeting held at his official residence, Varsha Bungalow, in Malabar Hills on Tuesday.

At the meeting, the government discussed the importance of GMI providing fair compensation to its workers and the possibility of some of them finding employment with Hyundai Motor India (HMIL).

In August, HMIL had signed an agreement to acquire the "land, buildings, certain machinery, and manufacturing equipment" of GMI's Talegaon plant. HMIL plans to start production at this facility by 2025.

Among those who attended the meeting were Maharashtra Industries Minister Uday Samant, Labour Minister Suresh Khade, Principal Secretary of the Labour Department Vinita Ved Singal, Principal Secretary of the Industries Department Harshdeep Kamble, and Maharashtra Industrial Development Corporation CEO Vipin Sharma. The meeting also included senior officials from GMI, representatives from trade unions, workers and other stakeholders.

HMIL did not wish to comment on the matter.

Of the 1,578 workers from the GMI Talegaon plant, 696 have already left their positions after accepting compensation from the company. The remaining are seeking increased compensation and potential employment opportunities with HMIL.

“The Chief Minister directed that the General Motors management should reconsider the demand of increased compensation of the remaining workers,” a statement from the government said.

“Hyundai will start this project in 2025. Full support at government level will be given to start this project. This project will provide huge employment opportunities. Therefore, the Chief Minister also assured that necessary follow-up and efforts will be made to ensure that workers who did not accept compensation, and skilled and semi-skilled workers should be taken into service on priority basis,” the statement added.

When Business Standard visited Talegaon in August, the workers said they hoped to be absorbed by HMIL.

A member of the General Motors Employees Union shared their optimism about the Mumbai High Court considering their 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,” the worker said. With a hint of desperation in his voice, another worker added, “We're not instigators of trouble. We're diligent labourers seeking absorption by any party that acquires the plant.”

The majority of the approximately 900 former GM Talegaon workers, with an average age of 35, are experiencing a growing sense of urgency as job opportunities become scarcer.

“The 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,” a worker said. “While we've already faced substantial losses, our relatively high salaries could deter a new buyer from absorbing us.”

The predominant sentiment centres on directing the Voluntary Separation Scheme funds into a scheme that would provide monthly disbursements instead of a lump sum amount (equivalent to 110 days of salary for each work year along with statutory dues). The workers are open to accepting reduced salaries if a buyer opts for such an arrangement.

The South Korean carmaker has not disclosed the amount it will pay the American firm to purchase the plant, which has an annual production capacity of 130,000 units. HMIL has already enhanced its production capacity (at the Sriperumbudur plant in Tamil Nadu) from 750,000 units to 820,000 units in the first half of this year. This acquisition will enable HMIL to increase it further to 1 million units per year.

HMIL, the second-largest carmaker in India after Maruti Suzuki India, had previously signed a term sheet with GMI for the potential acquisition of the assets at the Talegaon plant.

"The completion of the acquisition and assignment of Talegaon plant is subject to the fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders," HMIL had said in August.

GMI workers have been actively protesting for absorption by the future buyer. In early October, the General Motors Employees Union organised a chain hunger strike and criticised the Shiv Sena-Bharatiya Janata Party government, led by Eknath Shinde, for not taking the unemployment issue of thousands of auto firm workers seriously.

GMI had ceased selling cars in the domestic market in 2017 as part of a global restructuring plan after more than two decades of operations in India. 

Talegaon tales

2006: GM India starts building the Talegaon plant

2008: Production at site begins

Dec 2017: GM stops selling cars in India, but Talegaon plant continues making Beat cars for export

Jan 2020: GM and China’s Great Wall Motors sign agreement for plant’s acquisition

Dec 2020: Talegaon plant closed

June 2022: Talks fall through

March 2023: GM and HMIL sign term-sheet for plant’s acquisition

August 2023: HMIL signs asset purchase agreement with GM