As workers begin strike, GM says it offered 7X the required compensation

The erstwhile workers of General Motors India started their indefinite hunger strike on October 2, protesting their alleged non-absorption by Hyundai Motor India

General Motors (GM) has stated that it has done all it could to find a resolution to the impasse with workers at its now-closed factory near Pune, as reported by The Economic Times (ET). The company has offered a severance package that is seven times greater than the statutory requirement to the workers, even as more than 1,000 dismissed GM employees have opted for an indefinite hunger strike.

The former GM employees chose to strike after their planned employment by Hyundai Motor India did not materialise. Hyundai has signed a contract with the American automotive company to acquire the Talegaon facility. According to a GM spokesperson cited in the ET report, General Motors is eager to finalise the agreement with Hyundai Motor India.

"All individuals previously employed by General Motors at the Talegaon plant have been legally separated from GM and were offered a severance package exceeding seven times the statutory requirement. The labour union declined to accept this package, even when offered through the Bombay High Court. General Motors took all necessary measures, and more, to offer fair compensation to employees, despite the actions of the union," GM told ET in a statement.

Concerning the commercial agreement with Hyundai Motor India, a GM spokesperson stated that the company anticipates signing the final contract for the sale of the Talegaon plant, allowing the buyer to begin investing in opportunities and growth in Maharashtra. Hyundai Motor India has entered into a term sheet with the Detroit-based company for the acquisition of the Talegaon facility. Following the signing of the deal, the Maharashtra government approved the application to close the plant.

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What has transpired thus far?

The former employees of General Motors India initiated their indefinite hunger strike on October 2 in protest of their alleged non-employment by Hyundai Motor India. The employees are calling for their employment by the new owners of the factory. This hunger strike is likely to further hinder the commercial agreement between Hyundai and GM, as Hyundai aims to expand further in the Indian market. Hyundai Motor India entered into a contract with the American automaker on March 13 to acquire the Talegaon facility.