The General Motors Employees Union (GMEU) has challenged the layoff announced by the company alleging it is illegal. The move comes three days after the Detroit-based automaker invoked Section 25 of the Industrial Disputes Act and retrenched all the 1,419 workers employed by the Talegaon factory. It cited the global pandemic as the reason behind the step. The company stopped selling cars in the domestic market in 2017 and stopped the production completely on December 24, 2020.
“Due to the rapid upsurge of the Covid-19, pandemic, we have been forced to lay off the workmen,” GM said in a notice on 16 April. It said the company has laid off 1419 workmen under the Industrial Disputes (Maharashtra) Rules, 1957. The workmen are entitled to receive compensation with immediate effect. These workmen shall be paid 50 per cent of the total basic wages and dearness allowances, if any.