A union in India has sued General Motors local unit and its global CEO for failing to pay court-ordered compensation to sacked factory workers, deepening the U.S.
A union in India has sued General Motors local unit and its global CEO for failing to pay court-ordered compensation to sacked factory workers, deepening the U.S. automaker s struggles to exit.
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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.
General Motors claims that the lay-off has been declared because of the Covid-19 pandemic. The company claims that it will pay the employees a compensation, which is 50% of the basic wages and dearness allowance previous monthly take home.
General Motors India has laid off 1,419 employees at its plant in Talegaon, near Pune. The company sent notices to all the concerned employees through an email, a copy of which was sent to the secretary and president of the General Motors Employees Union. The employees union is likely to challenge this move legally.
The company claims that the lay-off has been declared because of the Covid-19 pandemic which is a natural calamity and no prior permission is necessary for it under section 25-M of the ID Act. It has intimated the Additional Commissioner of Labour, Pune about the lay-off due to the pandemic.