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 General Motors India announces  voluntary separation scheme for Talegaon factory employees, union rejects

General Motors India Announced the final “voluntary separation scheme” for workers in the closed Taregaon factory. Maharashtra according a report published in Economic Times.

This scheme, which is 50% higher than previous offers, is aimed at a truce between workers and companies who have been engaged in loggerhead turtles for the past six months. The new scheme will replace the previously offered 75-day payment plan with a 110-day salary separation package for each year of service.The scheme will expire on June 30th.

The revised scheme is 20% higher than the separate package offered to workers at the Haloli factory. Gujarat..

According to the company, the average salary is equivalent to a salary of 3 years and 7 months after tax, with additional benefits.

If the employee does not accept the offer before the expiration date, the company will enforce Section 25M of the Industrial Dispute Act, which deals with the conditions for dismissing factory workers, and will suspend payments to 1,550 workers.

George Svigos, communications director at GM International, told ET that the company is still pursuing a formal closure of its Talegaon plant. Factory production ceased in December 2020.

“We had a constructive discussion with the union about VSS and employee migration. We have the opportunity to play a constructive role in helping the union sign a separation scheme that provides employees with a salary of 110 days a year.” Said Svigos. Added.

The company hopes a solution, but workers are dissatisfied with the final offer and will continue to negotiate.

Sandeep Bhegade, chairman of the General Motors Employees’ Union, told ET that the scheme was unacceptable to the union, which was communicated to the company in writing.

“The revised VSS does not consider the future of workers. If this is their final plan, the union will not be accepted. The union will not accept this issue through discussion or in a non-violent way. We will continue our efforts to resolve the issue. Considering the future of union workers, through the courtroom. ”

Interestingly, the union sought suggestions from 1,550 members on whether to adopt the system or seek continuity of work. Over 95-98% of workers chose the latter. But this was before GM made the final offer.