HC backs Court Order asking General Motors India to pay 50% wages to staff

As major relief to over 1,000 protesting workers of General Motors India’s plant in Talegaon, Pune, the Bombay High Court has upheld the Pune Industrial Court’s directive to the auto major to pay 50% salary to the employees.

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In July 2021, the Industrial Court in Pune directed the Indian unit of General Motors to pay 50% of the monthly salary to each employee till the final disposal of the case.

At that time, General Motors India’s spokesperson told to media, “GM is confident of its legal position in relation to the lawful separation of workers at the Talegaon site.” And the company will continue to explore our legal options.

And on behalf of General Motors India, the order by the Pune Industrial Court was challenged in the Bombay High Court.

However, the petition that was filed on behalf of General Motors India in the Bombay High Court was rejected this week. The Bombay High Court has upheld the order granted by Pune Industrial Court.

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The employees had claimed that they had been illegally retrenched on July 12, 2021, without the permission of the Government of Maharashtra.

General Motors had earlier argued that state authorities failed to think about the urgent need for closure and rejected the application for closure of the automotive manufacturing unit. The firm additionally argued that it could be compelled to run an industrial unit at a loss.

Since the case relating to the transfer of plant and machinery to Great Wall Motors (GWM) of China along with 300 acres of land at the Talegaon plant, is being heard by the High Court, the Industrial Court refrained from intervening in the matter.

The automaker had submitted that it had suffered losses of Rs. 8,400 crores from its operations in India. Since December 2020, it had no production or work in hand.

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The company is in the midst of a transportation revolution, and General Motors have the ambition, talent, and technology to realize the safer, better, and more sustainable world automaker want.

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