A union in India has sued the local unit of General Motors and its global CEO for failing to pay court-ordered compensation to laid-off factory workers, deepening The U.S. automaker’s struggle to leave the country years after shutting down local operations.
GM stopped selling cars in India in 2017 after years of low sales, but its complete exit from the market has been marred by troubles including legal disputes with workers and a failure to find people. bought the factory in the western state of Maharashtra after negotiations with the Chinese Giants. Wall Motor collapsed last year.
GM and its factory workers – who were accused of being illegally terminated after the company decided to pull out – have been embroiled in legal battles since 2021. The latest filing signals an escalation. escalated the dispute when workers accused the GM India unit and its executives, including CEO Mary Barra, of disobeying a court order.
In a filing filed with Bombay High Court on January 16, the General Motors Employees Union of 1,086 factory workers claimed that the company had not paid them compensation equal to 50% of their monthly wages. since last April, at the request of a local industrial plant. documents show the court while it continues to hear the dispute.
A union leader told Reuters that GM so far owes workers about 250 million rupees ($3 million) in wages, based on an industrial court order.
A GM spokesman said the company remained “very confident” about its regulatory position. Added: “GM is continuing to explore options for selling (factory) locations”.
In earlier court filings, it was said that the industrial court acted beyond its jurisdiction in ordering compensation. The company previously said it tried to resolve the issue amicably and offered workers a generous severance package.
The union disagreed, and said GM continued to “flagrantly violate” an industrial court order by not paying workers a dime. In its latest filing, the union called on the court to disregard the company and its executives and punish them with imprisonment.
“The workers are unable to feed their families, pay for medical expenses, pay for their children’s education,” the union said in the filing, which has not been previously reported.
The case is likely to be heard in the coming days.
India has been the graveyard of a number of Western automakers, especially American companies, which have struggled to break the dominance of Japan’s Suzuki Motor and South Korea’s Hyundai Motor. The same companies hold about 60% of the market share. Like GM, Ford Motor ceased operations in India in 2021.
GM stopped selling vehicles in India at the end of 2017, but one of its two factories will continue to produce vehicles for export until December 2020. After that, GM stopped all operations and moved to close the plant in Maharashtra but did not get permission.
The state government has denied GM’s request to close the plant – a move the company previously said would send a “relevant message” to potential future investors.
Date of first publication: January 20, 2023, 12:45pm IST
