General Motors India and Union workers talks with mediator collapses, legal stalemate likely to continue

The two rounds of negotiations between workers union and General Motors India have collapsed with the court mediator to resolve the matter out of court. The legal battle has been holding up the closure of Talegaon factory for over 26 months.  

The Pune Industrial Court appointed mediator met both the parties in the last fortnight twice – on the 21st of February and the 1st of March leading to no resolution – indicating that the legal stalemate continues.

The attempt to settle the issue out of court was happening parallelly, as the US car maker is exploring potential suitors to sell the factory and exit the Indian market, that has not led to any outcome so far say people in the know.

When queried on the outcome of the mediation process, the General Motors India spokesperson told Autocar Professional, the company entered mediation with the sincere belief of reaching a positive outcome.  However, it is very disappointed with the reluctance of the Labour Union’s representatives to suggest any concrete proposal.

“The position that the union has adopted for the last two years has been to reject all good faith efforts by GM to arrive at a negotiated settlement that benefits the workmen. GM has wanted and has always been working for an outcome to support impacted people through their transition.  GM remains confident of its legal position and will continue to pursue its remedies in accordance with law,” added the spokesperson. The union president was not available for the comment.

However, people close to the workers union said that the company presented the same separation package in front of the mediator as it did two years ago, which was rejected by the workers. The workers have stuck to their stand of continued employment, which is unacceptable to GM India.

Interestingly the company presented the VSS scheme yet again to the workers on the 23rd of January before the mediation process could begin, but none of the workers accepted the scheme again, which was open for 15 days.  

The decision by the Pune Industrial Court to appoint a mediator was taken after the Supreme Court had directed the Industrial Court to resolve the matter by February 2022, which is not concluded yet.

The report of the mediation process has been submitted, the details of it are yet to be revealed.