“We have nowhere to go now. We have slipped into a crisis at the peak of our career,” said Rajendra Gosai, a production team member at General Motors’s Halol facility after the latter put locks on the plant on Friday.
Gosai and many other young workers at the facility of the US car-maker, felt dejected after the company announced its plans to consolidate production at its Talegaon plant in Maharashtra and shut operations at Halol, which has been operational for over 21 years, producing a variety of vehicles.
“I started my career with GM and achieved good financial growth. Now, with the plant closing down, we have nowhere to go because other companies are not willing to match our salaries, and most of us have experience in only one field of automobile. There is no other way but to look for some self-employment,” said 35-year old Gosai, a resident of nearby Godhra.
GM’s dwindling market share in India’s automobile sector and weakening financial position due to mounting accumulated losses — at around ₹8,000 crore — prompted the company to consolidate manufacturing facilities.
GM India President and Managing Director Kaher Kazem said a range of additional support measures have been put in place for employees who opted for the significantly enhanced separation payments as well for those who opted for transfer, including tax and financial advice and pre-transfer visits to Talegaon.
On Friday, workers had mixed reactions — some termed it an “unfortunate but an imminent move”, while some others looked at it as an opportunity to move forward.
Dipak Mistry, a 47-year-old team leader on shop floor, has to now start from the scratch. “I was among the first to get recruited at the plant. I have not worked anywhere else. This is painful, but a harsh, reality. I am among the few who agreed to the compensation package and start a new innings afresh,” said Mistry, who lives in Halol.
The Halol unit has faced controversies due to worker unrests. In October 2010, workers carried out a four-day strike demanding higher wages, followed by an indefinite strike, in less than six months, supported by Gujarat Kamdar Mandal and Indian National Trade Union, raising health hazard issues. The strike lasted for about six weeks. Again in 2014, contractual workers resorted to a strike for wage and other related issues.
On Friday, after the close of the second shift at 4 pm, security men closed the gates, never to open again, as staff buses were driven out.
GM CEO Mary Barra had on July 2015 announced the closure of the Halol plant, which was started as a joint venture with Hindustan Motors to produce the Opel range of passenger cars; later it started manufacturing Chevrolet from 2003. The Halol facility had an annual production capacity of 110,000 vehicles, while the Talegaon facility’s is 130,000.
Spread across 172 acres, the plant still has a huge inventory of sedans and utility vehicles piled up in its backyard.
“The plant will remain closed. Only the administrative functions will remain open from Monday. There will be no workers entering through these gates from tomorrow,” said a gatekeeper on duty.