Talegaon plant workers likely to drop legal options, Hyundai close to GM plant acquisition

The Workers union has softened its stand to compulsorily hire the 900 workers with the Maharashtra government stepping in to offer compensation of Rs 25 lakh to each impacted worker.

By Amit Vijay M  calendar 15 Jan 2024 Views icon14159 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Talegaon plant workers likely to drop legal options, Hyundai close to GM plant acquisition

Amid the Bombay High Court’s decision to dismiss writ petitions filed by the General Motors' Employees Union against the closure application of the Talegaon plant, Deputy CM of Maharashtra Devendra Fadnavis last week shared on social media platform X that Hyundai Motor India plans to invest Rs 7000 crore in Talegaon, Pune – indicating that legal battle may not hold back this deal. 

Autocar Professional learns that the workers are not likely to challenge the same in the Supreme Court, instead would be looking to engage with the company yet again for the resolution. 

The Workers union has softened its stand to compulsorily hire the 900 workers with the Maharashtra government stepping in to offer compensation of Rs 25 lakh to each impacted worker. "The workers are more likely to reach a mutual settlement," sources indicated. 

When contacted, the General Motors Employees Union's president, Sandeep Bhegade told Autocar Professional that the union is currently in talks with the management to reach a swift resolution to the issue. “We are hopeful that we will discuss the issue with each other and resolve it," he said.

Workers are hoping that Hyundai will absorb them, as the state government in their previous meeting had stated that it would be offering extra incentives to Hyundai, in case the South Korean car maker decides to absorb the Talegaon plant workers.

The General Motors workers union had filed two writ petitions in the Bombay High Court. First, to challenge the Pune Industrial Court's decision to close GM's Talegaon facility and secondly, the Maharashtra government's decision to grant Hyundai Motors the NOC to go ahead with the transfer.

Maharashtra Deputy Chief Minister Ajit Pawar had announced in the winter session of the legislative assembly in December that each affected worker of the General Motors Employees' Union will be paid Rs 25 lakh in cash.

"With the unfortunate closure of General Motors Company in the Talegaon area, and in recognition of the impact on laborers from western Maharashtra, the government intends to compensate each worker with Rs 25 lakh in cash. Hyundai, which aims to take over the site, has also promised to hire its former GM employees based on specific criteria. "Our government is committed to ensuring justice for the workers affected by this transition," Dy Chief Minister Ajit Pawar said during the Maharashtra State Assembly's Nagpur session.

Fadnavis in his post on X said, Hyundai Motor apprised him of Rs 7000 crore investment in Talegaon. “They also sought advice and assistance on various aspects and I assured them on behalf of our government of full support to ensure smooth implementation.”

This will be Hyundai Motor’s first investment beyond Tamil Nadu its current home base.

“They are visiting Davos later next week to sign an MoU with the Government of Maharashtra. We are absolutely delighted and welcome Hyundai in creating a world class modern automobile manufacturing facility in Maharashtra,” added Fadnavis.

Hyundai senior officials including MD Kim Unsoo along with Executive Director J.W Ryu met Fadnavis last week.

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