After 21 years of setting up its manufacturing base at Halol near Vadodara in Gujarat, General Motors will close operation sometime in April. This was the first car manufacturing plant to be set up in Gujarat. The decision to close the plant was taken much earlier in July 2015 and it was decided that the plant would be closed by mid-2016. However, to ensure seamless transition of employees, suppliers and other stakeholders, it was decided to extend the closure deadline to March 2017. It is expected that the company will be able to finally close the plant by April, even though the exact date has not yet been finalized.
One of the major problems related to the closure is about the 650-odd employees, most of whom have refused to accept the Voluntary Separation Scheme (VSS), which was offered in December. As per the VSS, the workers were to get 100 days of wages as compensation. Top officials from General Motors are currently discussing the problems of workers with the government. “GM has decided to close their plant as per their business decision. The state government has allowed the company to wind up its operation on the assurance that they would resolve all issues related to workers,” said JN Singh, chief secretary, Gujarat government.