General Motors (GM) India has started the formal process of closure of its Halol plant in Gujarat, according to a report by the Times of India. The US automaker has approached the labour commissioner seeking permission to shut down the unit. An unnamed official from the Labour Commissionerate of Gujarat is quoted in the report as saying, "The company submitted its application for closure of its Halol plant on 4 September. The copy of the application has been given to the workers of the Halol facility." The application has been filed under Chapter 5B of the Industrial Dispute Act, which requires government approval before industrial units with more than 100 workers can be closed down. Accordingly, a hearing on the matter is likely to take place in the next 10 days. The labour commissioner's office will aim to hear the perspectives of the workers and the company.
Significance: In July, GM announced a USD1 billion investment plan that involved closing one of its two plants in India in order to consolidate production. The move is aimed at boosting capacity utilisation at the Talegaon manufacturing plant in Maharashtra. The Halol plant, scheduled to be shuttered by the second half of 2016, produces the Tavera and Enjoy multi-purpose vehicles and employs 1,100 people. The move to shutter the plant is likely to face resistance from workers. GM claims to have discussed the matter with affected workers but reports have suggested that workers' unions plan to take the matter to court.
