General Motors has reached a new three-year wage agreement with workers at its Talegaon plant in India that the automaker says will “support further advances in vehicle manufacturing quality, efficiency and an improved work environment”.
Set to go into effect on April 1st, 2017 and to expire on March 31st, 2020, the deal calls for workers getting staggered raises over the length of the agreement. Of particular interest is that the deal marks the first time ever that GM and the union at the Talegaon facility have signed an agreement before the previous labor agreement expired.
“We are pleased that we have reached agreement and provided greater certainty for our manufacturing employees at Talegaon,” said Pritpal S. Kular, Vice President of Human Resources of GM India. “This goes to show the trust and commitment between the parties is high and we work collaboratively to resolve all issues in an amicable manner.
General Motors is currently consolidating vehicle production operations in India at the Talegaon factory. Its second facility in the country — the plant in Halol — is set to be closed by the end of April.
“The agreement is effective from 1 April 2017 and runs until 31 March 2020 and is an important step in our plan to consolidate GM India’s manufacturing at the Talegaon plant in Maharashtra.”
“The signing of the new agreement is a testimony of our commitment towards the workers and their welfare” said Cyril George, HR Director of the Talegaon plant. “We have been able to seal the settlement keeping in mind the competitive wage structure and benefits for the workers at the Talegaon facility.”
“This timely settlement will revise our wages and help drive quality and enhanced productivity which is beneficial for all employees and will help deliver organizational goals”, Tushar Kamthe, General Motors Employee Union President at the Talegaon plant was quoted as saying. “The agreement has set a new paradigm in the Indian automobile industry and this will pave the way for future co-operative growth.”