Hindustan Motors terminates 240 managerial staff

Tags: News
India's oldest car maker Hindustan Motors, which declared suspension of work at its Uttarpara plant on May 24, has terminated the services of around 240 managerial staff.

The company, however, retained some staff in disciplines such as finance and HR.

Company sources told PTI that the termination notices on the staff were served yesterday.

The company had given employment to around 2,300 workers.

When contacted a company spokesperson said: "Managerial restructuring has been an on-going process over the last 2-3 years and continues in an effort to optimise work flow whilst retaining staff that remains critical to the continuity of operations."

The plant manufactured the iconic Ambassador cars, whose demand in the market place dwindled owing to the onset of stiff competition from Japanese and Korean players.

Commenting on the termination of the managerial staff, HR professionals were of the opinion that this action on the part of the existing top management would create a psychological impact in the minds of the workers.

"The workers will now have a feeling that since the managerial staff were retrenched, so there are little hopes of reopening," a senior HR professional said.

He further said that "as the workers were not getting their wages, so it will now be easier on the part of the management to come up with a separation scheme, and in all probability, workers will be mentally induced to accept that."

In that case, the liability of the company would get reduced to a large extent with no decrease in assets.

"It will probably be in a better situation to rope in a new investor for revival of the plant," he said.

Meanwhile, the West Bengal labour department has called a tripartite on June 12.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Healthy bottomlines are nothing if not backed by a happy work force

    Trust technology firms to devise solutions for every situation.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Tushar Gandhi

Bapu vs Netaji, a needless row

Once again, a rivalry from the past has been raked ...

Purnendu Ghosh

Eyes are our best social navigators

Eyes have a rich vocabulary. They can not only ...

Bubbles Sabharwal

The bitter cold heart of life

Life has a heart just as we do. Most times ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture