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E-mail ID will not be published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

  • For those who are left to survive a war-torn world, let there be peace

    The hunger games have begun, and they have started reaping our children. There is no way around it.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture