Maruti Suzuki hikes Gurgaon plant workers’ salaries by Rs 18,000 pm

Maruti Suzuki India Ltd. | Automobiles - Passenger Cars | Automobiles | BSE: 532500 | NSE: MARUTI

26 Sep 2012 Evaluate

Grappling with near-constant labour woes, Maruti Suzuki India, has now reached a wage settlement agreement with workers at its Gurgaon plant, under which the employees will get an average salary hike of Rs 18,000 per month spread over three years.

Under the three year agreement, which would be implemented with retrospective effect from April this year, the workers will receive 80% of the hiked salary in the first year and the remaining portion in the following two years.

However, actual average hike affected in the salary will be at Rs 14,800 per month as over and above this there will be an increase of Rs 1,000 per month on the ad-hoc allowance, besides the DA will also be made variable by the company to consider any further inflationary pressure in the society.

Also, as per the agreement the workers will get transport allowance of Rs 1,200 per month. Additionally, Maruti Suzuki also has given nod to increase the medical allowance of the workers apart from raising the number of yearly scheduled holidays to 12.

Last wage settlement at the Gurgaon plant was in 2009, when the union had managed to negotiate a 6% hike for its members. The average hike then was around Rs 7,000, spread over three years, with workers allowed to avail only 50% of the hike in the first year. Meanwhile, currently, salaries at the Gurgaon plant range from Rs 35,000 - Rs 39,500 per month.