The company has made a similar offer to the 620-odd permanent workers at its other Manesar facility that was witness to violence by workers last July. The sweetened deal, the best that Maruti has ever offered, is an attempt to soothe nerves and resurrect the firm’s industrial relations track record. Before the violence in July, Manesar witnessed 3 instances of labour unrest last year.
“On an average salaries will go up by Rs. 18,000 per month,” said Kuldeep Janghu, general secretary, Maruti Udyog Kamgar Union. “We have signed the agreement with the management. This is one of the highest ever hike in the past 30 years in Maruti. The periodic medical benefits to all workers have also been doubled.”
The last time when the wage settlement was finalised In 2009, the increase was at a much modest Rs. 9,500-9,700 per month. The quantum rise in salaries notwithstanding, the company said its wage bill remains under control.
“Our wage bill is hovering at 2.5-2.6% of our total revenues. Though it will go up it will still be in control,” said S Y Siddiqui, chief operating officer, administration and HR, Maruti Suzuki India Ltd.