There were three wage settlements in Q4, and all were of a regular nature. All wage settlements are for a definite period and are taken up for fresh settlement after such periods. We have 13 manufacturing facilities and the agreements are always separate for individual centres at different points of time, said VS Parthasarathy, group CIO & EVP group M&A, finance & accounts, M&M, in an emailed response.
M&M gave details on neither the quantum of the hike, nor the facilities where the wage amendments happened during the quarter. However, in FY14 it successfully concluded the long-pending three-and-a-half-year wage settlement with workers at Chakan, Nashik, Haridwar and Igatpuri facilities. The settlements included a R9,000/month hike per worker over three years. In March 2014, a section of workers at the Chakan facility had demanded renegotiation of the wage amendment.
On a standalone basis, the company's employee cost benefit in Q4FY14 saw a rise of 35% to R615 crore compared to a year ago. The increase, excluding Mahindra Trucks and Buses, full year impact in Q4, is approximately 21%. The increase on account of labour settlements is even less, said Parthasarathy.
The wage settlements are part of labour engagement and are settled for specific periods and taken up at expiry. Mahindras have a cordial relationship with employees and FY14 settlements were also carried out in that spirit without any special difficulty, said Parthasarathy.
In FY14, M&M sold 254,344 passenger vehicles, a decline of 18% over the year-ago period. Commercial vehicles volumes were up 7% during the period to 152,398 units.