Hero fears row over hikes may hit production
Roudra Bhattacharya: Jan 18 2013, 01:05 IST
wages for its workers has risen ever since Maruti Suzuki in September last year increased wages for its Gurgaon plant employees by 50%, which translated into a monthly hike of Rs 18,000. Then a few weeks ago, Honda Motorcycle and Scooter India also offered a 50% wage hike, translating into a monthly hike of Rs 14,750 to the workers at its Manesar plant. Though both wage agreements are spread over three years, about 60-70% of the pay increase will come in the first year itself. Employees at both companies also avail other benefits including transport, housing assistance and medical allowances for families.
Wages of jobs
* Hero MotoCorp’s wage costs as a percentage of net sales stood at 3.2% in FY12, against Maruti’s 2.3% in the same fiscal
* Hero MotoCorp is the market leader in two-wheelers; unit sales in April-December FY13 were down 2% (4.42 million), FY12 sales were up 15% (6.06 m)
* It has three plants (Dharuhera, Gurgaon and Haridwar) with a combined annual capacity of around 7 million; two more are coming up in Rajasthan and Gujarat, taking capacity to 9-10 million in the next 2-3 years
* Hero bought out Japanese JV partner Honda in 2011 and is now aggressively expanding in global markets with plans for assembly plants in South America and Africa
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