South Korean car major Hyundai has signed a long-term wage pact with union of the Chennai factory workers, which will see a monthly salary hike of over Rs 28,000, among other perks. In a statement, Hyundai Motor India (HMIL) said its recognised union — United Union of Hyundai Employees (UUHE) — have cordially signed the long-term wage pact with mutual-trust being the key pillar of this agreement.
The long-term wage settlement will be retrospective starting from April 1, 2021 and will remain effective till March 31, 2024. The revised, all-inclusive package will see a salary increase of Rs 28,200 per month (in the ratio of 55 per cent, 25 per cent and 20 per cent for a period of three years), among other benefits.
Sources in the company told FE that around 2,239 technicians working at Hyundai’s Chennai factory will benefit from this wage settlement. Hyundai has its only Indian factory located in Chennai and has two plants inside the premise and has an installed production capacity of 7.5 lakh units per annum.
The factory currently operates in three shifts, Monday to Saturday for six days and Sunday is kept for maintenance purposes. HMIL has around 5, 200 employees across the country, and the non-technicians have an annual appraisal cycle for salary increase. For technicians, the normal wage settlement cycle is three years and the last deal was done in 2019.
HMIL had registered a cumulative sale of 6,35, 413 units in CY 2021, achieving a growth of 21.6 per cent over CY 2020. The company had also registered a strong export performance of 1, 30, 380 units in CY 2021 with a growth of 31.8 per cent YoY. Hyundai in India currently has 10 car models across segments Grand i10 Nios, i20, i20 N Line, Aura, Venue, Verna, Creta, Alcazar, Tucson, and Kona electric. HMIL forms a critical part of Hyundai Motor Corporation’s global export hub. It currently exports to around 80 countries across Africa, West Asia, Latin America and the Asia Pacific. To support its growth and expansion plans, HMIL currently has 562 dealers and more than 1425 service points across India. Hyundai has a modern multi-million-dollar R&D facility in Hyderabad.