Encouraged by the pay hikes announced by Maruti Suzuki for its Gurgaon plant workers last month, the labour union at Hero MotoCorp?s nearby plant is now believed to be pushing for a similar wage increase.
The final three-year wage settlement is expected to be ratified by both parties around Diwali (November 13), with meetings taking place between the management and Gurgaon plant union almost everyday, industry sources told FE.
With the new wage agreement at the Gurgaon plant coming in effect retrospectively from August 1 this year, the workers are expected to get arrears for about three and a half months. ?There are internal meetings being held in a very peaceful manner. Given the fact that Hero is the industry leader, the workers are hoping that the management would match the trend set by the other major auto players,? another industry source said. The original demand charter had been submitted on July 11.
Around 1,100 permanent workers would benefit from the fresh agreement, while the 4,500 contract workers at Gurgaon may also see some new benefits.
At present, the average monthly salary for Hero?s Gurgaon plant employee is about R32,000, while the maximum is at around R40,000.
?The Gurgaon wage revision is expected to be cleared in the next few months. The Dharuhera plant already saw a wage revision last year, while the third Haridwar plant, which does not have a Union, is yet to enter into any new wage agreement,? a company official said.
On September 25, Maruti Suzuki announced a strong 50%, or a R18,000, wage hike for its Gurgaon plant workers, which would also be offered to the Manesar employees.
Seen as a move to lift worker spirits, this came just a month after Maruti restarted operations at its Manesar plant following labour unrest.
The union at Honda Motorcycle?s plant at nearby Manesar is also in the midst of a wage agreement, under which it has reportedly demanded an up to R15,000 wage hike, free housing and interest-free loans.