Bajaj is a debt-free company with strong fundamentals but these measures need to be taken due to the unprecedented circumstances, the HR department notice said.
Workers at Bajaj Auto have agreed to a 10% wage cut for the period between April 15 and till the lockdown is lifted, reports fe Bureau in Pune. Managing director Rajiv Bajaj would not be drawing a salary during this period, workers have been told. The company will pay full salaries and wages for the March 24 to April 14 period. Wages for workers range between Rs 55,000 and Rs 65,000 for experienced workmen and the cut is applicable to all workers and employees across levels and locations.
Bajaj Auto halted production since the lockdown began March 24. The company has indicated to workers the fixed operating costs need to brought down and trimming employee compensation is a step towards this. The cut in compensation will be applicable to the permanent workforce at Chakan which has around 800 workers, Aurangabad where there are around 3,000 workers and Pantnagar plant which has around 1,000 workers. It is not clear whether the around 100 workmen at the Akurdi plant are also included, Vishwakalyan Kamgaar Sanghatana (VKS), union president, Dilip Pawar, said.
Bajaj is a debt-free company with strong fundamentals but these measures need to be taken due to the unprecedented circumstances, the HR department notice said. A three-year wage agreement in 2019 had given workers at Akurdi, a hike of Rs 15,000 hike payable over three years with a hike of Rs 5,000 every year. In Chakan, workers received a one-time hike of Rs 12,500.