The three-year wage settlement will be implemented with retrospective effect from April 1, 2018 and will remain effective till March 2021.
After months of deliberations, Hyundai Motor India (HMIL) has finally reached a fresh three-year wage agreement with the recognised union, United Union of Hyundai Employees (UUHE). As per the agreement, technicians will receive an average salary increase of Rs 25,200 per month to be paid over three years. Over 2,200 workers are likely to benefit from the agreement.
When contacted, Hyundai Motor India confirmed the development and said it has successfully completed its long-term wage settlement with the UUHE. The three-year wage settlement will be implemented with retrospective effect from April 1, 2018 and will remain effective till March 2021.
As per the agreement, technicians will receive an average salary increase of Rs 25,200 per month spread over three years. Technicians will receive 55% of the increased salary in the first year, 25% in the second year and 20% in the third. This would mean a monthly salary raise of Rs 13,860 will be given in the first year, Rs 6,300 in the second year and Rs 5,040 a month in the third year, the company said
When contacted, UUHE president Ramanathan said that, “We have concluded our wage agreement with the management today and we got a hike of 13% over our previous wages, which was done in February 2016 for the period of April 1, 2015 to March 31, 2018. For different grades, the hike is in the range between Rs 20,200 and Rs 31,600 per month. We are happy to have done the agreement successfully.”
To a specific question, he said, the management will also offer 50% interest subsidy on housing loans of up to Rs 15 lakh for first 10 years, apart from interest-free personal loan of up to Rs 1 lakh among other benefits. Arrears arising out of wage hike for the last one year will be paid immediately.
It may be recalled that the management had effected a three-year wage revision in February 2016 for the period of April 1, 2015 to March 31, 2018. As per the agreement, technicians had got an average salary increase of Rs 19,000 per month spread over three years. In the first year, workers got 50% increased salary and 25% each in the remaining two years.
Despite a few rounds of negotiations, the management and the union could not arrive at the agreement early due to difference of opinions in the wage revision. The union was opposing that the hike to a particular grade was not sufficient and they should be paid more.
Following this, the management sent a notice to the union, asked it to sign the agreement before March 20. However, both the sides continued talks concluded the agreement on Monday.