Yamaha India signs three-year wage pact with workers’ union

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Published: September 13, 2019 1:26:28 AM

The Japanese two-wheeler major witnessed labour unrest at its Chennai factory (Oragadam) for a few days during September and October 2018 owing to sacking of a few workers as well as prohibiting some from forming a labour union.

Yamaha India, India Yamaha Motor, workers' union, Chennai factory, industry newsThe settlement assumes significance at a time when the industry is under demand pressure.

India Yamaha Motor (IYM) on Thursday said it has signed a three-year wage settlement deal with workers’ union at its Chennai factory, effective April 1, 2019, till March 31, 2022. The settlement assumes significance at a time when the industry is under demand pressure.

The Japanese two-wheeler major witnessed labour unrest at its Chennai factory (Oragadam) for a few days during September and October 2018 owing to sacking of a few workers as well as prohibiting some from forming a labour union.

Though the company has not disclosed the details of the three-year wage settlement yet, sources in the union said a worker will be getting an average hike of Rs 14,000-Rs 20,000 a month over a period of three years depending upon the category and experience. A union official said: “Given the current turmoil in the automobile industry, we felt happy to have signed the deal. Nearly 800 workers will benefit through this wage agreement.

“We expect the arrears to be paid immediately. Production is going normally.” As per Siam data, the company reported a 14% drop in its sale in the April-August 2019 period to 395,417 units. While exports grew 18% to 128,484 units, the domestic sales declined sharply by 21% to 273,230 units.

In a statement, the company said, after the massive labour unrest in the Oragadam industrial area last year, the IYM management took several steps to establish better communication with the employees to understand their concerns. The workers also participated in the discussions in a planned way without affecting the company’s production targets. The three-year wage settlement will be implemented with retrospective effect from April 1, 2019, and remain effective until March 31, 2022. The settlement will be applicable to all the permanent confirmed workers in Yamaha’s Chennai factory.

As per the agreement, the employees would also be eligible to get an additional increase in their CTCs depending on their productivity, level of the skill attained and experience over the three year period. “We are thankful to the state government, the labour department and all our employees for extending their full support and cooperation in concluding the settlement agreement successfully. It is a significant achievement and a major boost to the confidence of our employees at the shop floors,” said Motofumi Shitara, chairman of Yamaha Motor India Group.

Representing the company’s own employees union, U Velmurugan said, “It is a golden moment for all of us. We trust the Yamaha management and their concern for the welfare of the employees. We will extend our full support in achieving the company’s target and future growth plans.”

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