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Maruti Suzuki wage settlement causes unrest among workers

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Following 6 months of negotiation, Maruti Suzuki India Limited has reached a wage settlement along with 3 labor unions.

The new Maruti Suzuki wage settlement of about 38% is with effect from April 1, 2015 and will be valid till March 31, 2018. It allows employees an average salary increase of INR 16,800 spread over 3 year period and is in agreement with workers at both the company plants in Manesar and Gurgaon.

Monthly cost to company in 2014-15 for each worker will be over INR 50,000. Maruti workers will receive 50% of increased amount in the first year and 25% each in balance two years which would equate to a monthly salary increase of INR 8,430 per month in the first year and INR 4,200 per month in balance two years.

Maruti Suzuki wage settlement causes unrest among workers

File Photo. Image – Facebook Page: Maruti Suzuki Workers Union

However, on Saturday, regular and casual workers clashed in protest over the wage hike at the company’s Manesar plant. Two former employees who were earlier sacked for violence were arrested, while over 500 persons have been booked. Some 1,000 odd casual workers state that the union leaders arrived at this settlement with the management of the company without their consent while ignoring their interests totally. Their salaries had not increased on the same lines as permanent employees even though they were working in similar manner.

The union and management argues that these contract workers are taken from Industrial Training Institutes on a 7 month contract basis and are hence not covered by Maruti Suzuki wage settlement on the same lines as regular employees. These contract workers get around INR 15,000 per month and were also different from apprentices who were hired for a period of 1 year.

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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