Maruti Suzuki Wage Agreement

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In the Sanand Belt of the State, The factories of Tata Motors and De Ford India, the average starting salary for those who are from the Industrial Training Institutes is 8,000 to 10,000 times per month, while for a permanent employee from 14,000 Rs per month and according to industry estimates, it could reach up to 40,000 Rs per month. The wage increase announced by Maruti follows several rounds of negotiations with employee unions. In September 2012, the company signed the compensation pact with its Gurgaon employees, which gave employees an average pay increase of 18,000 aff. per month over three years. In Gujarat, an emerging automotive hub, where Maruti is building its third factory and where Tata and Ford are represented, wages are increasing this year by 6 to 10 percent. The average salary of the employees of the workshop is estimated between 15,000 and 20,000 aff. per month. In December last year, luxury carmaker BMW announced a pay rise of 18,000 aff. (over three years) for workers at the Chennai plant.

A spokesman for Maruti Suzuki declined to answer questions from the UEV. The collective agreement is reviewed every three years. Wage increases could be a benchmark for most automakers and automotive components, particularly in northern India. Hyundai, Maruti`s closest competitor and india`s second largest car player, employs 2,300 permanent employees at the Chennai plant. In 2012, Hyundai had announced a 38-42 percent pay increase for three years, said G Vinayagam, president, United Union of Hyundai Employees. Business sources said the average increase in workers` wages will be 38% over three years compared to their earnings in 2014-15. In September 2012, the company and its Gurgaon employees signed the compensation pact, which gave workers an average wage increase of $18,000 per month over three years. Earlier, the Manesar company`s factory was hit last July by worker violence, in which an HR manager was killed.

After six months of negotiations, three unions at Maruti Suzuki India Ltd`s factories in Haryana said they had secured a wage agreement with the country`s largest automaker, under which employees get an average pay increase of $16,800 per month over three years. Maruti obtained a wage agreement with the workers of its Gurgaon and Manesar factories, under which the increase in wages given would be spread over three years In the 2012 wage agreement, workers had received an average wage increase of R18,000, spread over three years, while the average increase in 2009 was about Rs 7,000 per month. The country`s largest automaker, Maruti Suzuki India, has begun talks with unions at three factories to reach consensus on a revised wage deal. This is because the last collective agreement signed by the company with the unions in 2012 is renewed after three years. The agreement applies from April 2015 to March 31, 2018. Janghu said management also agreed to pay 2,000 Ds per month as transportation allowance to workers who use their own vehicles for seven years. Business sources said the average increase in workers` wages will be 38 percent over three years compared to their earnings in 2014-15. This development promises not only because the agreement between the unions and management was signed amicably after violent violence three years ago, but also because it would pave the way for peaceful negotiations in the Gurgaon-Manesar belt, where a large number of automotive and automotive component manufacturers are located.

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