Hyundai, workers reach agreement on salary hike

Workers to get an average salary increase of Rs.14,283 over a three-year period; benefits also enhanced
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First Published: Thu, Oct 18 2012. 04 16 PM IST
A file photo of a Hyundai showroom in New Delhi. Photo: Ramesh Pathania/Mint
A file photo of a Hyundai showroom in New Delhi. Photo: Ramesh Pathania/Mint
Updated: Fri, Oct 19 2012. 12 15 AM IST
Chennai: Hyundai Motor India Ltd, the country’s second largest car maker, reached an agreement with workers on pay raises following a similar increase by Maruti Suzuki India Ltd.
The salary increase ranges from Rs.11,000-Rs.13,000, excluding the components such as the variable dearness allowances and other welfare benefits, the company said in a statement.
Workers will get an average salary increase (including variable pay) of Rs.14,283 over three years, according to the United Union of Hyundai Employees (UUHE).
The benefits have also been enhanced.
The salary is a 45% hike over the settlement made in 2009, when the average salary increase was Rs.9,820.
“We tried our best to get the best settlement. A majority of our workers are happy with the settlement,” said G. Vinayagan, president, UUHE.
According to the three-year agreement, which will become effective from 1 April 2012, the 2,000 permanent workers at the company will get 40% of the salary increase in the first year and 30% in the next two years, the company said in the statement.
The company has also increased the night shift allowance to Rs.65 from Rs.55 per night and the housing loan interest subsidy to a maximum of Rs.650 per month from the current Rs.354.
The medical scheme has also been revised so that the employees can claim Rs.2.5 lakh if admitted in a hospital compared with the Rs.1 lakh amount earlier.
Critical illness cover has been doubled to Rs.6 lakh from Rs.3 lakh.
Outpatient claims have been increased by Rs.2,000 to Rs.8,000 a year.
In September, India’s largest car maker Maruti Suzuki announced an average wage increase of Rs.14,800 a month that will be spread over three years, in addition to benefits such as interest-free personal loans up to Rs.20,000 and low-cost housing options.
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First Published: Thu, Oct 18 2012. 04 16 PM IST
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