Chennai: Renault Nissan Automotive India Pvt. Ltd has signed a three-year agreement with its employees’ union, Renault Nissan India Thozhilalar Sangam, in Chennai on Wednesday.

The agreement will be effective for three years until 31 March 2019, a statement from the automobile manufacturer said. According to the agreement, technicians at the facility in Chennai will receive a “salary increase of 18,000 progressively over the next three years."

“The wage agreement with the employee union goes a long way in building a sustainable and performing organization. We have carefully ensured that the employees and families receive best benefits and schemes," said Colin MacDonald, chief executive and managing director of Renault Nissan Automotive India.

This is the first wage settlement by Renault Nissan alliance since the Chennai operations began in 2010 and after setting up their registered employee union in December 2015.

The Chennai manufacturing unit of the Renault and Nissan alliance started operation in March 2010 and the alliance has so far invested 6,100 crore. The facility caters to both domestic and international markets and has developed into India’s second largest car exporter with more than 600,000 units shipped to 106 countries since 2010, according to the company.

Renault Kwid, which was developed in the company’s Chennai R&D centre, has localization levels of over 98%.

The Chennai facility makes 1,000 cars a day in two shifts. A third shift is expected to increase the per day output to 1,600 units. Currently, 80% of the production capacity at the Oragadam unit is used for Renault products, the rest is used by Nissan.

The Renault-Nissan alliance has introduced 32 new Renault, Nissan and Datsun models and derivatives to its production line, for the domestic market as well as export.

The country’s largest car maker, Maruti Suzuki India Ltd, reached a wage settlement with workers of its Gurgaon and Manesar facilities in September last year, under which employees will get an average salary hike of around 16,800 per month spread over three years.

Earlier this year in February, Hyundai Motor India Ltd (HMIL) in Chennai finalised a wage agreement with the United Union of Hyundai Employees and the technicians would receive an average salary increase of 19,000 per month, spread over three years.