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Maruti offers 70% hike to workers over three years
-The Times of India

NEW DELHI: Nearly two months after workers went on the rampage at its Manesar plant, Maruti Suzuki has doled out a bumper increment package in a new wage settlement agreement, offering salary increment of nearly 70%, apart from other benefits like interest-free personal loans. The agreement has been accepted by the company's labour union.

S Y Siddiqui, Maruti's chief operating officer (administration ), said the company has signed the new wage settlement with the workers and this will be applicable for shop-floor workers at the Gurgaon and Manesar manufacturing premises. "The negotiations took us nearly four months and 40 meetings," Siddiqui told TOI here.

As per the settlement, which is happening after three years, the average increment in salary of workers will be about Rs 15,800 and this will be spread over a period of three years. This comprises a Rs 14,800 increment in gross salary , apart from an additional Rs 1,000 in an ad hoc payment of Rs 2,000 that the company gives to workers every month. "While 75% of the gross salary increment will be given in the first year, we will give 12.5% each in the second and third years," Siddiqui said. As many as 2,800 workers in the Gurgaon plant and around 700 in Manesar will benefit from the wage revision.

The gross salary of an entry-level worker at Maruti is Rs 23000 at present, and the cash-in-hand comes out at around Rs 18,000. As per the new wage structure, the average entry-level salary will increase to Rs 37,800 over the next three years. The revision is considered to be very healthy, considering that the company had given an increment of Rs 9,300 in the last such exercise in 2009. "Inflation is a reality we kept in mind while working out the new wages," Siddiqui said.

The other benefits for the workers include a Rs 20,000 interest-free personal loan. This is also being seen very positively by the workers, who will have access to ready cash.

Siddiqui said the company has also widened the health-benefit scheme for the parents of the workers. "Earlier the parents were covered under the medical scheme only when they were staying with the workers. Under the revised policy, they will be covered under the medical policy even if they are staying elsewhere. Parents of many workers live in villages and this will benefit them. However, the annual earnings of the parents should be less than Rs 60,000 to be entitled under this benefit."

Maruti has also decided to reduce the training period for technicians from three to two years, while stipulating specialized training courses for them.

The settlement had been worked out by a committee that had representatives from the Maruti management as well as the workers' union. Perhaps as a pressure tactic, the workers had initially made very tall demands during process, that included a five-fold increase in basic salary , a monthly conveyance allowance of more than Rs 10,000, a laundry allowance of Rs 3,000 and a gift with every new car launch.

Kuldeep Jhangu, general secretary of Maruti Udyog Kamgar Union (MUKU), said the workers have accepted it. "We are happy with the provisions and more so since it happened in a peaceful manner."

He said the company has agreed to bring down the period for promotion of new recruits from six years to three years. "Also, instead of a fixed dearness allowance, we will have an arrangement under which it can be revised periodically . There has also been a minor increment to the conveyance allowance as well," Jhangu said.

WAGE SETTLEMENT

The average increment will be about Rs 15,800, spread over three years .The gross salary of an entry-level worker goes up to Rs 37,800 per month. Other benefits include a Rs 20,000 interest-free personal loan. Training period for technicians reduced from three to two years