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.
Workers will get an average salary increase of Rs.14,283 over a three-year period, according to the United Union of Hyundai Employees (UUHE). Benefits have also been enhanced.
"This amounts to a 38-40% hike for us. We tried our best to get the best settlement. Majority of our workers are happy with the settlement," said G. Vinayagan, president, UUHE.
According to the three-year agreement, the 2,000 permanent workers will get 40% of the salary increase in the first year and 30% in the next two years.
He said the company has increased the night shift allowance to Rs.65 from Rs.55 and the housing loan interest subsidy to a maximum Rs.650 per month from Rs.354. The medical scheme has also been revised so that workers can claim Rs.2.5 lakh if admitted in a hospital compared with Rs.1 lakh 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.
The company declined to comment on the matter.
UUHE was seeking a 45% increase in the salaries of permanent workers, which would have added Rs.15,000-20,000 to a worker's pay over three years, Mint had reported.
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.
Distributed by MCT Information Services
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