New Delhi: After the much publicised Manesar standout costed Maruti Suzuki both in terms of money and life, the company has gone ahead and signed a new 3-year aggrement with the labor union, whereby workers would be getting an average increment of Rs 18,000 per year in salary, and also a host of other benefits such as better medical coverage for themselves and their family.
Speaking on the development, Chief Operating Officer, SY Siddiqui said, "After four months and 40 meetings, we are very happy to finalise the wage hikes for our both Gurgaon and Manesar plants. Gurgaon plant workers have readily agreed to our offer and the new three-yearly agreement will be signed in the next few days in presence of Labour Department officials. However, in absence of any union at Manesar plant, workers there will have to give individual acknowledgment to their superiors."
Breaking up the actual list of benefits, the average salary increase for a junior employee will be Rs 15,000 per month, and more for senior employees. This will include benefits of Rs 14,800 in overall hike apart from Rs 1000 increase in ad-hoc allowance, besides a variable dearness allowance as per the financial situation. For those travelling long distances, there will be a travelling allowance of Rs 1,200 per month. For medical insurance, there will be 90% assistance from Maruti's side for the parents of workers, if the amount is within Rs 1 lakh. However, for amount over that, the assistance will be 80% of total expenses. Also, the policy for metting out this benefit earlier had the provision that parents would have to be resident with the workers, but now a declaration of dependance will be suffice.
This will add directly to the labor cost of the company, with an additional 2.4-2.5% to the overall cost. But considering that Maruti spends just as much each year, they ought to be happy it will help the workers directly.