NEW DELHI: Although India's auto industry is grappling with slow down but the salary hike trend set by Maruti Suzuki, with the announcement of 50 per cent salary hike of its Gurgaon employees, is expected to be followed by various auto makers in the coming time.
The wage boost initiative recently adopted by Hyundai Motor India (HMI) gave more weightage for this anticipation. Last week, Hyundai Motor increased the wages of its workers at Chennai plant by 45 per cent, applicable for tenure of three years.
The move by prominent car makers like Maruti and Hyundai may gradually set the trend for higher wages to automotive plant workers in the country notwithstanding the worsening situation of the industry.
HMI recently inked a wage settlement agreement with United Union of Hyundai Employees. The pact will be effective from April 1, 2012 and will remain effective until March 31, 2015. Hyundai's wage increase ranges from Rs 11,000 to Rs 13,000, excluding components such as the variable dearness allowances and other welfare benefits.
The South Korean car maker will provide 40 per cent salary hike to the Chennai plant workers in the first year and 30 per cent increase will be rendered in the next couple of years.
Analysts opined that the wage realignment benchmark set by Maruti and expected-to-be followed by other industry peers is due to the prevailing market pressure, pressure from labour unions and ongoing inflationary environment is also responsible for the same to an extent.
Although, the car makers are adopting the wage boosting initiative in a bid to remain competitive and also to bring some changes in the current labour environment of the country, but the move will definitely encourage the morale of the plant workers.