Thursday, 7 February 2013

Hero MotoCorp worker's demand salary of INR 1 Lac per month

The labour issues at Manesar Industrial belt are not new for us now. The area has been struggling with the labour issues since early 2000's. Strike by workers at various automakers and even at some of the OEM's - similar to Maruti Suzuki in year 2011 and again in 2012 is something worries the Industrial belt of Manesar.

After the recent hike in salary by upto 70-80% of Maruti Suzuki Manesar workers, the labour union at Hero MotoCorp has been demanding a salary hike of even more than this at its appraisal sessions. The worker union has been protesting since last few days by sometimes boycotting the regular snacks and is trying to put pressure on the management.

The workers negotiating with the management have now demanded a salary of INR 1 Lac per month apart from subsidized housing and interest-free loans upto INR 10 Lac. The company management, however, is in no mood to relent, fearing any "radical" change in increment levels will not only make the business of Hero MotoCorp unsustainable, but also that of its suppliers, dealers as well as other units in the Gurgaon-Dharuhera industrial belt in Haryana. An experienced shop floor worker at Hero MotoCorp currently has a CTC (cost-to-company) between Rs 47,000 and Rs 50,000. The labour union, now in process of thrashing out a new three-year wage agreement with the company management, has sought an increment of around Rs 45,000

Industry analysts said the Hero management is worried that if it gives a higher wage increment to the Gurgaon workers, then there may be demands to re-visit the 2011 wage pact with Dharuhera workers that originally comes up for renewal in 2014. "It may lead to further labour unrest for the company." Another official working in the region said the workers are getting over-ambitious in their demands after hearing the plans of the company management for new investments, including their plans to expand globally.


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