Following the footsteps of Maruti Suzuki, Hyundai Motor India on Thursday also announced an attractive wage hike and a host of other benefits for its workers.
Hyundai, the country’s number two car manufacturer, finalized the wage settlement agreement on Thursday by agreeing to hike wages by a significant 45 per cent.
Under the terms of the new wage agreement, the South Korean car manufacturer will give its workers average wage hikes of Rs 14,283 a month, per worker including variable components. This will be split for three years in the proportion of 40 per cent in the first year and 30 per cent for the subsequent two years.
Along with the attractive wage hike, Hyundai workers will also enjoy increased benefits such as medical and group insurance coverage. Hyundai announced that it had increased the in-patient coverage range from Rs one lakh to Rs 2.5 lakh, and serious illness cover from Rs three lakh to Rs six lakh. The out-patient coverage range has been hiked by Rs 2,000.
Hyundai signed the wage agreement after a similar move by Maruti Suzuki, the country’s biggest car manufacturer. Around a month back, Maruti hiked its workers’ wages by an average of Rs 14,300-14,800. However, it is worth mentioning here that Maruti Suzuki doesn’t provide transport facility to its workers, while Hyundai does. Excluding conveyance, Maruti Suzuki’s average pay increase is therefore roughly Rs 1,000 less than Hyundai’s.
The three-year wage agreement between Hyundai and United Union of Hyundai Employees will take effect from 1st of April this year and remain in effect until 31st of March, 2015.