Long Term Settlement - Between Renault Nissan and workers at Chennai plant - 57% increase in wages

Renault Nissan Automotive India Private Ltd on Wednesday said it has concluded three year wage agreement with its workers.
In a statement issued here, the company - a joint venture between Renault of France and Nissan Motor of Japan - said it has signed formally a three year Long Term of Settlement agreement with its employee representative union, the Renault Nissan India Thozhilalar Sangam (RNITS)

In September 2015 , India's largest carmaker, Maruti raised wages by Rs 16,800 per month while Ford announced a Rs 15,700 hike per month. In February 2016, Hyundai completed its negotiations with its union, giving hikes ranging from Rs 7,000 - Rs 19,500 depending on the cader.

Employees at the Renault Nissan alliance plant in Oragadam will get highest pay increase the auto industry has ever seen after the employees union signed a 3 year landmark agreement with the management.

The agreement will be effective from April 1, 2016 until March 31, 2019. It entails a host of benefits for the employees of the Renault-Nissan alliance.

According to the agreement, all 3,750 employees will get a flat increase of Rs 19,100 per month at the end of the third year. The employees are currently earning an average of Rs 33,000 per month, thus bagging a 57% hike.

Besides the rise, the employees will be covered under group term insurance worth 2 times of cost-to-company or Rs 15 lakh, whichever is higher. They will also be eligible for medical insurance up to Rs 2 lakh, parents and dependents included.

Apart from the monetary benefits, the management has agreed to facilitate creation of an employee township near the factory. A supermarket will be set up within the factory.

Beginning of this year the factory reached the production milestone of one million cars and recently, started third shift operations in response to increasing demand for its products.

Shared by Sanjaya Kumar, Thejo Engineering Limited, Sr. Manager - HR