Hero mgmt ups its offer to resolve impasse with workers

In a an attempt to break the impasse over wage settlement terms with workers at the company’s Gurgaon unit, the management of Hero MotoCorp has in the latest round of negotiations offered to increase increments to Rs 8500-9000 spread over a three-year period.

A person in know of the talks said, “Earlier the management was offering Rs 7500 in wage hike at Gurgaon. Now they have said they are willing to increase increments by an added Rs 1000-1500. Talks are progressing positively. We have to wait for the outcome of the meeting with the union on Saturday.

"We are in the process of talks with the members of the union of our Gurgaon plant & the process of conciliation is going on in presence of the labor department. We would not, therefore, like to comment on any unsubstantiated market speculation on this subject”, said a spokesperson at Hero MotoCorp.

The workers at the Gurgaon units are demanding an increased compensation of over Rs 15,000 as productivity has gone higher since 2009. The management meanwhile had previously offered less than half the amount at Rs 7500 in wage hike for permanent workers at the facility.

“Hero was the leading paymaster in the auto industry prior to the wage hikes at Maruti Suzuki, Hyundai and HMSI. So it is difficult for them to give increments similar to what has been offered by other companies. But a hike of Rs 9000-10,000 would bring the salary at par with wages being paid in other companies in the region”, said another person in know of the developments.

Over 11,000 permanent and contract workers across both the Gurgaon and Dharuhera units are sporting black armbands to protest against the mangement’s refusal to give higher wages to permanent workers at Gurgaon.

The workers at Hero MotoCorp have been asking for a similar increment as at Honda Motorcycle and Scooter India’s (HMSI) Manesar unit, where a 50% wage hike of Rs 14,770 in monthly salary was announced recently.

Hero MotoCorp employs around 1200 permanent workers and 4000 contract workers at its Gurgaon facility. The average salary of a permanent worker at Gurgaon currently is around Rs 32,000 which goes up to as much as Rs 38,000 for more experienced employees.