Hyundai workers end strike after TN govt's intervention

The sit-in strike called by the employees of Hyundai Motor India (HMIL) at Sriperumbudur factory, near Chennai, was called off today after the Tamil Nadu government's intervention. The strike was called by cross section of workers on Thursday night, following company's management decision to enter into a wage settlement agreement with the Hyundai Workers Committee, which represents section of workers in factory.

The state labour minister and Hyundai officials have confirmed that strike was called off. A Hyundai spokesperson added, "The settlement was mutually acceptable to both the parties and we thank the state government for its efforts."

Under the agreeement the company has agreed that it will reinstate 20 out of the 81 employees who had been sacked earlier on a case by case basis after a review by the Labour commisioner. It has also agreed to bring back 9 employees who were transferred by the management back to Chennai but they will not work in the factory and be posted in showrooms among others. The mangement, however, made it clear that it would not recognise the union and will work through the workers committee.

A Sounderrajan, honorary president, Hyundai Motor Employees Union (HMEU), which claims it has majority of the employees supporting the union, told Business Standard that at today's meeting, which was chaired by the state Labour Minister T M Anbarasan, it was agreed that the management will enter into wage settle agreement with all the employees individually. It may be recalled last Thursday the management had said that it has entered into agreement with the Workers Committee, following which around 900 workers, representing HMEU went on strike. This had resulted company to report 27 per cent drop in the production.

In an official communication, on Thursday, HMIL said that the wage settlement agreement will come into effect from April 1, 2009 to March 31, 2012. As part of the agreement, the company has given a 21-24 per cent increase in the salary, over a period of three years. The agreement was signed with Hyundai Workers Committee.

“We are happy with the wage increase, our only issue is, we do not want to sign under Workers Committee banner,” said Sounderrajan.

The company also agreed, at today's meeting, that it will forward the files pertaining to the suspended employees to the Labour Commissioner, who in turn will conduct an inquiry and will decide which are the employees can be instated to the work. The company had stated that “action was taken under disciplinary measures for involving in violence inside the company”.

Both the decisions were taken up in the meeting which was chaired by the minister and other participants include Labour Commissioner and Secretary, three representatives from top Hyundai management. Today's meeting went on for little over 4 hours, while other meetings on Saturday and Monday went on for 8.30 hours and 5 hours, respectively.