Temporary workers protest at Maruti's Manesar unit

Management assures a revision

Temporary workers at Maruti's Manesar unit protest after wage hike to permanent workers
BS Reporter New Delhi
Last Updated : Sep 26 2015 | 11:13 PM IST
Two days after Maruti Suzuki raised the wages of its 13,000 permanent factory workers by Rs 16,800 a month, a few hundred unhappy temporary staff on Saturday protested outside the company’s Manesar facility, seeking a salary increase. Police intervened to bring the situation. A few workers were arrested and, subsequently, released.

Work at the plant, however, wasn’t affected. It is learnt the company’s management has assured the agitating workers a wage revision for them will be discussed and settled soon.

In July 2012, the Manesar plant had witnessed the worst instance of labour violence in the company’s history, which left a senior human resource executive dead and scores of officers injured.

Kuldeep Janghu, general secretary of the Maruti Udyog Kamgar Union, said the Manesar plant had 800-900 temporary workers. “They are employed for about seven months a year. Of them, 200-300 gathered to protest on Saturday morning. Work is going on at the normal pace,” he said.

These temporary workers draw a gross salary of Rs 15,000 a month, against Rs 38,000-40,000 for a permanent worker (after the latest wage rise). Unlike permanent workers, the wages of temporary workers aren’t increased for a three-year period. For temporary workers, the last wage increase was in early 2014.

Maruti is estimated to employ 2,700 temporary workers at its two manufacturing plants at Manesar and Gurgaon. Contractual workers account for a significant part of the auto and auto component sectors, catering to cyclical and seasonal demand.

Recently, passenger vehicle maker Nisaan cut a few hundred temporary jobs at its Chennai plant, saying they would be employed again when demand rose.

On Thursday evening, the management of Maruti Suzuki, India’s largest carmaker, entered into a wage revision agreement with workers’ unions at its three facilities at Haryana.

According to the agreement, workers will get a rise of Rs 8,430 a month for this financial year, with retrospective effect from April.

For the second and third years, the increase will be of Rs 4,200 each. The combined rise of Rs 16,800 a month, spread over three years, is seven per cent lower than the salary rise of Rs 18,000 given by the company for the three years ended March this year.

DEMAND FOR HIKE
  • Maruti has assured the agitating workers a wage revision
     
  • Temporary workers draw a gross salary of Rs 15,000 a month, against Rs 38,000-40,000 for a permanent worker (after the latest wage rise).
     
  • Maruti employs 2,700 temporary workers at its two plants at Manesar and Gurgaon

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Sep 26 2015 | 10:39 PM IST

Next Story