Renault Nissan Automotive India has informed its employees’ union in its Chennai facility that it would be able to pay 8.33 per cent statutory bonus for the year 2018-19, as against the demand of 20 per cent, considering the current crisis in the industry. The union is expecting to negotiate further to arrive at a final bonus amount, said sources.
The union has sought 20 per cent bonus without ceiling limit and Rs 25,000 ex gratia for FY18-19. Last year, the bonus was 20 per cent and Rs 10,000 ex gratia.
“If the bonus and ex gratia are at the same level as last year, we might get Rs 39,000 per employee. However, the company has said that it will only give 8.33 per cent and this means only Rs 12,400 per employee, which is not acceptable,” said a leader from Renault Nissan India.
Keeping employee welfare in mind and as a goodwill gesture, Renault Nissan Automotive India has decided to give bonus this festive season. This payout is being made despite challenging conditions in the automotive sector and low capacity utilisation because of tough economic situation overall. The company believes in harmonious employee-employer relationship at work place and appreciates the cooperative mindset of its employees, said a Nissan spokesperson.
In a letter to the union, the company said the Indian auto sector is in dire straits and is facing a crisis not seen in the past two decades. The company has also been hit by the crisis and the management is taking several steps to reduce to cost to company. It also said the plant was operating at 40 per cent capacity and also for this accounting year, there is no surplus that could be available for disbursement of bonus.