Maruti Gives Its Workers A Smoother Drive, Ups Wages

In one of its highest-ever wage revisions, Maruti Udyog Ltd has announced a 40-50 per cent increase in the wages of about 3,700 non-supervisory employees.

The wage revision, effective from April 1, 1996, implies an additional outflow of about Rs 20 crore for MUL.

As a result of the revision, MUL employees are expected to gain Rs 2,600-3,500 a month, with employees with 10 years service now receiving a salary of around Rs 14,000 a month.

The wage revision for MULs other 800 employees, who fall into the supervisory category, is expected to be announced by next month.

According to MUL employees union sources, the wage revision is one of the highest in the companys history.

 

In 1988, the employees wages were revised by about 38 per cent, while in 1992 there was a wage revision of about 30 per cent. In 1996, the wage revision on an average was pegged at about 40 per cent.

Maruti Udyog Ltd, which made a profit of about Rs 600 crore in the last financial year, expects the figure to go up to Rs 900 crore.

This is despite the stiff competition which it faces from new entrants like Telco - which plans to launch its small car by the year-end and Hyundai in the small passenger car segment, hitherto a monopoly of the joint sector giant.