Auto industry expert Murad Ali Baig said that hopefully the new salary agreement will bring peace at Maruti.
“Well I hope so (that there will be peace in Maruti). Frankly when there has been very high level of anger and frustration for such a long time, peace doesn't always come easily. Maruti certainly has gone out of way to give a very large incentive for the workers to come to terms. I hope it will work,” said Mr Baig.
He said that the Maruti has a very strong management team and they will come out with a good scheme for the workers at Manesar unit as well.
Notably workers at Manesar plant were demanding a monthly wage hike of around 15, 000 rupees. However, the management offered them a a hike of around 10,000 rupees. Negotiations were still on when the violence broke out at the Manesar plant leading to the arrest of union members.
Baig added that the decision by the Maruti management to give such an attractive hike to its workers will create a ripple effect in the entire region and workers in other auto companies may demand similar increments from their respective managements.
“Obviously it is going to create some ripples. There are many automotive factories in the whole region like Honda motor cycles and scooters, Hero motors etc. There are very large number of vendor units also, which supply (auto components) to the auto companies in the region. They are bound to be affected,” added Mr Baig.
Before the current wage hike by the Maruti the average salary of 2,302 permanent workers at the Maruti's Gurgaon plant was in the range of 35,000 to 39, 500 rupees per month. Out of the promised increment of 18,000 rupees, workers can avail of 80% of the increase, or around Rs 14,400, in the first year itself. This will result into an average monthly salary of 53,000 rupees.
Along with hiking salaries the company has increased travel allowances and has doubled the medical cover to 5,500 rupees.