CHENNAI: Employees at the Renault Nissan alliance plant in Oragaddam will get highest pay increase the auto industry has ever seen after the employees union signed a 3 year agreement with the management. According to the agreement, all 3,750 employees will get a flat increase of Rs 19,100 per month at the end of the third year. The employees are currently earning an average of Rs 33,000 per month, thus bagging a 57% hike.
The agreement, effective from 1 April 2016 entails a host of benefits for the employees of the Renault-Nissan alliance. Besides the rise, the employees will be covered under group term insurance worth 2 times of cost-to-company or Rs 15 lakh, whichever is higher. They will also be eligible for medical insurance upto Rs 2 lakh, parents and dependants included.
Car market leader Maruti has signed the agreement at Rs 16800 average. Hyundai has agreed a range between Rs11000 to Rs 19500 for its employees. Next door neighbor pays Rs 15700 increased pay to its employees.
Apart from the monetary benefits, the management has agreed to facilitate creation of an employee township near the factory. A supermarket will be set up within the factory.
Hailing this as a landmark agreement, sources said no company has paid this far. In February 2016, Hyundai completed its negotiations with its union, giving hikes ranging from Rs 7,000-Rs 19,500 depending on the cader. In September last year, India;s largest carmaker, Maruti raised wages by Rs 16,800 per month while Ford announced a Rs 15,700 hike per month.
Renault and Nissan have a common car plant in Oragadam, near Chennai that manufactures a range of cars and sports utility vehicles (SUVs). Production is shared by both partners, including exports. At present the factory works in three shifts.