The management of two-wheeler major Hero MotoCorp and its Gurgaon plant workers will meet again for fresh rounds of talks from Friday in the presence of Haryana Deputy Labour Commissioner to break a five-month long deadlock over wage settlement.
The initial wage negotiations, which started during late-August 2012, remained inconclusive and fell apart on January 21. The matter was referred to the Deputy Labour Commissioner (DLC) of the region for further deliberations.
"After the initial talks broke on Monday, the two parties will again sit for discussions on January 25. This time it will be in the presence of a higher authority, which is DLC," a source close to the development said.
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Workers, who are demanding a monthly wage hike of up to Rs 18,000 over a three-year period, have decided to wait for the outcome of the discussions under the DLC and will decide on its future course of action accordingly.
When contacted, a Hero MotoCorp spokesperson said: "We will continue to engage with the workers towards achieving the objective of reaching at an amicable solution, without allowing ourselves to be coerced into decisions governed by pressure tactics."
The company will take "prudent and well-deliberated decision" in the interest of all workers as well as for the industrial environment of the region, he added.
"Hero MotoCorp has always given top priority to the overall welfare and well-being of all our workers. In keeping with this spirit, our welfare measures and benefits have been the benchmark in the industry. And we will strive to reach at a reasonable, sustainable and sensible settlement," the official said.
However, Hero MotoCorp Workers Union (HMCWU), which is representing the permanent workforce of nearly 1,200 people, claims that the management is offering workers a hike of slightly more than Rs 6,500 per month spread over three years, which was the hike for the company's Dharuhera plant's workers during the three-year agreement signed in 2011.
"We are asking for a hike of about Rs 15,000-18,000 per month spread over a period of three years as cost of living in NCR is very high," HMCWU President Kawalpreet Singh had said.
The workers union had submitted its demand in August last year and its representatives have been holding negotiations with the management since then.
The permanent workers are at present observing silent protest by wearing black badges and are not taking tea and snacks provided by the company to press for their demand. They have, however, ruled out going for any strike or slowdown in production immediately.
Worker-colleagues at the company's Dharuhera plant are also wearing black badges during work in solidarity of Gurgaon unit's workers.
Hero Motocorp stock price
On March 11, 2014, at 13:49 hrs Hero Motocorp was quoting at Rs 2013.35, down Rs 3.3, or 0.16 percent. The 52-week high of the share was Rs 2214.70 and the 52-week low was Rs 1434.05.
The company's trailing 12-month (TTM) EPS was at Rs 106.61 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 18.89. The latest book value of the company is Rs 250.70 per share. At current value, the price-to-book value of the company is 8.03.