No salary hike for Honda Motorcycle workers at Manesar plant due to slowdown: Report
The next wage revision for workers at the HMSI plant was due to take place in August 2018
December 26, 2019 / 02:53 PM IST
Honda Motorcycle & Scooter India (HMSI) has decided against revising wages for 1,900 workers its Manesar plant, situated in Gurugram, due to a slowdown in sales and lower revenues, The Indian Express reported
Moneycontrol could not independently verify the story.
The next wage revision was due to take place in August 2018, but the management deferred it due to declining two-wheeler sales and increased marketing expenses, the report said.
“So far since August 2018, the discussions on salary hike were on. However, the company has now indicated that it won’t happen until the second half of next year when the demand is expected to improve,” a union member told the paper.
The previous revision was of Rs 23,300 in August 2015. The next revision would have been Rs 25,000 over the next three years, the report said.
The permanent workers union has so far not decided against a strike or any other agitation path.
A spokesperson for HMSI has told The Indian Express that, while the Manesar plant has the highest monthly cost-to-company (CTC) in the industrial belt, manpower efficiency and productivity in the plant were the lowest among all the company’s plants.
“Manesar plant management started the wages discussion in 2018. Despite overall economic slowdown and production realignment, plant management offered a significant hike with expectation of increased manpower efficiency and discipline. Post this, an average worker’s CTC would cross Rs 1 lakh per month. But unfortunately, some workers are dragging the wage settlement discussion to further their personal agendas, and are instigating labour unrest in the region,” the spokesperson said.