Maruti Suzuki plans wage hike at Manesar plant

Maruti Suzuki Ltd, India's biggest carmaker, plans to increase the wages of all workers at the facility from April, in order to improve labour-management relations ahead of the launch of the Ertiga multipurpose vehicle (MPV).

Maruti Suzuki, which learnt the lessons the hard way, after a series of damaging strikes left the company's car market share plummeting. The carmaker hopes to improve employee sentiment as it takes on rival Toyota Kirkloskar Motors' Innova with the launch of Ertiga.

The company is also expected to accord formal recognition to a new union, Maruti Suzuki Workers' Union, at its second facility at Manesar, by end of this month.

According to S Y Siddiqui, managing executive officer for administration and HR at Maruti, the wage settlement process is expected to start by March, with the pay revision coming into force by April-May.

''We have set up a committee to negotiate with the union and the management, and will try to find an amicable settlement,'' he added.

Siddiqui said the process of verification of employees for registration of the new union is on and Maruti has been coordinating with the Haryana government's labour department for the purpose.