Bajaj Auto workers get Rs10,000 per month pay hike

Bajaj Auto Ltd (BAL) has reached a settlement with the workers union at its Chakan plant near Pune, under which the workers will get pay hikes of up to Rs10,000 and the union and the management will withdraw all cases pertaining to the plant within a fortnight.

As per the wage pact, all permanent employees of BAL who have been with the company for more than five years would get a hike of Rs10,000 per month while those with three years or more tenure would get Rs9,500 per month.

The wage pact, signed on 14 August, is effective for three years beginning 1 April 2013, according to representatives of Vishwakalyan Kamgar Sanghatana (VKS), the recognized union at BAL.

The union has abandoned its earlier demand of 500 shares for every employee and the other demand for erection of a statue of the founder.

The management, however, stuck to its position on the termination of the services of four employees who had indulged in violence during the strike, and the suspension of 13 others pending enquiry, as part of the 'Fair and firm' approach.

''They were suspended for relatively less serious offences, and will be inducted after restoration of normalcy in two month's time,'' BAL vice president (motorcycles) Kailash Zanzari said.

Five other employees would remain suspended pending completion of the company-instituted enquiry committee.

''Besides, productivity and disciplinary norms will be restored within a week,'' Zanzari said.

BAL has around 1,350 employees at its Chakan plant of which around 850 are affiliated to the union.

The Chakan plant, with an annual capacity of one million units, makes the Pulsar, Avenger, Ninja and KTM bikes. The plant was working at 60 per cent capacity at the peak of the strike.

''We got support from the Waluj plant, and had even been considering shifting production to our Pantnagar facility. Things are resolved and we are now at around 85 per cent capacity utilisation,'' Zanzari said.