India Yamaha Motor today announced the completion of its long-term wage settlement for its Chennai factory with the company’s internal employees union ‘India Yamaha Motor Thozhilalar Sangam’.
The company says the settlement agreement is a result of the continuous efforts made by both the IYM management and the internal union to build the trust factor with each other, maintain a cordial relationship and adopt a collaborative approach in order to establish a healthy work atmosphere for every employee at Yamaha.
The company says the IYM management took several steps to establish better communication with the employees and ensured regular communication is undertaken to understand their concerns, after the the massive labour unrest in the Oragadam Industrial area last year. The employees also came forward and utilised this opportunity to put forth their demands and participated in the discussions in a planned manner without affecting the company’s production targets.
The three-year wage settlement will be implemented with retrospective effect from April 1, 2019 and will remain effective until March 31, 2022. The settlement will be applicable to all the permanent confirmed workers in Yamaha’s Chennai factory. As per the agreement, the employees would also be eligible to get an additional increase in their CTC's (cost to company) depending on their productivity, level of the skill attained and experience over the three year period.
The settlement concept of wage fixation is basically based on three parameters — individual performance, shop performance and plant performance — which will not only improve the employee’s performance but also contribute in achieving company’s production targets from Chennai factory.
Motofumi Shitara, chairman, Yamaha Motor India Group of Companies, said: “We are thankful to the state government, the labour department and all our employees for extending their full support and cooperation in concluding the settlement agreement successfully. It is a significant achievement for the company and a major boost to the confidence of our employees at the shop floors. The agreement further reiterates our commitment of building a healthy working atmosphere within the company and nurture the concept of ‘One Yamaha’ among all."
Representing the company’s internal employees union, U Velmurugan said, “It is a golden moment for all of us. We trust the Yamaha management and their concern for the welfare of the employees. We will extend our full support in achieving the company’s target and future growth plans.”
The company says skill development has been given much impetus in the agreement wherein both the management and the union have agreed to continuously make efforts to encourage employees to upskill and participate in long term training and development program in order to excel in their roles and further contribute in achieving the company’s future business requirements. Apart from this, the company would be providing support to the employees through several welfare measures.