Labour-management imbroglio over worker salaries continues at Hero MotoCorp

Gurgaon, January 31, 2013: The labour-management imbroglio over a hike in workers' salaries continues unabated at Hero MotoCorp's Gurgaon plant in Haryana. The last round of negotiations before the deputy labour commissioner (DLC) held on January 29 failed to break the stalemate. The next round of talks before the DLC is to be held today.

Anuradha Lamba, DLC of the region, told Autocar Professional that both sides held firm on their demands. Workers have been steadfast about a monthly hike in wages to the tune of Rs 15,000-18,000 over a three-year period. The company meanwhile is said to be offering an increment of around Rs 6,500 over the same period as part of a wage settlement agreement.

This was the hike offered to the company’s workers at its Dharuhera plant during the three-year agreement signed in 2011. But workers at the Gurgaon plant are not happy with this offer.

Lamba says that representatives of the Hero management are also offering a subsidy to workers for housing schemes including help in purchase of land to build a house. Besides, the company has also drawn up an attractive picture of monthly installments to be paid on housing schemes by workers. The workers, however, are not satisfied with the offer and are sticking to their demand for the specified wage hike.

In case the next round of talks in front of the DLC fails, the conciliation process could be referred to the courts.

Hero MotoCorp has, in the past few months, been bogged down by labour strife triggered off since August 2012. The standoff involves around 1,200 permanent workers, who are banded together under the Hero MotoCorp Workers Union (HMCWU). The Gurgaon facility manufactures two-wheelers like the Passion, Maestro and Pleasure.

The union had submitted its demand in August with its representatives negotiating with the management since then. The workers have been demanding a higher wage hike similar to that given at Maruti Suzuki and HMSI after their wage settlement.

While Hero MotoCorp officials were not available for comment, an earlier statement from the company said: "As stated earlier, 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. As the industry leader, we will take prudent and a well-deliberated decision which will be in the best interest of all our workers as well as for the larger good of the industrial environment in the region.

"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 workers are expected to decide their future course of action after the next round of talks in front of the deputy labour commissioner.

SHOBHA MATHUR