Maruti may irremissibly hike workers salary

The biggest car manufacturers of the country, Maruti Suzuki India might be required to increase the salary of the workers at the Gurgaon assembly line by double digits. The company had last increased the salary of the workers two years back by around 5 to 6 percent. As reported in reputed news daily, the employees at Gurgaon unit, including around 3000 all time workers have now asked for a salary hike in double digits. The employees at the Manesar set up are also planning at making a union. Meanwhile communication between the company and about 1200 workers at Gurgaon has begun. The Manesar workers however have planned to begin negotiations with the company sometime in the month of March.

 

The process of increasing the salary is a periodic activity which is carried out after every 2 to 3 years at the company. According to speculations, the newly formed union will be considerably powerful as was proved by the Maruti strike at the Manesar assembly line in 2011. The strike which lasted for 4 months caused serious losses to the company as the production came down by around 1.06 lakh Maruti cars in India in the previous year. It further delayed the company's strategies to introduce new models.

 

To add to the losses, the market share of the company came down to as low as 38% which was lower than ever before. Moreover the profit of the company decreased by 39% touching 995 crore in the first 9 months of the financial year. The sale was also hampered by 14% coming down to 8,88,794 units. However, now both the sales in the domestic market and the exports have marginally improved. According to Maruti's managing executive officer, Mr. Mayank Pareek, the company is optimistic about recovering in the last 3 months of the fiscal by selling more number of diesel variants. The company recently sold their 10 millionth vehicle-a Red Swift Vxi from the Manesar plant after their dominance in the Indian market for 29 years.