CHENNAI: India Yamaha Motor (IYM) has reached a three year-wage settlement for its Chennai factory with the company’s internal employees union India Yamaha Motor Thozhilalar Sangam. The company said on Thursday that the 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 workers in Yamaha’s Chennai factory.
As per the agreement, the employees would also be eligible to get an additional increase in their CTCs (Cost to the Company), depending on their productivity, level of the skill attained and experience over the three year period. The company said the settlement concept of wage fixation was based on three parameters - individual performance, shop performance and plant performance.
This will not only improve the employee’s performance, but also contribute in achieving the company’s production targets from the Chennai factory. After the massive labour unrest in the Oragadam Industrial area last year, the IYM management took several steps to establish better communication with the employees and ensured regular communication was made with them to understand their concerns, the company said in a release.
“The employees also came forward and utilized this opportunity to put forth their demands and participated in the discussions in a planned way, without affecting the company’s production targets. The efforts were made with an objective to provide a peaceful, positive and conducive environment for everyone at Yamaha,” the release stated. “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,” said Motofumi Shitara, Chairman, Yamaha Motor India Group of Companies.
Salary increment as per capability
As per the agreement, the employees would also be eligible to get an additional increase in their CTCs (Cost to the Company), depending on their productivity, level of the skill attained and experience over the three year period.