CHENNAI: Franco-Japanese automotive alliance Renault-Nissan has concluded a long-term agreement with employees considered as a landmark towards building of a sustainable and successful future for the Tamil Nadu plant, a top official has said.
Renault-Nissan Automotive India Pvt Ltd recently announced investments of USD 600 million about Rs 5,300 crore which would see the rollout of six new models including two electric vehicles at its plant in Oragadam near Chennai to serve domestic and overseas markets.
"RNAIPL today announced the conclusion of a long-term settlement agreement with its worker's representative union -- Renault Nissan India Thozhilalar Sangam (employees union)", the company said in a statement.
The management and the union have jointly submitted the settlement before Madras High Court retired judge P Jyothimani in arbitration proceedings, following which an award has been passed in terms of settlement, it said.
Commenting on reaching the agreement, RNAIPL managing director Keerthi Prakash said, "we are very happy to reach this important agreement, ensuring employee voices were directly represented in securing a competitive settlement while at the same time keeping the welfare and aspirations of the workforce as our top priority."
"This is another step forward in our journey to build a sustainable and successful future for the plant," he said in a statement.
The settlement with the employees union would ensure long-term stability and covers a period of April 1, 2019 to March 31, 2025.
Renault Nissan Automotive India Pvt Ltd commenced operations in 2010 at its facility in Oragadam about 45 km from here and has produced over 2.4 million vehicles.
Besides serving domestic market, the vehicles are shipped to 108 countries.