Hyundai workers dump wage pact, continue stir
25 July 2009
Hyundai Motor India Ltd seems to be in for more trouble with a strike by workers entering the third day today. The labour strike at Hyundai's two plants continued despite the company signing an MoU with the workers on Thursday.
Around 1,000 workers belonging to Hyundai Motor India Employees Union (HMIEU), struck work on Thursday evening protesting against the wage agreement signed between the management and the Workers' Committee.
The Workers' Committee, set up by the management, does not represent the employees in the factory and the agreement is against the directive given by the labour commissioner, say union leaders.
They said the management has violated the direction given by the labour commissioner that no wage agreement should be entered with the Worker's Committee.
The new wage agreement, which is effective from 1 April, gives a 21-24 per cent wage hike to over 1,600 permanent employees.
While the two plants are still working, company sources said around 20 per cent of the production has been affected. The company on an average rolls out around 2,000 cars per day from its two plants located at Irrungattukottai near Chennai.