Hyundai Motor India up 3%, at new high on signing long-term wage settlement

Hyundai Motor India up 3%, at new high on signing long-term wage settlement

At 02:13 PM; Hyundai Motor India was quoting 1.8 per cent higher at ₹2,700, as compared to 0.16 per cent rise in the BSE Sensex and 0.14 per cent decline in the BSE Auto index.

 

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Hyundai Motor India inks long-term wage settlement

 

The long-term wage settlement will be effective from April 1, 2024, through March 31, 2027, featuring an industry benchmark monthly salary hike of ₹31,000 apportioned over three years (55 per cent, 25 per cent, 20 per cent), alongside expanded health benefits and wellness programs for 1,981 employees, covering 90 per cent of technicians and workmen. The wage settlement underscores Hyundai’s commitment to fostering a progressive workplace culture built on dialogue, mutual respect, and prioritizing employee welfare.

 

For FY25, Hyundai Motor India’s employee cost stood at around ₹2,311 crore (~3 per cent of sales), with 1,981 unionized employees and a reported total permanent worker nearing 2,210 while permanent employees totalled 3,871. Total workforce for FY25 stood at ~17k for which the average annual cost per employee came at ~₹13.5 lakh (~₹ 1.1 lakh/month). Therefore, the present wage hike is substantial i.e. ~30 per cent, spread over 3 years. The financial impact of the same, however is expected to be calibrated and set off against potential rise in volumes from GST 2.0 reforms, ICICI Securities said in a note.