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R. Balaji

CHENNAI, Feb. 22

ASHOK Leyland Ltd has signed a long-term wage settlement with its workers at the Ennore plant, involving a hike in pay and production. The settlement involves an average hike of Rs 3,500 per worker in addition to flexibility in work practices, according to union sources.

When contacted by Business Line, Mr R. Kuchelan, leading the Ashok Leyland Employees' Union, said the wage settlement was signed on Friday.

Earlier, the workers had cleared the terms at the general body and the secret ballot, he said. The settlement involves a hike of Rs 3,500-4,000, including incentive payments.

But apart from the wage hike, the workers have also agreed to flexible work practices such as redeployment, mobility and avoidance of overtime. These were aimed at the maximal utilisation of men and machinery, he said. The agreement covered about 7,000 workers at the Ennore plant, he said.

According to company officials, the wage hike includes an assured component of about Rs 2,300 - 2,400, and an incentive component of about Rs 700, which will mean an average hike of about Rs 3,000 per worker.

In addition, there had been increases in welfare and seniority weightage, they said.

The agreement paves the way for a smaller workforce and increased output. The number of working days per week continues to be five with the sixth day being optional. The assembly conveyor speed was to be increased to enable production of 96 vehicles per day from the current 80 - 85, they said. The management was keen on total flexibility, bringing down the number of indirect workers and improvement of work practices. It would also create a pool of 350 workers who will be deployed as required by the management, he said.

Sources said the management was looking at reducing about 20 per cent of the indirect manpower of 650 workers in non-production lines. The long-term settlement is for a three-year period effective from the date of signing. The previous settlement ended in December 2000. The negotiations for the current settlement commenced last year, they said.

Meanwhile, the management is also looking at announcing a voluntary retirement scheme, according to company officials.

The scheme is likely to be announced shortly, but the terms are yet to be finalised, according to sources.

The management is looking at reducing the workforce by 800, and in addition to the 350 to be brought into the common pool, 1,150 workers will be pulled out of day-to-day work, according to company officials.

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