The Hindu Business Line : Labour discontent continues at Hyundai Motor

Chennai May 9 Hyundai Motor India has said that its senior Vice-President - Human Resources, Mr G.S. Ramesh, has stepped down from his post with effect from today. According to a press release, Mr Ramesh has taken the decision due to personal reasons.

This development gains significance against the backdrop of the ongoing tension between the Hyundai management and its workers at its car factory at Irrungattukottai near Chennai.

There has been dissatisfaction among the confirmed employees and the contract labour over wages and working conditions. Over the last three days, contract labour workers have been agitating outside the factory premises. Earlier, the confirmed employees led by the Works Committee, a workers representative body within Hyundai, were on an agitation.

According to company spokespersons, the issue with the contract labourers was settled on Tuesday. Also, the workers were not directly employed by Hyundai but through contract agencies.

However, workers' representatives do not agree. The demonstration continues, they say.

Pay hike demand

The company has not accepted their major demand for a hike in pay. The daily wage works out to less than Rs 150 for a worker who has been with the company nearly since its inception. After deductions such as transport charges, uniform, shoes, ESI and provident fund, the worker takes home less than Rs 100, a worker said.

The confirmed employees, over 1,800 workers, have also expressed dissatisfaction.

The Tamil Nadu Labour Department is in the process of intermediating between the workers and the management on a proposal by Hyundai to move its spare parts division to a group company, Mobis India, which handles the logistics of spare parts movement for Hyundai globally.

According to sources in the know, conciliation between the Works Committee and the Hyundai management broke down on Tuesday after the management refused to compensate the workers for the business transfer. The workers have also taken the issue to court.

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