India’s second-largest passenger vehicle maker Hyundai Motor India Ltd (HMIL) will soon sign a long-term wage settlement with its recognised union, the United Union of Hyundai Employees (UUHE). 

Sources told businessline that the company is close to finalising the negotiations on the long-term wage settlement with the recognised union. Over 2,000 technicians of the company are associated with this union, and the three-year-old agreement was last signed in June 2022. It was implemented retrospectively from April 1, 2021 to March 31, 2024.

When asked about the wage negotiations, Hyundai said in a statement that long-term settlements are a standard industry-wide practice involving multiple rounds of discussions and negotiations. “We are currently engaged in ongoing discussions with union representatives of UUHE, which is the recognised majority union at Hyundai Motor India Ltd, and as per the Labour Department of Government of Tamil Nadu,” the company’s statement said, without going into the specifics of the discussions.

“We remain focused on reaching a mutually beneficial outcome. HMIL leads the industry in offering among the best-in-class wages and benefits, and prioritises employee well-being and operational continuity as part of its long-standing commitment to India and the automotive industry,” the statement added.

In relation to the CITU-backed union, which wants to be part of the wage revision, the company said it is an unrecognised minority union. In lieu of the ongoing litigation before the court, the company cannot comment on any matters which are sub-judice, the company added.

The previous three-year wage settlement was implemented with retrospective effect from April 1, 2021, and remained effective until March 31, 2024. The package saw a salary increase of ₹28,200 per month (in the ratio of 55 per cent, 25 per cent and 20 per cent for a period of three years) amongst other benefits. As many as 2,239 technicians of the company benefited from the revised wage package, according to the 2022 agreement.

Published on June 23, 2025