New Delhi: Two-wheeler maker India Yamaha Motor (IYM) Pvt Ltd on Thursday said it has signed a three-year wage settlement agreement with its workers at Chennai factory. The pact will be implemented with retrospective effect from April 1, 2019, and will remain effective until March 31, 2022, the company said in a statement without sharing the details of hike in the salaries of the workers.
The agreement has been signed between the management and the company's internal employees union 'India Yamaha Motor Thozhilalar Sangam', it added.
The company had faced massive labour unrest last year and has since been working to sign a wage settlement agreement.
Commenting on the development, Yamaha Motor India Group of Companies Chairman Motofumi Shitara said, "It is a significant achievement for the company and a major boost to the confidence of our employees at the shop floors."
The agreement further reiterates the Yamaha's commitment of building a healthy working atmosphere within the company and nurture the concept of 'One Yamaha' among all, he added.
"Yamaha has always valued the relationship with its workforce and has ensured their comfort and safety throughout," Shitara while thanking state government, labour department and employees for their co-operation.
The company said the settlement will be applicable to all the permanent confirmed workers in Yamaha's Chennai factory.
"As per the agreement, the employees would also be eligible to get an additional increase in their CTCs depending on their productivity, level of the skill attained and experience over the three year period," it added.
Yamaha said the settlement concept of wage fixation is based on three parameters - Individual Performance, Shop Performance and Plant performance which will not only improve the employee's performance but also contribute in achieving company's production targets from Chennai factory.