Hero Motocorp Ltd. on Monday signed a three-year wage agreement with its permanent workforce in Gurgaon that would give 1,400 workers a hike of about Rs. 12,500 over three years with retrospective effect from August 2015.
The hike is lower than the wage increase of Rs. 18,000 the workers were demanding, PTI quoted an industry source as saying. The agency added that a company spokesperson confirmed the development but was not willing to share more information.
The three-year agreement will be valid till July 2018. The workers at the Gurgaon plant were upset at the delay in finalising the hike, prompting them to go on strike in March this year.
"The wage settlement has been pending for a while now, We are demanding that that it should be completed at the earliest," Harish Sharma, president of Hero MotoCorp Gurgaon Worker Union, had told ETAuto on March 22.
The company's other manufacturing units are in Dharuhera (Haryana), Neemrana (Rajasthan) and Haridwar (Uttarakhand) with a combined capacity to make 8 million vehicles. The fifth unit at Halol (Gujarat) is likely to go on stream during this financial year, PTI said.
During June 2016, Hero Motocorp sold 5.49 lakh units as against 5.42 lakh two wheelers sold last June.
The share price of Hero Motocorp closed at Rs. 31,61.75, down 0.47 percent from its previous close.