Two-wheeler market leader Hero MotoCorp Ltd (HMCL) on Monday said it has signed a three-year wage settlement agreement with its workers at Gurgaon plant after months of negotiations.
It is understood that the company has agreed to hike salaries of worker on an average by Rs 9,000 per month over a period of three year as part of the agreement, which will be valid for three years with retrospective effect from August 1, 2012.
"HMC has successfully concluded the wage settlement process with the workers of its Gurgaon plant," the company said in a statement.
Talks between workers and management had remained inconclusive for nearly seven months with Hero MotoCorp Workers Union (HMCWU) demanding hike in monthly wages of up to Rs 18,000 over a three-year period, which was nearly three times higher than what the company was willing to pay.
With the settlement looking a far cry, in February this year the union had threatened that it was keeping the option of strike open and had held protests outside the factory gate at Gurgaon.
The Gurgaon plant of the company has 1,100 permanent workers.