The Hindu Business Line : Bajaj’s Waluj plant workers get pay hike

Pune, Aug. 17 Two-wheeler manufacturer Bajaj Auto Ltd (BAL) has signed a wage settlement for nearly 4,000 workers at its Waluj plant near Aurangabad, even as the 2,700 workers at the mother plant at Akurdi, near Pune, have reportedly been told that nothing material might come their way.

As per the terms of the new agreement, workers in the first, second and general shifts at Waluj will give a “net production output of 480 minutes,” over and above time spent for lunch, tea and changing shifts. The existing time standard, a walking speed of 3.6 miles (5.7 km) per hour, has been revised to 3.9 miles (6.2 km) per hour. On their part, the workers have got a sizeable raise of Rs 4,500 in their monthly pay packets.

The settlement is significant for more reasons than one. Firstly, it has drawn the curtains on an issue that has been delayed by 40 months due to legal wrangles. Secondly, the 480-minute working day is an industry first in the manufacturing sector. Finally, though the soon-to-come bike Bajaj Xceed is currently being manufactured here, the management is clear it will downsize Waluj progressively.

Calling the settlement an optimum rather than a handsome one, Mr Rajiv Bajaj, Managing Director, BAL, asserts, “This is because of two reasons. First, because it has been arrived at almost three-and-a-half years after it was due and in a sense covers two settlements. Secondly, the workmen at Waluj have continued to improve quality and productivity throughout this period of time by proactively adopting TPM (total productive maintenance). Thus, they deserve this increment.”

At Akurdi, on the other hand, where production is down to 2,000 units per month from 50,000, the largesse seems less visible. A company official says, “We have no demands on the workers here. So they have been told that they may not get any raise.”

Responding to this, Mr Bajaj says, “The un-competitiveness of Akurdi is to do with Government policy and company priorities, and the workmen are not to blame. They have been cooperative in introducing new products and in implementing TPM. However, the reality still is that in its current state, it is uncompetitive.”

He continues, “We will reach a settlement at Akurdi as well. A different kind of one, whereby both management and workmen understand and accept the sacrifices that must be made in order to restore its competitiveness. The specifics of these discussions are confidential.”

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