Hero MotoCorp workers are demanding a doubling of monthly salary to near Rs 1 lakh, apart from cheap housing and interest-free loans up to Rs 10 lakh. If met, the workers will become the best paid in the auto industry.
The management, however, is unwilling to concede, fearing any such increment level will not only make the business unsustainable. An experienced worker at Hero currently has a CTC (cost-to-company) between of around Rs 50,000. The labour union has demanded an increment of Rs 45,000 to be spread over 3 years.
Besides, the workers have demanded Rs 10 lakh in interest-free loans, limitless medical policy cover, subsidized housing and gifts on various occasions. Experts opine that such demands are often exaggerated since workers want to bargain later. It is similar to demanding a canon in the hope of getting a revolver. This one is no exception as a similar wish-list was presented by Maruti Suzuki's Manesar workers last year. They wanted a four-fold hike in salary, cheaper home loans, gifts with every car's launch and extra holidays. Despite resistance, the workers managed to get a salary increment of nearly 70%, interest-free personal loans and higher medical benefits.