India Yamaha Motor (IYM) on Thursday announced that it has reached a major breakthrough by announcing the completion of its long term wage settlement for its Chennai factory. The wage settlement was entered with the company’s internal employees’ union, ‘India Yamaha Motor Thozhilalar Sangam’.

In a press statement, the company said that the three year wage settlement will be implemented with retrospective effect from April 1, 2019 and will remain effective until March 31, 2022. 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 skill attained and experience over the three year period.

The settlement concept of wage fixation is basically based on three parameters - Individual Performance, Shop Performance and Plant performance, the statement said.

The wage settlement agreement comes as a major relief for the Japanese two-wheeler producer, which was marred by large scale labour unrest issues last year which later spread to other automobile makers in the Oragadam Industrial belt.

The settlement agreement is a result of the continuous efforts made by both the IYM management and the company’s internal union to build the trust factor with each other, maintain a cordial relationship and adopt a collaborative approach in order to establish a healthy work atmosphere for every employee at Yamaha, the company’s statement added.

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