Homeeconomy News

Employee strike may impact company in long-term if it continues, says HAL chairman

This article is more than 2 year old.

Employee strike may impact company in long-term if it continues, says HAL chairman

Mini

Hindustan Aeronautics Limited (HAL) chairman and managing director R Madhavan said the ongoing strike by HAL workers could have an impact on the company in the long term, and defended the management's proposal of wage revisions. 

Employee strike may impact company in long-term if it continues, says HAL chairman
Hindustan Aeronautics Limited (HAL) chairman and managing director R Madhavan said the ongoing strike by HAL workers could have an impact on the company in the long term, and defended the management's proposal of wage revisions.
Nearly 20,000 HAL employees have gone on an indefinite strike over wage revision, complaining about the mismatch in hikes given to officers and workers.
"We have given the best possible wage revision scheme within the defined framework. We expected that they will go along, because the wage revision is in line with other defence public sectors or even more," Madhavan told CNBC-TV18 on the sidelines if the Synergia Conclave in Bengaluru over the weekend.
HAL management has proposed an 11 percent fitment benefit and 22 percent perks for 1 to 10 scale and 20 percent perks for SS 1 scale, but the protesting employees have said that it is lower than the 15 percent and 35 percent perks given to the executives.
The HAL chairman said that while the strike has not affected production currently, there could be a long-term impact if it continues.
"The strike has not impacted production as of now, production is still on. Tenure-based employees are coming in, there is insourcing and vendors are also producing," Madhavan said.
"But there could be long term impact if strike goes on," he added.
Madhavan defended the management's decision on the wage revision stating that the officers had a ten-year period for wage revision, while other employees were given a revision in 2012 to the extent of 14 percent.
While HAL says wages of workers have been revised twice in the last ten years — in 2007 and 2012 — while officers’ wages were revised in 2007 for a period of 10 years, workers say a single wage revision was done in two parts — in 2007 and 2012.
next story

Market Movers

Currency

CompanyPriceChng%Chng