Hyundai Motor India Ltd (HMIL), the country’s second-largest passenger vehicle manufacturer, is on the verge of finalising a new long-term wage settlement with its recognised employee union, the United Union of Hyundai Employees (UUHE).
The development marks a significant moment in the company’s industrial relations, especially as it navigates a complex landscape involving competing union claims and ongoing legal proceedings.
Hyundai Motor Wage Agreement Background: The Previous Agreement
The last long-term wage agreement between HMIL and UUHE was signed in June 2022, with retrospective effect from April 1, 2021, and remained valid until March 31, 2024.
That three-year deal included a phased salary increase of ₹28,200 per month, distributed in a 55%-25%-20% ratio over the term.
A total of 2,239 technicians benefited from the revised package.
Current Negotiations and Expected Outcomes
Sources indicate that the current round of negotiations between HMIL and UUHE has progressed significantly, with a new agreement expected to be signed imminently.
Over 2,000 technicians affiliated with UUHE stand to benefit from the revised wage structure.
In a statement, Hyundai confirmed that discussions are ongoing and follow standard industry practices involving multiple rounds of negotiation.
The company emphasized its commitment to offering competitive compensation, ensuring employee well-being, and maintaining operational continuity.
The Role of UUHE and Legal Recognition
UUHE continues to be the officially recognised union at HMIL, as per the Labour Department of the Government of Tamil Nadu.
This recognition grants it the exclusive right to negotiate wage settlements on behalf of the workforce.
Hyundai Motor Rising Tensions: The HMIEU Challenge
However, the wage talks are not without controversy.
The Hyundai Motor India Employees Union (HMIEU), backed by the Centre of Indian Trade Unions (CITU), has challenged UUHE’s status, claiming majority support among the factory’s unionised workers.
According to HMIEU, over 1,350 of the 2,420 union workers are affiliated with their organisation.
HMIEU has demanded a secret ballot to determine the true majority union and has filed a writ petition in the Madras High Court seeking judicial intervention.
In response, Hyundai filed a complaint alleging that HMIEU submitted forged signatures in its voter list.
The matter remains sub judice, and Hyundai has declined to comment further.
Operational Continuity Amid Disputes
Despite the ongoing tensions, Hyundai’s Chennai plant operations remain unaffected.
The facility, located in Sriperumbudur, boasts an annual installed capacity of 824,000 units and currently operates at over 92% capacity.
The plant manufactures a mix of electric and internal combustion engine vehicles, including the Creta Electric, Ioniq 5, and 12 ICE models.
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