Renault-Nissan asked to pay Chennai plant workers ₹708.4 million interim dues
An Indian arbitrator has asked the automakers Renault-Nissan to pay its 3,542 workers in the Chennai plant to pay an average of more than ₹7,100 per month as additional wages. This amount has to be paid as interim relief to the workers, reports Reuters. It will cost the alliance a total amount of ₹708.4 million.
The workers at the Chennai facility of the Renault-Nissan alliance filed an industrial arbitration, demanding ₹20,000 as a monthly interim settlement. This came as the previous wage agreement expired in March 2019. In response, Renault and Nissan agreed to pay an average of ₹2,250 every month ending March 2021. But the workers were demanding higher pay.
This led to a legal battle between Nissan and its worker union since July this year after both sides failed to reach a mutual agreement over several issues. This also included the higher wages. Nisan claimed that paying higher wages as per the workers' demand is unviable in the long run.
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On August 16, a court ruling ordered Renault-Nissan shall pay ₹10,000 per month for the 12 months ending March 2020. Also, the alliance have to pay ₹5,000 per month for 16 months ending July 2021.
The mandate comes for Nissan at a time when the company is still struggling to grab a significant market share despite investing $1 billion in the country. The automaker last year announced that it aims to restructure the business in India among some other key markets. The mandate comes as a blow to Renault as well, which has been struggling in the Indian market despite being here for a long time.