Renault-Nissan asked to pay Chennai plant workers 708.4 million interim dues

Renault and Nissan will have to pay higher wages to their workers.
By : HT Auto Desk
| Updated on: 18 Aug 2021, 09:51 AM
Chennai plant is majorly owned by Nissan. (AFP)
Chennai plant is majorly owned by Nissan. (AFP)
Chennai plant is majorly owned by Nissan. (AFP)
Chennai plant is majorly owned by Nissan.

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.

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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.

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.

First Published Date: 18 Aug 2021, 09:51 AM IST
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