Pay Revision and Performance Pay at Pune
And here is some information about the recent settlements around Pune, which is fast becoming a big manufacturing hub.
1. Volkswagen has agreed to increase wages of their workmen by Rs 7,000 pm in the first year. It will be followed by increase of Rs. 1,500 pm each in the next two years. Thus, an average increase of Rs. 8,500 pm.
2. Thermax has reached a settlement with its employees. They will increase the wages by Rs 9730 pm. A performance pay scheme is expected to enhance this amount by another Rs 2,000 pm on an average.
3. Sandvik has signed a settlement which grants an estimated increase of Rs 5,000 pm to employees. Out of this amount, 50% will be accounted for by Performance Pay. The criteria too has been decided in the settlement.
4. HiTech Plast has increased wages of their employees by Rs 3,000 pm and offered a Performance Pay which can enhance earnings by a further Rs 2,000 pm.
5. Bosch has increased wages by Rs. 4,500 pm in the first year of settlement. In next two years it will be increased further by Rs. 2,000 pm each.
6. Tata Motors has reportedly introduced a performance Pay scheme linked to quality, volume of production etc. Details will be published soon.
So Performance Pay is no longer to be found exclusively in the pay packets of managers, almost all sets of employees are now sharing it. The trend in Pune makes it very clear.
This information does not tell us where all this takes the workers’ wages to. Well, but considering the vast and ever increasing gap between managers’ and workers’ pay nobody will be complaining.
[Picture courtesy: edweek.org]