News: No salary cut during lockdown, carmakers hand out pay hikes and promotions to workers-20-07-2020

https://economictimes.indiatimes.com/industry/auto/auto-news/carmakers-hand-out-pay-hikes-and-promotions/articleshow/77055808.cms

MUMBAI|NEW DELHI: Having assured employees of no salary cuts or job cuts, carmakers in India are gradually concluding their increment and promotion cycle as the market recovers faster than expected. Toyota Kirloskar has announced pay hikes for non-unionised workers, while Hyundai MotorIndia has raised the wages of factory workers and is in the process of deciding on increments to oice executives. Market leader Maruti Suzuki NSE 1.22 % is likely to release bonus and incentives in the coming two months, while MG Motor is expected to announce pay hikes quicker than previously planned. With the outbreak of Covid-19 and the lockdown coinciding with the pay-revision cycle, and since the past year was one of the worst for the automotive industry, there was major anxiety within the workforce about possible job and salary cuts. While the vehicle makers have protected their workforce from the nancial shock of Covid-19, many component supplies and dealers have cut both salaries and jobs, with their cash ows drying up during the lockdown. Almost two months since the resumption of operations, 10 of the 14 carmakers have released bonuses and incentives for last year and half a dozen of them have given promotions or are in the process of doing so. Honda, Toyota and Renault have given pay hikes of 4-14%, depending on the base salary and position. Hyundai Motor India senior vice president — people strategy and business support — Stephen Sudhakar said the company had announced promotions to blue-collar workers on the shop oor as per their eligibility. It had released their performance bonuses in March itself. “We are in the process of rming up our plans for the junior, middle and senior-level executive cadres,” added Sudhakar