HAL, trade unions settle wage revision issue with an MoU

Bengaluru: The wage revision issue which had prompted the trade unions at state-run HAL (Hindustan Aeronautics Limited) to go on a nearly 10-day-long strike in October has finally been settled. The management and its workforce entered into an agreement on Wednesday to settle the wage revision at HAL.

MoU signed between HAL management & trade unions

According to a press release, a Memorandum of Understanding (MoU) was signed at HAL Corporate Office here between the HAL management and its trade unions. The MoU envisages revision of wage structure with effect from January 1, 2017, productivity improvement and other related matters.

As part of the wage revision, the HAL management has offered fitment benefit at 12 percent and perks and allowances under cafeteria system (@25 percent for workmen in scale 1 to 10 and @22 percent for workmen in special scale) of the revised Basic Pay effective from January 1, 2017, besides other benefits.

Board yet to ratify the agreement

Upon ratification from the board of directors, a tripartite settlement before the labour authorities will be executed at different locations of the company before notifying the revised wage structure, the press release said.

The backdrop

The tussle between the HAL management and the trade unions has been going on since 2017 on the issue of wage revision. The HAL management had revised the periodicity of wage hike from 5 years to 10 years. This change was contested by the trade unions who claimed that it violated DPE guidelines. To oppose the move, the unions went on an indefinite strike from October 14 which went on till October 23. The strike was called off only after the Karnataka High Court restrained employees from continuing the agitation. Thereafter, negotiations were going on between the management and the trade unions to reach a settlement.