As the strike call by the All-India HAL Trade Unions’ Coordination Committee (AIHALTUCC) entered the second day on Tuesday, the Hindustan Aeronautics Ltd. (HAL) management maintained that the demands of the employees were “unviable” and that they could not offer more pay keeping in mind the future financial prospects of the Public Sector Undertaking. The management has offered 9% to 24 % pay hike.
However, AIHALTUCC has decided to continue with the indefinite strike, arguing that their demands are “definitely fair and reasonable.”
Addressing presspersons, C.R. Ananthakrishnan, director, Finance, HAL, argued that the average wage increase is around 15%-16 %, which ranges from a minimum of 9% to a maximum of 22%. “This is quite substantial in today’s environment. The increase needs to be seen on gross basis and not element wise. The increase should be seen with effect from January 1, 2017, as compared to the base of January 1, 2007,” he said. He said that the present financial condition of the company was based on the previous contracts HAL had received over a period of eight to 10 years. “The wage revision we are negotiating now is for the next 10 years. So, we need to take a look at how are we going to perform in the next 10 years,” he said.
Speaking about the future prospects of the company, Mr. Ananthakrishnan said their attempts had been towards getting further orders and to make the “orderable position” of the company healthier. “Unless we are cost-competitive, this will not happen. Hence, apart form material, labour cost is a concern as our labour cost is around 24% and the industry average is around 15%-16%. We have to fill that gap,” he added. He also said that over and above the increase in wages, there was a question of cost to company, which would have an additional impact of 26% to the company apart from the monthly wage bill which will go up by 17%.
Speaking about the impact the protest would have on the company he said: “As of today, we will able to compensate the loss in the days to come. There is an impact but it is under control. Another major concern is that serviceability to the forces should not get affected.”
V.M. Chamola, director, HR, HAL, reiterated that wage revision for executives was done for 10 years and for workmen it was for five years. “There has been as many as 15 rounds of wage negotiations till now. We have made all the efforts from our side.” He also said that the company was in the process of “right-sizing the organisation.”
Meanwhile, Suryadevara Chandrashekar, general secretary of AIHALTUCC, said they would continue with the indefinite strike as their demands have not been met. “What the management has offered is definitely not fair or reasonable. They are just trying confuse the people and government,” he said. He contended that some of the revisions offered would result in some getting lesser pay. Srinivasa, of Hindustan Aeronautics Employees Association, said: “Our demands are not unreasonable. In fact, their offer is.” He said employees of all nine units across the country were on strike, technically bringing operations to a standstill.
