MUMBAI: After months of negotiations and intermittent unrest impacting production, Pune-based Bajaj Auto and its Chakan plant unions have finally reached a wage agreement under which the management has agreed to hike the wages by up to Rs 10,000 per month.

As per the revised wage agreement, permanent employees having been with the company for five or more years will get a wage hike of Rs 10,000 a month while those having spent three years or more will be given Rs 9,500 a month.

"We are happy that the Chakan union has agreed to our proposals on the wage hike, which we had come up with at the time we entered into negotiations with them," a company official told PTI and confirmed the wage hike pact reached with its union.

The settlement was reached last week with the management and the Chakan plant employees' union Vishwakalyan Kamgar Sanghatna.

Under the settlement agreement, the management has also decided to convert the earlier Rs 12,000 annual attendance award for full attendance to Rs 1,000 per month, company sources said here.

The new agreement will be effective retrospectively from April 1, 2013 for three years and ends the near 18-month uncertainty, which was marked by strikes and frequent labour unrest at the company's main plant at Chakan near Pune.

Apart from the wage hike, the other major demand was the near-free allotment of Bajaj shares to them through and Esop agreement, which managing director and chief executive Rajiv Bajaj had vehemently opposed. Significantly, the new wage agreement does not include the Esop.

As per the agreement, 60 per cent of the revised wage will be part of the basic pay and the rest in allowances.

Besides, the existing regular attendance bonus of Rs 480 has been revised and half of this (Rs 240) will be merged and the rest divided into weekly pay of Rs 60 each.

"In all, the minimum hike now stands at Rs 10,280 and the maximum at Rs 11,520 following the tweaking of perks and variables," a union source said.

PTI