HAL agrees to wage revision, signs MoU with trade unions

Ralph Alex Arakal

Representatives of HAL trade unions sign the Memorandum of Understanding (MoU) with the management in Bengaluru. Express Photo

The Hindustan Aeronautics Limited (HAL) Wednesday agreed to a wage revision, a longstanding demand of the employee unions who went on a strike earlier this year over the matter.  HAL officials confirmed to IndianExpress.com that the revision in the wage structure will be with effect from January 1, 2017.

"The HAL management and its workforce entered into an agreement to settle the wage revision. A Memorandum of Understanding (MoU) was signed at HAL Corporate Office in Bengaluru between the HAL management and its Trade Unions," Gopal Suttar, Chief of Media Communications, HAL stated.

He added that the MoU also envisages productivity improvement and other related matters apart from wage revision.

According to the statement released by HAL, a tripartite settlement before the labour authorities will now be executed at different locations of the Company, before notifying the revised wage structure. "As part of the wage revision, the HAL management has offered fitment benefit @ 12% and perks & allowances under cafeteria system (@ 25% for workmen in scale 1 to 10 and @ 22% for workmen in special scale) of the revised Basic Pay effective from January 1, 2017, besides other benefits," the statement read.

HAL workers across India went on strike from October 14 to 22 earlier this year, demanding 15 per cent fitment benefit and 35 per cent perks with effect from January 1, 2017, similar to what was offered to their executives.


Over 19,600 workers took part in the agitation then, making it perhaps the longest and biggest strike the company had witnessed. However, the Karnataka High Court on October 22 passed an interim order that restrained the employees of Hindustan Aeronautics Ltd (HAL) from continuing their strike.


Earlier this month, on December 2, Defence Minister Rajnath Singh had said in Rajya Sabha that the labour union had resumed work after the High Court judgement but negotiations were on between the management and the labour unions.

The minister had said that the HAL management has negotiated with workmen and trade unions for their wage revision based on government guidelines of November 24, 2017 on wage policy for Central Public Sector Enterprises.

The issue of wage revision has been discussed by HAL management in consonance with the statutory provisions and also keeping in mind the interest of the company, employees and nation at large, he said.

(With PTI inputs)