BEML Limited, the Bangalore-based defence PSU, has concluded wage settlement with its employees unions at Bangalore, Mysore, KGF complexes and marketing division at the corporate office in Bangalore.
The settlement, signed in the presence of labour commissioner, will be in force for a period of ten years with retrospective effect from January 1, 2007 and around 9,382 employees would benefit from it, the company said in a statement.
With this settlement, the employees would get 25 per cent fitment benefit, increase equivalent to 5 per cent fitment amount in allowances, enhancement in Service Weightage, introduction of Special Pay in addition to considerable upward revision of incentives and several other benefits. Notable among them is the welfare content which includes enhancement of life insurance coverage to Rs 4 lakh, increase in post retirement medical insurance coverage, setting up of computer kiosks at every manufacturing complex, computer grant of Rs 10,000 among others.
The settlement will cost the company about Rs 60 crore per annum. In return, the employees have agreed to increase the productivity to 130 standard man hours from 100 SMH earlier. The employees agreeing to increase the threshold limit of the SMH are expected to generate about 285,000 additional SMH and the company is anticipated to garner about Rs 108 crore in its value of production. BEML is eyeing a turnover of Rs 4,200 crore during 2010-11, the statement added.