In India, Renault-Nissan condemned to better pay its employees

Renault-Nissan, which shows losses in India will have to pay more its some 3,500 workers.

AFP / File

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The automaker will have to pay more for its 3,500 Indian workers.

It is the arbitration rendered by the High Court of Madras between the manufacturer and its employees in wage sling.

Consequence of this decision: the group must already pay them 8 million euros.

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With our correspondent in Bangalore,

Côme Bastin

Renault-Nissan proposed 30 euros of monthly increase, employees demanded 230. The High Court of Tamil Nadu has opted for a compromise by requiring the manufacturer 80 euros per month additional for employees. 

Since March 2019, the workers' union and the management of Renault-Nissan in India no longer had a wage agreement.

There followed claims and a one-year legal procedure brought by the employees to the Chennai Court. 

Salary twice less than at Ford and Hyundai

According to unions, Renault-Nissan paid between 100 and 200 euros per month, half as much as manufacturers such as Ford and Hyundai.

The group claimed for its part that it was already unable to make its giant factory in Chennai profitable, and threatened to destroy jobs. 

Made public this week, the judgment is retroactive.

The manufacturer will therefore have to pay 8 million euros in arrears to its 3,546 workers.

In addition to increasing wages, it will have to offer them better insurance and better working conditions. 

The employees welcomed the arbitration positively.

Renault-Nissan

, which shows losses in India, denounced unrealistic demands. 

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