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19 November, 2000Atlas Copco (India) union had requested the intervention of the IMF and Swedish Metalworkers with the company's head office.
INDIA/SWEDEN: In August, after 8 months of negotiations for the 2000-2002 wage settlement, the IMF-affiliated Atlas Copco Employees' Federation (ACEF), in Pune, India, realised management did not intend to bargain in good faith. The ACEF then asked the IMF and the Swedish metalworkers' union, Svenska Metall, to intervene on its behalf, as Atlas Copco (India) is part of the Swedish-based industrial power tools manufacturer Atlas Copco Group of Companies.
Even though the ACEF had scaled down its original wage claims for a monthly increase, from INR 7,100 (US$152) to INR 2,774 ($59), covering all items including indirect benefits, management insisted the union should reduce its demands below those of the previous 3-year agreement, which saw a total increase of INR 2,245 ($48). The union found this unacceptable, pointing out that business was excellent, there had never been strikes or lockouts at Atlas Copco (India) in the 40 years of its existence, and industrial relations had always been very good.
The IMF-Pune Affiliates Coordination Committee, of which the ACEF is a member, met in late August and, showing its full support and solidarity with the ACEF, appealed in writing to company management to find an amicable settlement.
Finally, last week, after almost 11 months of negotiations, it seems the intervention of Svenska Metal with the company's head office has paid off. The ACEF concluded a three-year settlement, applicable from the date of signature, which offers the following wage increases (including direct and indirect):
- 1st year: INR 1,800 ($38.50)
- 2nd year: INR 2,250 ($48.10)
- 3rd year: INR 2,700 ($57.70)
There will also be a bonus of 20 per cent for the next three years, and social welfare activities plus other facilities will continue as before.
Even though the ACEF had scaled down its original wage claims for a monthly increase, from INR 7,100 (US$152) to INR 2,774 ($59), covering all items including indirect benefits, management insisted the union should reduce its demands below those of the previous 3-year agreement, which saw a total increase of INR 2,245 ($48). The union found this unacceptable, pointing out that business was excellent, there had never been strikes or lockouts at Atlas Copco (India) in the 40 years of its existence, and industrial relations had always been very good.
The IMF-Pune Affiliates Coordination Committee, of which the ACEF is a member, met in late August and, showing its full support and solidarity with the ACEF, appealed in writing to company management to find an amicable settlement.
Finally, last week, after almost 11 months of negotiations, it seems the intervention of Svenska Metal with the company's head office has paid off. The ACEF concluded a three-year settlement, applicable from the date of signature, which offers the following wage increases (including direct and indirect):
- 1st year: INR 1,800 ($38.50)
- 2nd year: INR 2,250 ($48.10)
- 3rd year: INR 2,700 ($57.70)
There will also be a bonus of 20 per cent for the next three years, and social welfare activities plus other facilities will continue as before.