Hyundai Motor India (HMIL), a wholly owned subsidiary of South Korean auto maker Hyundai Motor Co., today entered into a wage settlement with its workforce.

The agreement was signed today directly between the Workers Committee and senior management of HMIL, which will remain valid for three years.

The settlement comes two months after its workers in Chennai last staged protests demanding the right to organize a labour union, among other things.

The settlement, taking into account various factors, gave a pay increase of 21-24 per cent over a three year period to workers.

The hike would immediately impact all 1,600 permanent technicians at the factory.

It should be noted that this is the ninth wage settlement with the Workers' Committee since inception of HMIL in 1996. The company claimed that with the increase in wages, HMIL workers become the highest paid technicians in the automobile sector.