The management of Hindustan Aeronautics Limited (HAL) and labour unions arrived at a truce on December 10 to end the simmering industrial unrest which had shut down India's sole aircraft manufacturer earlier this year. It required the intervention of the Karnataka High Court to end the shut down, which disrupted work on critical military programmes. HAL is India's largest Defence PSU.

Under the terms of settlement, the management has agreed to implement a revised wage structure with effect from January 1, 2017 and conceded perks like fitment benefits and cafeteria allowance to the workforce.

Under the terms of settlement, the management has agreed to implement a revised wage structure with effect from January 1, 2017 and conceded perks like fitment benefits and cafeteria allowance to the workforce

"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 here yesterday between the HAL management and its Trade Unions. The MoU envisages revision of wage structure with effect from January 1, 2017, productivity improvement and other related matters," the HAL spokesperson announced in a statement on December 11.

"As part of the wage revision, the HAL management has offered fitment benefit @ 12 per cent and perks & allowances under cafeteria system (@ 25 per cent for workmen in scale 1 to 10 and @ 22 per cent for workmen in special scale) of the revised Basic Pay effective from January 1, 2017, besides other benefits," the statement added.

HAL has not disclosed the cost of the settlement.

"Upon ratification of the Board of Directors, a tripartite settlement before the labour authorities will be executed at different locations of the Company before notifying the revised wage structure," the spokesperson elaborated.