After negotiating for almost a year, auto maker Mahindra and Nashik plant union have reached an agreement on the wage settlement and a higher output, sources said.

The two sides are likely to sign the revised wage pact on Ganesh Chaturthi day on September 9.

“The wage revision issue with the management is resolved now. We will be signing the agreement on September 9,” sources in Mahindra Nashik Plant Workers Union said here.

When contacted, a Mahindra official confirmed the development but did not divulge details of the agreement.

According to sources, the management will give an average wage hike of Rs 9,300 per month to all its 2,950 permanent employees at the facility and the union has agreed to scale up production by 18 per cent in a quid-pro-quo arrangement.

The Nashik plant employs around 4,000 workers, out of which 1,000 are on contract, and produces the Bolero, Scorpio, Xylo and Quanto models besides the sedan Verito. It rolls out 550 vehicles per day in three shifts.

The proposed agreement will be applicable for three and-a-half years, sources said, adding, “As part of it, the management has also agreed to operate a bus a service from Nashik city to the plant to facilitate easy movement of the workforce, the expenses of which will be borne by the company and the union in a 60:40 fashion.”

Besides, the company will also provide job to the kin if the worker dies while on job, they said.

The union had been negotiating with the management for wage revision since last October. It also went on strike first in March and then in May over the issue.

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