Chennai: Motorcycle maker Royal Enfield, part of Eicher Motors, has signed a three-year wage settlement with the Vallam Royal Enfield Employees Collaborative Union (VREECU), covering 638 Associate Engineers at its Vallam Vadagal plant near Chennai.The settlement is effective for three years, from April 1, 2026, to March 31, 2029, replacing the previous agreement that expired on March 31 this year, according to the wage pact document.Under the pact, workers will receive a total wage increase of Rs 40,000, including welfare benefits, phased over three years. The increase will be Rs 20,000 in 2026-27, Rs 12,000 in 2027-28 and Rs 8,000 in 2028-29. They will also receive a one-time integration and goodwill payment of Rs 40,000, subject to eligibility.The existing 5% annual variable pay will be merged with monthly gross wages, with no separate variable-pay payout during the settlement period.The agreement also provides for higher shift allowances, a Rs 500 monthly allowance for employees in essential departments, a Rs 300 Sunday allowance for need-based work and an increase in the grade-promotion increment to Rs 1,250 from Rs 1,000.Other benefits include an annual interest-free salary advance of Rs 70,000, a Rs 5,000 Ayudha Pooja voucher and doubling of the group medical insurance cover to Rs 4 lakh. Leave benefits have also been enhanced, including additional casual and sick leave, three days of bereavement leave and accumulation of sick leave up to 100 days. Both the company and the union have agreed to maintain industrial peace.The Vallam Vadagal unit, the company’s third factory, commenced operations in 2017. The company has recently added a dedicated line for the production of electric vehicles.
