New Delhi, Nov 06: Maruti Udyog today said that it has entered into a new five-year wage settlement with its employees' union, aimed at drastically cutting costs and simplifying the wage structure. As per the new wage settlement, to be effective from November 1, 2003, the annual wage growth of employees has come down to 3.5 per cent from nine per cent earlier.

Besides, the one-time increase has also been brought down to 5.9 per cent from the 27.18 per cent as per the previous wage settlement effective since 1996.

"With this wage settlement, Maruti's normally high wage will be aligned closer to the market," the company said in a release.

Bureau Report