New Delhi, March 25 (PTI): General Motors India today signed a three-year wage agreement with workers of its Talegaon plant in Maharashtra, with average salaries set to go up by Rs 22,000 at the end of the period.

The new wage pact will be effective from April 1, 2017 and come to an end on March 31, 2020.

The Talegaon plant has over 2,500 workers.

"Under the new agreement, the workers will receive 80 per cent of the increased component in the first year followed by 10 per cent each in the remaining two years, respectively," General Motors India said in a statement.

Commenting on the development, Pritpal S. Kular, GM India vice-president, human resources, said: "It is an important step in our plan to consolidate GM India's manufacturing at the Talegaon plant in Maharashtra."

It is a reflection of "the trust and commitment between the parties" and how "the company works collaboratively to resolve all issues in an amicable manner", he said.

Tushar Kamthe, General Motors Employee Union president, Talegaon, said the timely settlement will help drive quality and enhanced productivity which will be beneficial for all employees.

General Motors has decided to consolidate manufacturing in India at the Talegaon plant and stop production at its first plant at Halol in Gujarat from April 28. In January this year, SAIC Motor HK, part of China's SAIC Motor Corp, had received the Competition Commission's approval to acquire certain assets of the Halol plant.