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The unrestrained hike in wage bills year after year is steadily eroding National Aluminium Company's (Nalco) competitive edge in metal production.A research report by brokerage firm Motilal Oswal shows employee wages now account for more than $500 per tonne in the cost of aluminium production, the highest in the world. Although Nalco's total headcount had subsided two per cent to 6776 at the end of 2017-18, average recurring annual wages per employee still climbed 32 per cent to Rs 2.9 million- the report dubs it as the highest in the Indian metal and mining industry. Wages are eroding the navratna company's strategic advantages despite its attractive valuations, the report commented.Nalco's average cost of metal production moved up by 10 per cent in last fiscal to $2187 (or Rs 140,999) per tonne. Variable costs and wage hikes were the key drivers to the hike in production costs besides input commodity inflation fuelled by rise in alumina and carbon prices. Though Nalco could cut its .

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