Tata Motors resolves long-term wage settlement issue with Sanand workers union

The agreement signed between Tata Motors Sanand Union and Tata Motors on Friday, for a period of 5 years will be with effect from October 2015 to September 2020.

By: Express News Service | Ahmedabad | Published:June 9, 2017 8:12 pm
Tata Motors, Sanand workers union, Sanand Tata Motors, Sanand Tata Motors union, business news The agreement signed between Tata Motors Sanand Union and Tata Motors on Friday, for a period of 5 years will be with effect from October 2015 to September 2020. (File Photo)

Just a day after Tata Motors Sanand plant workers ended their week-long boycott of company meals talks progressed with Tata Motors officials, on Friday both parties agreed on and signed a long-term wage settlement (LTS ) for a period of 5 years, thereby ending an 18-month long negotiation process.

The agreement signed between Tata Motors Sanand Union and Tata Motors on Friday, for a period of 5 years will be with effect from October 2015 to September 2020. The total wage package allotted is Rs 16,000 and will be spread across the LTS term uniformly. In addition to the amount, the company has also introduced a performance-linked payment, which is accounted for 10 per cent of the total salary and will be linked to productivity, quality and safety.

Speaking to the paper, Hitesh Rabari, President of workers’ union – Bharatiya Kamdar Ekta Sangh Sanand (BKSS) that has close to 450 members said, “We have had several meetings this week with Tata officials and finally resolved our wage hike issue amicably. We are also slated to get the arrears of last 18 months, while the Rs 16,000 hike will be distributed evenly in a period of 5 years. Apart from that 10 per cent performance, linked schemes have been added to our CTC. The agreement is till 2020, post which we would need to revise the agreement. While we had been in agreement in most other issues, only the distribution had remained a bone of contention which is now resolved.”

The workers’ union BKSS that came out of a workers’ agitation for wage hike and other demands last February, had been negotiating with the Tata management with aid from the labour department since the past 18 months. Around 450 workers of the BKSS union who had boycotted company meals since a week called off the boycott of company meals on Thursday morning.

A statement issued by the company on Friday evening cited, “The long-term wage settlement (LTS) between the Tata Motors Sanand Union and Tata Motors was amicably agreed upon and has been signed today for a period of 5 years, w.e.f October 2015 to September 2020. The total wage package allotted is Rs. 16,000/- and will be spread across the LTS term uniformly. In addition to the amount, the company has also introduced a performance-linked payment, which is accounted for 10 per cent of total salary and will be linked to productivity, quality & safety. This new measurement of performance has been well received by workmen.

The Annual Bonus linked to performance covering all permanent workers was also agreed upon. Additionally, other benefits like Transport and Canteen facilities and various other facilities, like rationalisation of leave rules and block closure days up to 24 days per year were mutually agreed.”

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