Home >Companies >Tata Motors signs wage settlement pact with Sanand plant workers

New Delhi: Tata Motors on Friday resolved a long-pending wage settlement dispute by signing a pact with workers of its Sanand plant under which each permanent employee is to get Rs16,000 hike spread uniformally over the next 5 years.

There are around 500 permanent workers at the plant which rolls out Nano, Tiago, and compact sedan Tigor.

The long-term wage settlement (LTS) between the Tata Motors Sanand Union and Tata Motors was amicably agreed upon and has been signed for a period of 5 years with effect from October 2015 to September 2020, the company said in a statement. The total wage package allotted is Rs16,000 for each permanent worker and will be spread across the LTS term uniformly, it added.

In addition to the amount, the company said it has also introduced a performance-linked payment, which is accounted as 10% of total salary and will be linked to productivity, quality and 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," Tata Motors said.

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, it added.

“We have strived to resolve the LTS issue and today are delighted to have resolved the matter for a long term, ensuring our business operations’ competitiveness on one hand and taking care of the well-being of our shop-floor colleagues on the other," Tata Motors chief human resource officer Gajendra Chandel said.

Last year, around 300 workers at the Sanand plant had gone on flash strike to press for reinstatement of around 20 of their colleagues who have been suspended for serious misconduct.

There have been agitations at the plant for monetary increases as well as protests against disciplinary actions against those instigating the workmen, resulting in serious threat to company personnel as well as losses due to tampering. Tata Motors’ shares rose 1.4% to Rs467.20 on BSE.

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