Tata Motors Resolves Long-Term Wage Settlement Issue At Sanand Plant

Tata Motors and the Tata Motors Sanand Union have come to an agreement over the long-term wage settlement (LTS), the company has said in a statement. Both parties involved have signed an agreement for a period of five years, with effect from October 2015 to September 2020. The automaker's total wage package allotted is Rs. 16,000 and will be spread across the long-term wage settlement term uniformly.

In addition to the amount, Tata Motors has also introduced a performance linked payment, which is accounted as 10 per cent of the 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.

Additionally, benefits including transport and canteen facilities, along with other facilities like rationalisation of leave rules and block closure days up to 24 days per year were mutually agreed as part of the settlement.

Speaking on the decision, Tata Motors - Chief Human Resource Officer, Gajendra Chandel said, "Tata Motors shares cordial working relationships with workers and members of its internal Union. 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. I would like to thank all the workers for their incessant support. They have been very co-operative and have supported the company at all times. Moreover, the Union which has been recently formed, is very supportive in ensuring workmen derive maximum benefits through this wage settlement. In the true spirit of the Tata culture, I personally urge all the workers to follow suit."