Tata Motors signs 5-year wage pact with Sanand workers

Tata Motors on Friday signed a long-term wage settlement (LTWS) with workers union at its Sanand plant in Gujarat, ending a negotiations that started more than one and a half years ago.

The pact signed on Friday is for a period of 5 years - from October 2015 to September 2020 – and is broadly in line with the three-year wage settlement signed earlier this year with the Pune Workers' Union (from September 2015 to August 2018) where a portion of workers' salaries is linked to their performance.

Under the wage pact, each permanant employee will get a Rs16,000 annual hike, which will be spread across the LTS term of five years uniformly, starting 2015. The hike comprises basic component, 40 per cent, and remaining 60 per cent in allowances.

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

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.

Speaking on the occasion, Gajendra Chandel, chief human resource officer, 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.''