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Tata Motors signs MoS with union for grade revision of its employees

Settlement takes effect in the presence of DLC Jamshedpur

Jamshedpur: Tata Motors Limited signed a Memorandum of Settlement (MoS) for the grade revision of its eligible employees in the presence of its union leaders here on Monday. The settlement will be effective from 1st April 2016 to 31st March 2019.

The Memorandum of Settlement was signed in the presence of Deputy Labour Commissioner Rakesh Prasad. It was signed by Tata Motors plant head AB Lall, Ravi Singh, Deepak Kumar, Muri Sampat Kumar, Rakesh Pathak, Gurmeet Singh Tote, RK Singh and other union leaders. It was signed under Section 18 Sub Section 1 of Industrial Disputes Act 1947. Sources said the union leaders signed the Memorandum in the capacity of workmen due to a dispute existing between their various factions. The case related to the dispute is pending in the High Court and the verdict is expected soon, sources said.

The Settlement fixed benefit will be paid staggered in three years at the rate of 72%, 15% and 13% respectively. Fitment benefit of Rs.3600 will be given in Basic for permanent workmen. A hike of Rs 500 in Fixed Dearness Allowance as applicable will be given to the eligible employees.

As per the settlement, the minimum and maximum increment rates have been revised to Rs.150 and Rs.245 respectively. Hostel Allowance has been increased by Rs.250 per month as applicable. Uniform Maintenance Allowance has been increased by Rs.1400 per month as applicable. House Maintenance

Allowance has been hiked by Rs.500 as applicable. H.R.A will be paid as 10% of revised Basic Pay.

The existing Performance based payment scheme will be discontinued. An amount of Rs. 1600 under this scheme will be paid as Permanent Compensatory Allowance (PCA). The new variable pay has been introduced based on Productivity (MOP), which has a range from Rs. 3400 at 101-110 MOP band to Rs. 8700 at 351-360 MOP band. L.T.A will be 10% of pre-revised basic pay subject to a minimum Rs. 1000 per month. The Special Allowance (Bonus Type) has been revised for the Permanent Operatives in Direct Mfg-Production from Rs 1000 Rs 1800.

The length of service required for the ward registration has been reduced from 10 years to 5 years. Group insurance policy will be introduced to mitigate the hardship of deceased family of permanent workmen. Leave bank will be introduced to help cases of long sickness of the permanent employees. Weekly off will not get sandwiched in the case of availing casual leave. Rationalization of shifts will be implemented immediately.

Encashment of available balance of sick leave will be given in case of death of permanent workmen. The settlement benefit including direct and indirect is minimum of Rs 7057 per month, maximum of Rs.8563 per month and variable pay in form of MOP will be paid monthly as per attachment. Seva Nidhi Contribution increased to Half Day Basic Salary in place of Rs 5, the company spokesperson said.

Union sources said that this time, not a single temporary worker was regularized under the grade revision agreement. Earlier, temporary employees have been regularized as a result of grade revision agreements. Employees expect regularization along with bonus agreement, sources claimed. In 2010, 270 temporaries were regularized after grade revision. In 2013, 250 employees were made permanent, sources said.

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