Mail News Service

Jamshedpur, August 23: Tata Steel Limited and the Rashtriya Colliery Mazdoor Union (RCMU) have finalized a Memorandum of Settlement regarding wage revisions and related matters for workers and supervisors at Jharia and West Bokaro Collieries. The agreement, effective from July 1, 2022, will last for seven years, until June 30, 2029.

Key features of the settlement include a Minimum Guaranteed Benefit (MGB) of 13% on emoluments, including Basic Pay, Dearness Allowance, Attendance Bonus, and Special Dearness Allowance, as of June 30, 2022. This benefit will range from Rs 4,102 for the lowest paid employees to Rs 18,102 for those with the highest Basic salary. Two additional increments are also planned—one in August 2024 and another in July 2028—provided employees remain with the company.

The revised wages show significant increases for both monthly and daily-rated grades. For instance, the minimum monthly wage for the lowest grade (T&S- “H”) will rise from Rs 21,005 to Rs 32,720, while the highest grade (T&S- “A-1”) will see an increase from Rs 37,225 to Rs 57,985. Daily-rated workers will experience similar enhancements, with minimum daily wages rising from Rs 787.5 to Rs 1,226.73.

The rates of increment will continue at 3% of the revised basic salary or grade maximum, whichever is lower. Dearness Allowance will be adjusted based on changes in the All India Average Consumer Price Index (AIACPI) over a base index of 8242.

For the new series of grades, the Minimum Guaranteed Benefit will range from Rs 4,102 to Rs 7,458. The revised rates for increments will be increased to a minimum of Rs 520 and a maximum of Rs 770 per month. The agreement also includes revised allowances, such as House Rent Allowance and Gas Allowance, with increases reflecting updated rates.

The settlement, covering 4,042 employees across both old and new series, was signed in Jamshedpur on August 23, 2024, by T.V. Narendran, CEO & MD of Tata Steel, and Kumar Jaimangal, President of RCMU, among other senior executives and union representatives.

The salient features of the settlement are as follows.

1. Period of Operation– The period of operation of Settlement is 7 (seven) years from 01-07-2022 to 30-06-2029.

Old Series of Grades

2. Minimum Guaranteed Benefit (Old Series)-

An MGB of 13% on the emoluments comprising of Basic Pay, Dearness Allowance, Attendance Bonus and Special Dearness Allowance as on 30-06-2022 has been agreed.

The Minimum Guaranteed Benefit as on 1st July 2022, to the lowest paid employee will be Rs 4102/- and to the employee with highest Basic salary as on 1st July 2022 will be Rs 18102/-.

Two additional Increments – First additional increment on 01.08.2024 to employees who are on the rolls on 31.07.2024 and continue to be on the rolls as on 01.08.2024 and second additional increment on 01.07.2028 to employees who are on the rolls on 30.06.2028 and continue to be on the rolls as on 01.07.2028 will be given in their respective grade. This additional increment will be in addition to their normal anniversary increment.

3. Revised Wages (Old Series)- The minimum and maximum wages revised for the lowest and highest grades as on 01-07-2022 would be as under:

4.      Rates of Increment (Old Series) –

Will continue to be @ 3% of the revised basic salary of the employee or @3% of the revised grade maximum whichever is lower. The existing and revised rate of increment in the lowest workmen and highest supervisory grade would be as follows:

5.    Dearness Allowance (Old Series)-

It is agreed to continue to pay Variable Dearness Allowance (VDA) to the employees as per existing norms. The Variable Dearness Allowance w.e.f. 01.07.2022 will be revised based on changes in AIACPI over base index 8242 (Base 1960=100). The DA at All India Average Consumer Price Index (AIACPI) 8242 (1960=100) is nil as on 01.07.2022.

New Series of Grades

6. Minimum Guaranteed Benefit (New Series)-

Minimum Guaranteed Benefit in the basic pay with effect from 1^st July 2022 will be as per the pre- revised basic slabs ranging from Rs 4102 to Rs 7458.

Two additional Increments – First additional increment on 01.08.2024 to employees who are on the rolls on 31.07.2024 and continue to be on the rolls as on 01.08.2024 and second additional increment on 01.07.2028 to employees who are on the rolls on 30.06.2028 and continue to be on the rolls as on 01.07.2028 will be given in their respective grade. This additional increment will be in addition to their normal anniversary increment.

7. Revised Minimum Wage (New Series)- The minimum wage revised for the various entry grades as on 01-07-2022 would be as under: –

8. Rates of Increment (New Series) – The rates of increment have been revised and the Min & Max rates of increments are as follows: –

9.    Dearness Allowance (New Series)-

To continue at Rs 3/- per point of increase in AIACPI over the base Index of 8242 (Base 1960=100).

Allowances

* HRA of West Bokaro revised separately

10.     Positional Allowance (West Bokaro)

The existing positional allowance of Rs. 1500/- pm being paid to such employees of West Bokaro, in the designation of Sr. Mining Associate and Mining Associate operating the following equipment’s – Dumper, Dozer/Grader, Drill Machine and Loading Equipment is being revised to Rs 2100/- per month

w.e.f. 1st August 2024, subject to actual attendance in a month. They will be paid this positional allowance till such time they occupy the positions to operate the above-mentioned equipment at West Bokaro.

11. This agreement covers a total of 4042 employees (2404 employees in old series and 1638 employees in new series) as on 1.7.2022 at West Bokaro and Jharia Division.