Jamshedpur: Tata Steel management and Tata Workers� Union have agreed to stop the extension of service to the company employees beyond 60 years as per existing practice with effect from 1st July 2018. As per the agreement, it will be given strictly as per clause 56 of the Works Standing Order, said TWU president R Ravi Prasad at a press meet on Thursday.
According to the agreement, employees who will not get extension of service will be
compensated. In case the separating employee dies at any time within the lumpsum amount period, the remaining lumpsum amount shall be paid to the Joint Account holder till defined lumpsum amount period. Employees will be allowed to retain their existing Company accommodation allotted to them till 61 years and 3 months of their age at prevailing employee rate.
The agreement will remain in force for the next five years i.e. till 30th June 2023 and will be reviewed thereafter, said Prasad.
Suresh Dutt Tripathi, Vice President (HRM), Sandeep Dhir, Chief HRM Steel, Zubin Palia, Chief Group IR, R Ravi Prasad, President, TWU, Satish Kumar Singh, General Secretary, TWU, Arvind Kumar Pandey, Dy. President, TWU signed the agreement on behalf of the Management and Union respectively.
Compensation for employees not getting service extension
1st of the next month in which the employee attains Lumpsum Amount
61 years Rs 1,20,000
62 years Rs 1,32,000
63 years Rs 1,44,000
64 years Rs 1,56,000
65 years Rs 1,68,000