Jamshedpur: Preparations are underway at Tata Steel to conclude the long-pending wage revision agreement by March, with negotiations between the management and the Tata Workers’ Union intensifying over the past few days.
Talks were held recently between Tata Steel’s HRM officials and Tata Workers’ Union leaders, including union president Sanjeev Chaudhary Tunnu, general secretary Satish Singh, and deputy president Shailesh Singh. The discussions, which lasted nearly two hours, reportedly remained on a constructive track, though key differences persist.
Management Cites Challenges, Union Flags Inflation
During the talks, the management highlighted prevailing economic challenges and stressed the need to factor in productivity concerns. Union leaders, however, countered the argument by pointing to rising inflation and increasing cost of living, insisting that both NS-grade and steel-grade employees must receive proportionate and meaningful wage hikes.
Productivity and Manpower Right-Sizing Raised
Management officials flagged low productivity levels at the Jamshedpur plant, stating that improvements are essential for long-term sustainability. They proposed linking wage increases with productivity enhancement measures and also discussed manpower right-sizing as part of the broader wage revision framework.
Proposal for Higher MGB, Longer Wage Agreement
According to sources, Tata Steel has proposed an increase in the Minimum Guaranteed Benefit (MGB) along with a longer seven-year wage revision agreement. However, the union has expressed strong reservations over this proposal.
It is learnt that the management has suggested an average MGB increase of around Rs 10,000 for steel-grade employees, while proposing an average hike of Rs 8,000 to Rs 9,000 for NS-grade employees. At the same time, the company is pressing for a seven-year wage agreement instead of the shorter duration traditionally favoured by the union.
Union Concerns Over Potential Losses
Union sources cautioned that accepting the management’s proposal could result in long-term losses for employees, as a relatively lower MGB spread over a longer agreement period may dilute the overall financial benefit. The union has reportedly opposed extending the wage revision period and is demanding better safeguards for workers’ earnings.
Negotiations are expected to continue in the coming days as both sides work toward reaching a consensus before the March deadline, with the wage revision outcome being closely watched by thousands of Tata Steel employees in Jamshedpur.
