Sanand (Ahmedabad), August 21, 2021: A long-term wage settlement (LTS) between the Tata Motors Sanand Union and Tata Motors was amicably agreed upon and signed today for a period of 3-years from August 2021 to July 2024. The existing settlement was valid till September 2020.
The total wage package allotted is Rs. 8800/- for 3 years with 62%, 20% & 18% amount accruing every year. A special additional increase of Rs. 1800/- is also extended in the same proportion. Despite a challenging business situation in the past, the company has also provided an increment for the past 10 months on the request of the union.
The company has introduced a new performance linked scheme, based on global parameters of HPeV (Hours Per Equivalent Vehicle), quality & safety. This new measurement of performance has been well received by union. The Annual Bonus linked to plant performance covering all permanent workers was also agreed upon. The SDT (Self Directed Teams) concept ownership by the workmen was major highlight of this settlement.
Additionally, other benefits like housing loan subsidy, amenity loan and other facilities, like block closure days up to 30 days per year were mutually agreed.
Speaking on the occasion, Mr. Ravindra Kumar G.P., President & Chief Human Resources Officer, Tata Motors said, “Tata Motors shares cordial working relationship with workers and members of its internal Union. We have signed the second long term wage settlement at Sanand plant. I would like to thank all the workers for their continual support and patience. They have been very co-operative and have supported the Company during this pandemic time. We aim to achieve higher and challenging productivity levels with the launch of new HPeV based productivity scheme. The union is very supportive and forward looking in terms of long term welfare of the workmen and at the same time warranting and supporting gains for the company in terms of productivity, quality and safety through this wage settlement. I personally congratulate all who were involved in this settlement.”