Tata Motors just resolved a long-awaited dispute with Sanand plant workers. Tata Motors Sanand Union and Tata Motors recently agreed on a wage agreement. The long term wage settlement (LTS) is signed for 5 years with effect from October 2015 to September 2020. With the approval of this agreement, workers will now get Rs 16,000 hike in the salary. There are around 500 permanent workers at the plant which rolls out Nano, Tiago, and compact sedan Tigor.
Besides increasing the salary the company has also introduced performance-linked payment which will be accounted for 10 percent of total salary and will be linked to productivity, quality, and safety. Tata Motors said “This new measurement of performance has been well received by workmen. The annual bonus linked to performance covering all permanent workers was also agreed upon”.
Additionally, the company has also agreed on certain benefits like transportation, canteen facilities, rationalization of leave rules and block closure days up to 24 days per year.
While concluding the issue Tata Motors Chief Human Resource Officer said: “We have strived to resolve the LTS issue and today are delighted to have resolved the matter for a long term, ensuring our business operations’ competitiveness on one hand and taking care of the well-being of our shop-floor colleagues on the other”.