Labour Unrest at Tata Motors Plant and

the Long-Term Wage Settlement

Agreement
o Index
 Tata Motors
 Industrial History of Tata Motor
 Abstract
 About Unrest
 Introduction
 Detailing Of Unrest
 Major Cause of Unrest
 Damaged Caused
 Method Of Resolution
 Conclusion
Tata Motors Limited is an Indian multinational automotive manufacturing company,
headquartered in Mumbai, Maharashtra which is part of Tata Group. The company produces
passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military
vehicles. Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group
entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-
Benz of Germany. After years of dominating the commercial vehicle market in India, Tata
Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a sport
utility vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata Estate
(1992; a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-
door SUV) and the Tata Safari (1998).

 Industrial History of Tata Motors in Brief

Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-made to suit
Indian consumer needs though styled by I.D.E.A, Italy. Although initially criticised by auto
analysts, its excellent fuel economy, powerful engine, and an aggressive marketing strategy
made it one of the best-selling cars in the history of the Indian automobile industries. A
newer version of the car, named Indica V2, was a major improvement over the previous
version and quickly became a mass favourite. Tata Motors also successfully exported large
numbers of the car to South Africa. The success of the Indica played a key role in the growth
of Tata Motors.

In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit,
Daewoo Commercial Vehicles Company, later renamed Tata Daewoo. On 27 September
2004, Ratan Tata, the Chairman of Tata Motors, rang the opening bell at the New York Stock
Exchange to mark the listing of Tata Motors. In 2005, Tata Motors acquired a 21%
controlling stake in the Spanish bus and coach manufacturer Hispano Carrocera. Tata Motors
continued its market area expansion through the introduction of new products such as buses
(Star bus and Globus, jointly developed with subsidiary Hispano Carrocera) and trucks
(Novus, jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marco polo, Tata Marco polo Bus,
to manufacture fully built buses and coaches. In 2008, Tata Motors acquired the English car
maker Jaguar Land Rover, manufacturer of the Jaguar and Land Rover from Ford Motor
Company. In May 2009, Tata unveiled the Tata World Truck range jointly developed with
Tata Daewoo; the range went on sale in South Korea, South Africa, the SAARC countries,
and the Middle East at the end of 2009Tata acquired full ownership of Hispano Carrocera in
2009. In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National
Quality Award. In 2010, Tata Motors acquired an 80% stake in the Italian design and
engineering company Trilix for €1.85 million. The acquisition formed part of the company's
plan to enhance its styling and design capabilities. In 2012, Tata Motors announced it would
invest around ₹6 billion in the development of Futuristic Infantry Combat Vehicles in
collaboration with DRDO. In 2013, Tata Motors announced it will sell in India, the first
vehicle in the world to run on compressed air (engines designed by the French company
MDI) and dubbed "Mini CAT". In 2014, Tata Motors introduced first Truck Racing
championship in India "T1 Prima Truck Racing Championship".

On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the
22nd floor to the fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend a
meeting of Tata Motors Thailand.

On November 2015, Tata Motors announced Lionel Messi as global brand ambassador at
New Delhi, to promote and endorse passenger vehicles globally.

On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as brand
ambassador for its commercial vehicles range.

On 8 March 2017, Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.

On 3 May 2018, Tata Motors announced that it sold its aerospace and defence business to
another Tata Group Entity, Tata Advanced Systems, to unlock their full potential

On 29 April 2019, Tata Motors announced a partnership with Nirma University in

Ahmedabad to provide a B.Tech. degree programme for employees of its Sanand plant.

On 24 March 2020, Tata Motors Ltd announced that it would spin off its passenger vehicles
arm as a separate unit within the company.
On 5 March 2021, Tata Motors’ shareholders approved hiving off its passenger vehicles
business into a separate entity.

On August 2021, as a complimentary reward for Indian Olympians who finished closed
fourth in Tokyo Olympics 2021 and missed the place for Bronze, the company planned to
recognise the efforts by gifting Altroz hatchback.

 A note on Tata motors

Tata motors was one of the top global manufacturers of utility vehicles defence vehicles
trucks cars and buses with operations in the UK Thailand Indonesia South Korea and South
Africa apart from India where was the top manufacturer of passenger and commercial
vehicles the company was the top manufacturer of passenger and commercial vehicles in
India Tata motors cater to the global markets in Africa Europe South Asia of America Russia
Australia, Southeast Asia and says the company has manufacturing plants at Sanand Gujarat
Karnataka ,Madhya Pradesh, Pune Maharashtra and Jamshedpur, Jharkhand turn on orders
were started in 1945 and was initially called Tata engineering and locomotive Company
Limited Telco company produced locomotives and engineering products in its initial days in
collaboration with Marshall Sun City 1948 the company started production of cement rollers
in 1948 medium commercial vehicles elaboration West Germany refer to exhibit a for the
timeline of Tata motors over the years with each passing year the company introduced
collaborations with global companies as a 2019. Tata motor has present 175 countries 8.5
million find globally for Tata motors had won numerous awards for excellence Alex and
marketing in 2018 it was awarded the national energy conservation work by the government
of India for its Jamshedpur plant in 2018.

 Abstract

The case ‘Labour Unrest at Tata Motors Plant and the Long-Term Wage Settlement
Agreement’ is about the long-term wage settlement agreement entered into between the
workers union and the management of Tata Motors at its Sanand Plant, Gujarat, on June 9,
2017. The long pending issue of a wage hike and the suspension of some of the workers due
to indiscipline provided the trigger for the flare-up and the strike by the employees. After a
long period of negotiations between the workers union, the management, and the
representatives of the Labour Department of Government of Gujarat, a long-term wage
settlement agreement was finally reached.

Tata motors over the years 2018 model 761,786 units of vehicles comprising passenger
vehicles utility vehicles by commercial vehicles and medium and heavy commercial vehicles
this was an increase of 12.7% over the 675,286 units sold in FY 2017.

Apart from the hike in wages, a performance linked bonus of ten percent of the total salary
was offered, which was on the basis of productivity of the employees, the safety of the plant
resources, and the quality of workmanship. Prior to the wage agreement at the Sanand Plant,
Tata Motors had settled the wage hike issue at its Pune Plant. In September 2019, Tata
Motors had entered into a long-term wage settlement agreement at its Jamshedpur plant and it
planned to implement long term wage settlement agreements at its other locations in
Dharwad, Pant Nagar, and Lucknow.

 About unrest

 Introduction

On June 9, 2017, Tata Motors Limited (Tata Motors) headquartered in Mumbai, India,
announced that it had signed a long-term wage settlement (LTS) agreement with the workers
union at its Sanand plant, Gujarat, India. The wage settlement agreement was for a period of
five years from October 2015 to September 2020 and the total wage package of Rs 16,000
per month for each permanent employee was to be uniformly distributed during the LTS
period. The wage agreement included a performance linked payment on the basis of
productivity of the employees, safety of the plant resources, and quality of workmanship.
Other benefits under the agreement were extension of canteen and transport facilities, and a
block closure of 24 days annually.
 Earlier in February 2016 the workers had gone on a flash strike seeking reinstatement of 28
employees suspended for misconduct the strike was also to press for their demands for an
increase in wages.

 Detailing of unrest

At a time when Tata Motors is set to roll out its new hatchback Tiago from Sanand plant in
Gujarat. On 22nd February 2016, 422 permanent workers went on flash sit-in strike
demanding reinstatement of the 28 suspended workers for serious misconduct, among the
other demands of union-formation and wage increases. Tata’s Sanand plant does not have a
trade union or politically-affiliated labour union so far. Deputy labour commissioner of
Ahmedabad zone, V.V Pandya, confirmed the situation at the plant. “The management has
taken a proactive stance, and is open to negotiations. However, since this is not a unionised
agitation, there is no institutional leader of the workers at the moment, thus making the
negotiations difficult,” Pandya clarified.

Pandya said average worker’s salary at the plant around Diwali was Rs 13,000-13,500 per
month. If this amount is raised to Rs 5,000 per month, they would be exempted from ESI
deductions. "Workers actually preferred the company-run health scheme over the ESI
scheme,” he said, adding that the company also in-principle agreed to implement the wage
hike. However, Pandya said, two workers were suspended by the company for agitating.
Recently, after an enquiry, the management decided not to take these workers back. This is
when the remaining workers protested, demanding re-instatement of the sacked employees.
On Monday, action was taken against 26 workers when they allegedly incited other workers
and damaged some property.

Gujarat labour department sent its team to the site on Monday night. On Tuesday morning,
some workers congregated and resorted to a tools-down strike. Around 2,500 employees
work at the Nano plant, including engineers, administrative and other staff. Pandya said about
550 employees work on the shop floor.
 While the Management team continued to make efforts to talk to the workmen on strike
and convince them to restore normalcy, plant operations were simultaneously continuing."
The conflict began around Diwali when a group of workers demanded pay hike so that they
could be exempted from the Employees’ State Insurance (ESI) deductions. Company sources,
however, indicated that there were no plans to not allow the workers to enter the premises on
Friday.

On March 2nd, the Gujarat labour department deemed the strike illegal, which gives the
company the legal right to retrench them, and in any case leaves them in a no-work-no-pay
situation. By March 5th, about 40 workers had resumed work, and the rest decided to
continue with the strike. After repeated talks, the company refused to reinstate suspended
workers. The workers sought to file a court case asking for a reversal of the labour
department's deeming of the strike illegal, the company moved court for an injunction to
prevent worker agitations. On the 12th March, 22 organizations, including trade unions, civil
society groups, a farmer's organization, and so on extended support to the workers. More
wisdom might soon arrive as a trade union representative has suggested calling Hardik Patel
and Kanhaiya Kumar for creating “state-wide stir” if workers' rights are not given.

Emerging out of the meeting, the workers (seven members) claimed that no consensus has
been reached. The company has not agreed to re-instate the suspended workers (nearly 28
have been suspended in phases), and the workers claimed they would resume work only
when their colleagues are taken back.

Interestingly, the seven workers were actively guided by a rank outsider who was present
at the location. Not dressed in a uniform, the person who identified himself as Vijay Panchal,
admitted that he was not an employee of Tata Motors, but was there to offer counsel to the
young workers who were frustrated with the company management. The company, on its
part, replied, "the company has no plans to withdraw suspensions that involve charges of
serious misconduct. It reiterated that indiscipline will not be tolerated and initiate an enquiry
against the said 26 workmen."

Another reason behind the discontent seemed to be the salaries, which are nearly Rs 12,500
per month (according to worker sources) and in the past few years, the hikes have definitely
not been handsome.

"The company keeps citing reasons like losses incurred and do not raise salaries by good
margins. The inflation hurts us, and nearby factories of Ford India pay better," Sinh said. He
feels the company does not wish them to form a union at the site, and its recent actions are
attempts to thwart the unionisation of the workers.

Company sources maintained that the other sites of Tata Motors have unions, and there
was no reason to not allow one at Sanand. Production at Sanand, however, has seen far below
the capacity at all times. Nearly 42,561 Nano cars were produced from January 2014 to
December 2015, against an installed capacity of 250,000 cars per annum. However, the
company has started making preparations to roll out its latest hatchback from Sanand, the
newly renamed Tiago.

The situation outside the factory gates was uncannily 'normal', with no trace of
sloganeering, or anything which hinted at an ongoing tiff between the workers and the
management. One could only see buses strategically parked inside the main gate of the site,
and locals indicated that the 'agitating' workers were barred from public view by the buses.
These workers were commuting to the site in company buses (as many as seventy buses ply
every day from different parts of the city to Sanand), and after their shifts, they were dropped
back home. They, however, have not reported to work since Monday, and while the company
claimed that production at the site was hardly affected, the workers claimed that practically
no production was happening at the site as almost the entire group of permanent workers
refrained from work. There are nearly 2,200 employees at the site, which includes
apprentices, and trainees from the Industrial Training Institutes (ITIs)

The company seems to be actively working on a Plan B to not let production at the site get
affected due the current unrest. Sources indicated that plans may be afoot to bring workers
from other sites of Tata Motors to keep the show on. Even government sources indicated that
it is easy for a company like Tata Motors to replace a few hundred workers if they mobilise
their human resources across the country. "These workers would then hardly stand a chance
to win their cause," said a source in the state government. In case of any untoward incident
happening on site or if talks fail, the state government may declare the strike illegal. "In that
case the company can retrench the striking workers. Worst still, if plagued by worker unrest,
it decides to follow the precedent of General Motors and shut down their plant. This would
put the livelihood of almost 7,000 people at stake; 2,000 odds at the Tata plant and nearly
5,000 at the vendor park; which essentially means at least 35,000 people (counting their
families) without a stable income," the official warned.
 In fact, in its press statement on Thursday, Tata Motors has indicated, "the company will
explore all possible options to continue its operations, peacefully and unhindered, if this
illegal strike continues."

Company sources, however, indicated that they expected the situation to return to normalcy
soon, as most workers who are staging a 'sit-in' at the site are actually willing to join back
work. As the company continues to engage with the workers, they hope to convince them to
resume work, however, they continue to remain firm on the question of re-instating the
suspended workers. Even as negotiations continue with the old workers, Tata Motors
continues to recruit. A handful of young men waiting outside the factory gates indicated that
there were fresh pass outs from the nearby ITIs, and that they had received interview calls on
Tuesday.

However, Pandya said, two workers were suspended by the company for agitating.
Recently, after an enquiry, the management decided not to take these workers back. This is
when the remaining workers protested, demanding re-instatement of the sacked employees.
On Monday, action was taken against 26 workers when they allegedly incited other workers
and damaged some property.

Gujarat labour department sent its team to the site on Monday night. On Tuesday morning,
some workers congregated and resorted to a tools-down strike. Around 2,500 employees
work at the Nano plant, including engineers, administrative and other staff. Pandya said about
550 employees work on the shop floor. The assistant labour commissioner and government
labour officer were trying to end the deadlock. Pandya said if negotiations do not yield results
within the next three days, the strike could be stretched further.

The company, on its part, said, “There have been continued agitations for further monetary
increases as well as protests against disciplinary actions against those instigating the
workmen, resulting in serious threat to company personnel as well as losses due to tampering.
viewed as attempts to coerce the Management, around 20 workmen have been suspended
(pending enquiry) on various charges of serious misconduct.”

A spokesperson said, “Tata Motors has enjoyed cordial relations with its workmen since start
of its operations in Sanand in 2010.” Around 42,561 Nano cars were produced from the
Sanand factory between January 2014 and December 2015, against the installed capacity of
250,000 cars per annum.
  Duration of unrest

Tata Motors said in a BSE filing on 23 March 2016 that the workers have called off the
strike and resumed duty and that normalcy has been restored at the Sanand plant.

The current protest comes close on the heels of Tata Motors signing a three-year wage
settlement agreement with its workers at the Pune factory on 30 March.

On 29 May, the matter related to the workers’ charter of demand (COD) was recommended
for referral by the conciliation officer. The workers’ union had also been asked to justify the
basis for wage hike in writing ahead of 8 June, when the next meeting of both parties with the
labour department officials is scheduled to take place, said a government official in the know
of the matter.

The stand-off between the Tata Motors management and the striking workers at its Nano car
factory in Sanand got cleared on Tuesday night after the intervention of senior bureaucrat
from the Gujarat government's labour department.

After an extensive consultation with Sanjay Prasad, Principal Secretary, Labour Department,
Government of Gujarat along with Tata Motors officials and other labour department
officials, the striking workers decided to call off nearly a month-long strike on Tuesday night.

The decision was taken after a marathon meeting between the workers’ representatives, top
management of Tata Motors and the Labour Department officials today.

Tata Motors stated that it will revoke the suspension of 13 out of 26 workers and will take
decision about the rest following completion of enquiries being conducted by the company.

Company said the enquiries initiated regarding all 26 workers will be completed within the
"reasonable time line" of 4-6 months, following which the workers' union will submit "a
reasonable charter of demand".
Workers' representatives said the strike has been settled with the management of the company
after 8-hour long meeting. "The company has agreed to recognise the union and begin
negotiations on wages and charter of demands that will be given to them by the workers in
the next 4-6 months. At the same time, the company will pay 75 pc of wages of the 13
workers who will remain suspended until enquiry is completed. Also, the company has
agreed that no action will be taken on strike," said Ashwin Roy, an adviser to the workers and
vice president of New Trade Union Initiative which supported the strike.

He said that decision on legality of suspension and wages for the period of the strike will be
taken by the court. Tata Motors had moved Ahmedabad Sessions Court for injunction on the
strike after the state Labour Department declared the strike illegal.

 Main role played in the unrest

1] A group of seven workmen,

2] Gajendra Chandel (Human Resources Management of Tata Motors)

3] V V Pandya (The Deputy labour commissioner of Ahmedabad zone)

4] Hitesh Rabari (President of Bhartiya kamdarekta Sangh)

 Major Causes of Unrest

In March 2017 the workers approached the Department of labour government of Gujarat to
assist in the negotiation process for the Tata motors management on March 3, 2017 tripartite
meeting was held between the workers union Tata motors representatives and labour
department officials in the presence of the Dhakka the labour Commissioner government of
Gujarat to seek a settlement to the wages of the workers attached Hitesh Rabari president of
Bhartiya Kamdra Ekta Sang labour union at Sanand said we have been placing our demands
before the management for the last 1 1/2 years now we want a definitive solution nine another
meeting was held on March 15, 2017 to discuss the issue and arrive at an amicable solution
the next meeting was fixed for March 29, 2017 with the labour commissioner government of
Gujarat and the company officials along with the workers union representatives Rabari said
this was our second meeting after March 3 in the presence of the deputy labour commissioner
and now the company has agreed to hold a continuous dialogue with us and arrive at an
amicable solution the company has not given any timeline friend believe that they will
resolve the issue before the next meeting with labour commissioner which is scheduled for
March 29.

Conciliation officer at Tata motors on May 29, 2017 recommended that the issue related to
the workers charter of demands be referred to the labour department simultaneously the
workers union was asked to submit in writing the justification and reasons for the increase.
We check 11 the workers had been negotiating with the management of Tata motors for a
period of 18 months for the support of the Department of labour government of Gujarat.
Eventually, in the first week of June 2017 the workers went on a symbolic strike by cutting
the company meals for one week and getting their lunch boxes from home the management
decided to resolve the issue and settle the matter by conducting negotiations with the workers
union a spokesperson for Tata motors said some workers have opted against the canteen
services and make the lunch arrangements through packs from home. The matter is under
conciliation and internal negotiations are on a daily basis the management is committed to
resolving this matter and the union 12 Tata motors was in favour of disbursing 50% of the
way check in the first year of the settlement. 2015 to 2020 that the workers union were
demanding disbursement of 67% of the wage hike in the first year of the settlement period.

 Damage caused

About 450 workers demanded higher amount of compensation during the first year of
long-term settlement wages and started boycotting canteen meals to claim that company
keeps the worker hungry. The workers’ union claimed that it had been negotiating with the
management for about 18 months now, but there was little progress for their LTS demand, as
a result of which they have resorted to this symbolic form of protest.

When Gujarat brought home the 'world's cheapest car' Nano, it could have hardly imagined
that there would come a time when worker unrest would reach such proportions, that 95 per
cent of its permanent workers at the Tata Motors' Sanand site would go on a strike against the
management. If things go out of hands, and the law-and-order situation is compromised, there
are chances that the state government may declare the strike illegal.

An on-ground review of the situation revealed that the discord between the workers and the
company management has almost reached a flash point, which could lead to unpleasant
situations any day at the site

"While the company has indicated that they would not allow us to stage a dharna inside the
premises, the government and police would not allow us to sit outside the gates in the Gujarat
Industrial Development Corporation's (GIDC) estate. Let's see how the situation moves
tomorrow," said Zhala Harpal Sinha, a worker at the site and a member of the seven-member
committee, hinting at a possible showdown at the site today.

Production at Sanand, however, has been far below the capacity at all times. Nearly 42,561
Nano cars were produced from January 2014 to December 2015, against an installed capacity
of 250,000 cars per annum.

However, the company has started making preparations to roll out its latest hatchback from
Sanand, the newly renamed Tiago. The situation outside the factory gates was uncannily
'normal', with no trace of sloganeering, or anything which hinted at an ongoing tiff between
the workers and the management. One could only see buses strategically parked inside the
main gate of the site, and locals indicated that the 'agitating' workers were barred from public
view by the buses. These workers were commuting to the site in company buses (as many as
seventy buses ply every day from different parts of the city to Sanand), and after their shifts,
they were dropped back home.

They, however, have not reported to work since Monday, and while the company claimed
that production at the site was hardly affected, the workers claimed that practically no
production was happening at the site as almost the entire group of permanent workers
refrained from work. There are nearly 2,200 employees at the site, which includes
apprentices, and trainees from the Industrial Training Institutes.

 Method of resolution

The union at Tata Motors was formed after about 300 workers went on a flash strike last year.
The workers demanded reinstatement of a few workers who had been suspended by the
company on charges of “misconduct". During the protests, some workers even vandalized
about 50 cars inside the plant. Tata Motors said in a BSE filing on 23 March 2016 that the
workers have called off the strike and resumed duty and that normalcy has been restored at
the Sanand plant. Sanand is one of Tata Motors’s six plants in India where the firm
manufactures the Nano small car and the Tiago hatchback. It has an annual production
capacity of 200,000 units. The union, recognized by the state’s labour department, has held
several meetings with the company management for wage hike and workers’ LTS since last
year.

In the first week of March this year, about 200 workers at the Sanand factory boycotted the
company’s transportation for returning home after work to protest against the company not
adhering to their demands for a wage hike. The current protest comes close on the heels of
Tata Motors signing a three-year wage settlement agreement with its workers at the Pune
factory on 30 March. The Sanand plant workers’ union was also expected to sign a similar
agreement with Tata Motors this month. The company has agreed to distribute 73% of the
wage hike in the first year of the settlement period (2015-2018) for Pune workers, according
to Rabari.

“But in our case, they have agreed to disburse only 50% in this period. We have demanded
that the company disburse at least 67% of the wage hike in the first year for the settlement
period spanning three years," said Rabari.

He said that while the current form of protest was peaceful, he was not sure how long the
workers would continue to do so before resorting to other methods, without elaborating
further.
“Some of the workers have opted not to use the canteen services and made their lunch
arrangements through lunch packs from their home. This was done to demand an earlier
settlement of the LTS. As you are aware, the LTS matter is under conciliation and internal
negotiations are also going on a daily basis. The management is committed to resolve this
matter and is in daily dialogues with the workmen & the union and is hopeful that good sense
will prevail," according to a Tata Motors’ spokesperson.

On 29 May, the matter related to the workers’ charter of demand (COD) was
recommended for referral by the conciliation officer. The workers’ union had also been asked
to justify the basis for wage hike in writing ahead of 8 June, when the next meeting of both
parties with the labour department officials is scheduled to take place, said a government
official in the know of the matter.

 Conclusion

Company sources, however, indicated that they expected the situation to return to normalcy
soon, as most workers who are staging a 'sit-in' at the site are actually willing to join back
work. As the company continues to engage with the workers, they hope to convince them to
resume work, however, they continue to remain firm on the question of re-instating the
suspended workers. When Gujarat brought home the 'world's cheapest car' Nano, it could
have hardly imagined that there would come a time when worker unrest would reach such
proportions, that 95 per cent of its permanent workers at the Tata Motors' Sanand site would
go on a strike against the management. The workmen have been asked to re-join their duties
or else the company will hire contract workers to replace them, advocate Nihil Mehta,
secretary of the Gujarat wing of Indian National Trade Union Congress. When asked if the
company plans to take legal action against the workers, a Tata Motors spokesperson said,
“The company will explore all possible options to continue its operations, peacefully and
unhindered, if this illegal strike continues”.

The company has failed to keep an active engagement with the workers and address their
concerns relating to various aspects, allege the workers' leaders. The company, on the other
hand, has agreed to discuss the reasonable demands of the workers with openness. The
Sanand plant has an installed capacity to manufacture 250,000 units annually. While the
company did not divulge the utilisation capacity at the plant, workers told FE that over 130
units are manufactured on a daily basis which has got reduced to half with the ongoing strike.

The long-brewing rift between Tata Motors Ltd and the workers at the company’s car
manufacturing plant in Sanand finally ended on Friday as the company signed a long-term wage
settlement (LTS). The LTS has been approved for five years with effect from 2015 till
September 2020. A day before, on Thursday, workers had called off their protest, wherein they
had stopped taking company-provided meals and instead decided to work on an empty stomach
through their shifts.

Each worker will get Rs 16,000, which will be spread across the LTS term uniformly. That
apart, the company will also give performance-linked reward at 10% of the total salary to the
employees, said a statement issued by the company.

Members of the workers union who were representing the wage-related woes of the workers
before the management finally agreed to call off the strike. “We are satisfied with the way the
company has addressed the issue and therefore, all the workers have resumed duties with effect
from Friday. The wage and distribution issues are also sorted out,” said Hitesh Rabari, president,
Bhartiya Kamdar Ekta Sangh, an organization recognized by the labour department. The
company has failed to keep an active engagement with the workers and address their
concerns relating to various aspects, allege the workers' leaders. The company, on the other
hand, has agreed to discuss the reasonable demands of the workers with openness.