Tata Motors resolves the Sanand plant wage settlement issue

Automobile giant Tata Motors' long pending wage settlement dispute finally saw the dawn of the day with a reconciliation with the Tata Motors Sanand Union on June 9, 2017. Consequentially, the agreement signed by the company with its Sanand plant workers granted each permanent employee a wage hike of Rs 16,000, to be realised uniformly over the next five years. 

The long term wage settlement agreement between Tata Motors and Tata Motors Sanand Union, signed affably. is applicable for a period of five years, effective from October 2015 to September 2020. The plant employees about 500 permanent workers, manufacturing a string of cars including Nano, Tiago, and compact sedan Tigor. 
   
In addition to the long term wage settlement, the company launched another initiative promoting performance-linked payment, which will be accounted as 10 per cent of the total salary of the employees. While the performance evaluation will be done from the purview of productivity, quality and safety. 

The company known for its philanthropist ideals, will also be providing more benefits including transport and canteen facilities, rationalisation of leave rules, block closure days up to 24 days every year, among many other incentives. 
  
In the previous year, the company's Sanand plant witnessed a flash strike from nearly 300 workers, demanding a reinstatement of 20 of their colleagues who had been suspended on account of serious misconduct. 

The plant has been testimony to several controversies including agitation by workers for monetary increases as well as outcry against disciplinary actions against the personnel plotting the revolts.
    
The BSE auto index closed at 24490.81 level on June 9, 2017. While Maruti was the top gainer in the sector, up by 3 per cent; Tata Motors closed at Rs 467.20, up by 1.4 per cent on the BSE. Mostly the auto sector closed flat, with the Sensex ending at 31,262.06 level, up by 0.16 per cent on June 9.