Memoranda of Settlement dated 1st November 2008 has been signed between the Steel Company and the Tata Workers’ Union for wage revision and other allied matters for employees of Jamshedpur Organisation including Tubes Division covering the workmen and the supervisors who were covered by earlier Settlements dated 17-12-2001.

The salient features of the Settlement are as follows:

1. 1) Period of Operation - The period of operation of settlement for 10 years from 1.1.2007 to 31.12.2016
2. 2) Revised minimum wage- The revised minimum wage for the lowest paid employees as on 1-1-2007 would be as under -

3) Rates of Increment – The existing flat rate of increment will revised to be on a percent basis @ 3% of the basic salary of the employee on a cumulative basis subject to a maximum of 3% of basic salary at the maximum of the respective grade. The existing and revised rate of increment in the lowest workmen and highest supervisory grade would be as follows:

4) Minimum and Maximum Basic salary in grade
Minimum basic of the lowest workmen grade (R-1) increased from Rs.4000/- to Rs. 8080/- p.m.

Maximum basic of the highest supervisory grade (N-20) increased from Rs.13650/- to Rs 22810/- pm

5) Minimum Guaranteed Benefit
Minimum guaranteed benefit per month in the basic salary of each employee – 33% (Thirty three percent) of the Basic salary of the employee as on 31.12.2006

6) Minimum and Maximum Benefit
Minimum benefit to lowest paid employee in the minimum of the lowest workmen grade (R-1) will be Rs. 1890/- per month

Maximum benefit to highest paid supervisory employee at the maximum of the highest grade (N-20) will be Rs. 6060/- per month

7) Dearness Allowance – To continue at 100% neutralization. The DA at All India avg. Consumer Price Index (AIACPI) 2884 (1960=100) is nil as on 1.1.2007 and as on 1-11-08 DA is 12.9% of the basic salary at AIACPI 3257.

8) House Rent Allowance benefit – The minimum house rent allowance increased from Rs 210/- pm to Rs 400/- pm.

Mr B Muthuraman MD Tata Steel and Mr Raghunath Pandey, President, TWU and senior executives of the Company and union office bearers signed the Settlement in the Board room at Jamshedpur in the presence of Conciliation Officer and Dy.Labour Commissioner, Jamshedpur.

In a joint communiqué by the Managing Director and President, Tata Workers’ Union, all the employees are being informed about the wage revision.