The Settlement was signed by Mr B Muthuraman, Managing Director, Tata Steel, Mr H M Nerurkar, Chief Operating Officer, Tata Steel and Mr Raghunath Pandey, President, Tata Workers' Union and senior officials of the Company and the Union.

Based on the Settlement, a monthly amount of Interim Relief will be paid to the employees of Steel Works and Tubes Division pending finalization of wage revision. The following are the salient features of the settlement - The Settlement shall cover all permanent employees (workers and supervisors) of the Company at Jamshedpur, including Tubes Division, covered by the Memoranda of Settlement dated 17-12-2001 who were on the rolls of the Company as on 31-12-2006 and continue to be on the rolls as on the date of this Settlement. This also covers the employees who were appointed on the permanent rolls after 31-12-2006 and are also on the permanent rolls as on the date of this Settlement.

The aforementioned category of employees will be paid the following Interim Relief and an Adhoc amount towards increment, depending on their respective basic salary as on 31-12-2006, on monthly basis with effect from 1st January 2007:

The Interim Relief amount and the Adhoc amount towards Increment will also be considered for Provident Fund, and Tisco Employees’ Pension Scheme (TEPS). However, it will not be counted for any other purposes viz. Gratuity, leave encashment, annual bonus, HRA etc.

It will not be paid for the duration of leave without pay/unauthorized absence or suspension from duty.

The Charter of Demands submitted by the Union to the Company for wage settlement, will be discussed and finalised between the Company and the Union within four months from the date of this settlement.

In case the wage settlement does not take place early, the eligible employees who would be on the rolls of the Company as on 1st July 2008 would be paid an additional Adhoc amount towards Increment with effect from 1-1-2008 as indicated in column (3) of the Table above taking into consideration the basic salary of the employees as on 31-12-2006.

If the NJCS commences payment of monthly interim relief better than us, before the finalization of the settlement, the issue of the amount of monthly interim relief to the employees would be discussed again with the Union.