As on 31.03.2004, Tata Steel had a total permanent workforce of 42,511. The break up is furnished in the box. In addition, there were approximately 10696 contractor employees and 815 temporary employees working at various sites including the one million tonne expansion project is being implemented.

LA2 JOB CREATION

Tata Steel had 43,248 employees on its roll as on 31.03.2003 that has come down to 42,511 as on 31.03.2004 as Tata Steel is seriously attempting to reduce its labour cost, which is currently 13% of the turnover. The temporary work force has increased from 614 to 815 and contract labour from 10,522 to 10,696. However, with the increased production, Tata Steel has created indirect employment in the area of transportation, which we have not been able to capture. In addition, due to outsourcing of various activity, in operational areas and 1 million tonne expansion project, there had been an increase in the employment by contractors & suppliers.

LA12 Employee benefits

The benefits given to employees beyond those legally mandated are summarized below and also presented in the box. The steel company has spent a sum of Rs.322.37 Million on medical services and Rs.105.802 Million on educational facilities for the employees and their families in the reporting period compared to Rs.307.10 Million on medical services and Rs.139.4 Million on educational facilities for the employees and their families during the year 02-03.

• Employee Family Benefit Scheme: In case of untimely death of the employee during his service period, if his/her heir or nominee leaves his Provident Fund & Gratuity with the company, a monthly pension equal to the amount of last drawn salary of the deceased is given to the nominee till the time the employee would have attained 60 years of age.
• Family Benefit Scheme: In case of fatality in the Works, monthly pension equal to the amount of last drawn salary of the deceased is given to the legal heir till the time the deceased would have attained the age of 60.
• 15 days yearly special leave for women executives, with children of less than 5 years of age to take care of their children, in case of sickness.
• Basic Plant training of 18 months with stipend to employees’ ward to enhance their employability.
• Early Separation Scheme: A monthly pension of 1 time/1.25 times of an employee’s salary depending upon his age and length of service till the time the employee would have attained the age of 60.