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Tata Steel Management and Union sign progressive World Class Maintenance concept

Jamshedpur, May 27, 2016

Tata Steel Management and the Union signed an Agreement dated May 27, 2016 for implementation of the World Class Maintenance concept.

The salient features of the Agreement are as follows:

  1. The Capacity of Jamshedpur Steel Works has been planned to increase to 11 MTPA. In order to cater effectively to the production plans, we need a high order of equipment availability to help in achieving the production targets. Accordingly, the existing maintenance departments/sections are needed to be reorganized on lines of World Class Maintenance (WCM) concept to improve its maintenance practices, to meet the maintenance complexities that the Company’s growth plans necessitate and to achieve the following:

    1. Develop expertise and standardisation of maintenance practices.
    2. Develop employees’ skill and expertise.
    3. Provide development opportunity to employees.
    4. Flexible and efficient utilisation of resource.
    5. Effective inventory management.
    6. Enhance equipment availability and reliability.

  2. The Maintenance Division, a part of Shared Services Division, will be configured into Area and Field Groups.
  3. The employees who are going to retire in next 2 (two) years from the date of this agreement will be allowed to continue to work in their respective departments.
  4. The movement of employees from Area to Field will take place through a combination of Advertisement and transfer.
  5. Reorganisation Benefit:
    Field Maintenance: All employees who were on the rolls of the Company as on 1.1.2016 and continue to be on the rolls on the date of signing of this agreement will be entitled for benefit on account of this Reorganisation .
    Area Maintenance: Employees working in positions where the agreed numbers have been arrived at by considering and resulting in increase in workload or working with less manpower or higher requirement of skills will be entitled for benefit on account of this Reorganisation
  6. The Incentive Bonus of employees who will be transferred from Area to Field will be protected as per existing norms.
  7. Merely as a consequence of the implementation of this Agreement, any facility, privilege,benefit, monetary or otherwise to which any employee might be entitled by way of provisions of previous Agreements/ Settlements shall not be withdrawn, reduced or curtailed except to the extent and manner as provided for in this Agreement.
  8. Along with the agreement on World Class Maintenance, a separate agreement on revising the amount to be added in Basic salary on account of Reorganisation/ Rationalization of workforce was also signed with the Union.