Tata Steel Signs Landmark Agreement with Tata Workers' Union on Extension of Service
Tata Steel has always been a pioneer in introducing initiatives and policies for the welfare of its employee. The tradition of working together has been a key pillar in achieving industrial harmony of 90 years. In line with the culture of continuous improvement, collaborative working and taking into account the business imperatives, the Tata Steel Management and the Tata Workers’ Union agreed that extension of service beyond 60 years as per existing practice would be stopped w.e.f 1st July’2018 and henceforth it will be given strictly as per clause 56 of the Works Standing Order.
The salient features of the agreement are as follows:
- Aligned to the Tata philosophy, employees who will not get extension of service will be compensated as follows:
1st of the next month in which the employee attains Lumpsum Amount 61 years Rs 1,20,000 62 years Rs 1,32,000 63 years Rs 1,44,000 64 years Rs 1,56,000 65 years Rs 1,68,000
- In case the separating employee dies at any time within the lumpsum amount period, the remaining lumpsum amount shall be paid to the Joint Account holder till defined lumpsum amount period as mentioned above
- Employees will be allowed to retain their existing Company accommodation allotted to them till 61 years and 3 months of their age at prevailing employee rate.
- The above agreement will remain in force for the next five years i.e. till 30th June 2023 and will be reviewed thereafter.
Mr. Suresh Dutt Tripathi, Vice President (HRM), Mr. Sandeep Dhir, Chief HRM Steel, Mr. Zubin Palia, Chief Group IR, Mr. R Ravi Prasad, President, TWU, Mr. Satish Kumar Singh, General Secretary, TWU, Mr. Arvind Kumar Pandey, Dy. President, TWU signed the agreement on behalf of the Management and Union respectively at Jamshedpur on 28th June 2018.
About Tata Steel
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27 million tonnes per annum (MTPA) as on March 31, 2018. It is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Group recorded a consolidated turnover of US $20.41 billion (INR 133,016 crore) in FY18. Tata Steel Group is spread across five continents with an employee base of nearly 74,000. Tata Steel retained Industry Leader position in FY18 and ranked second overall in the DJSI assessment, 2017. The Company has been recognised as the Climate Disclosure Leader in ‘Steel category’ by CDP (2017). Besides being a member of the World Steel Climate Action Programme, Tata Steel was felicitated with several awards including the Prime Minister’s Trophy for the best performing integrated steel plant for 2014-15 and 2015-16, Best Risk Management by CNBC TV18 (2018) and ‘Corporate Strategy Award’ by Mint (2018). The Company also received the ‘Most Ethical Company’ award from Ethisphere Institute for the sixth time (2018), Steel Sustainability Champions (2017) by the World Steel Association, Dun & Bradstreet Corporate Awards (2017 & 2018), Golden Peacock HR Excellence Award by Institute of Directors (2017) as well as 'Asia's Best Integrated Report' award by the Asia Sustainability Reporting Awards (2017), among several others.
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