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Abstract

The case 'Labor Unrest at Tata Motors Plant and the Long Term Wage Settlement Agreement' is about the long-term wage settlement agreement entered into between the workers union and the management of Tata Motors at its Sanand Plant, Gujarat, on June 9, 2017. The reason for the strike by the workers is described in detail. The long pending issue of a wage hike and the suspension of some of the workers due to indiscipline provided the trigger for the flare-up and the strike by the employees. After a long period of negotiations between the workers union, the management, and the representatives of the Labor Department of Government of Gujarat, a long term wage settlement agreement was finally reached. Apart from the hike in wages, a performance linked bonus of ten percent of the total salary was offered, which was on the basis of productivity of the employees, the safety of the plant resources, and the quality of workmanship. Prior to the wage agreement at the Sanand Plant, Tata Motors had settled the wage hike issue at its Pune Plant. In September 2019, Tata Motors had entered into a long term wage settlement agreement at its Jamshedpur plant and it planned to implement long term wage settlement agreements at its other locations in Dharwad, Pantnagar, and Lucknow.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Time period

The events covered by this case took place in 2016-2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Tata Motors
Employees:
10000+
Turnover:
USD 42 billion (2019)
Type:
Public company
Industry:
Automotive

About

Abstract

The case 'Labor Unrest at Tata Motors Plant and the Long Term Wage Settlement Agreement' is about the long-term wage settlement agreement entered into between the workers union and the management of Tata Motors at its Sanand Plant, Gujarat, on June 9, 2017. The reason for the strike by the workers is described in detail. The long pending issue of a wage hike and the suspension of some of the workers due to indiscipline provided the trigger for the flare-up and the strike by the employees. After a long period of negotiations between the workers union, the management, and the representatives of the Labor Department of Government of Gujarat, a long term wage settlement agreement was finally reached. Apart from the hike in wages, a performance linked bonus of ten percent of the total salary was offered, which was on the basis of productivity of the employees, the safety of the plant resources, and the quality of workmanship. Prior to the wage agreement at the Sanand Plant, Tata Motors had settled the wage hike issue at its Pune Plant. In September 2019, Tata Motors had entered into a long term wage settlement agreement at its Jamshedpur plant and it planned to implement long term wage settlement agreements at its other locations in Dharwad, Pantnagar, and Lucknow.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Settings

Time period

The events covered by this case took place in 2016-2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Tata Motors
Employees:
10000+
Turnover:
USD 42 billion (2019)
Type:
Public company
Industry:
Automotive

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