ABHINAV TUSHANT

1018002

TATA Steel Tube Division It was established as India Tube Company on the 17th.

December 1954, a joint venture between Tata Steel and Stewarts & Lloyds of UK in Jamshedpur.

In 1985, it merged with TATA Steel to be one of its seven Strategic Business Unit (SBU).

It is a leading manufacturer of welded pipes and tubes in the country with an annual production capacity of around 4,00,000 tones and the annual turnover of Rs 2,250 Cr.

It was employing 850 employees in FY 13-14.

It Produces: 1) Commercial Tubes and 2) Precision Tubes

CaseOn July 2014, when Management and Tata Workers Union (TWU)

having Collective Bargaining meetings on Wage Revision which was due from 28 months.

TWU was demanding approximately 20% hike in wagesOn August 2014, the environment in company was going bad and

than Management looked the effect of this hike on all business of Tata Steel.

Management came with a proposal of retrenchment or surplusing 340 employees of TUBE DIVISION as an Tool for Bargaining.

The process end with a result of 20% hike of Payment of Non-Officers and about 175 employees were declared surplus with being in Service Pool and trying to place them in the vacancies as their skills.

Reason

1. Tube Division has profit of 5 Cores in current FY 13-14 which will turn in loss after 20% hike of salary. Tube division of Tata Steel pays its employee highest in India as they are paid in equal to steel employees of Tata Steel.

2. Some of jobs were planned to automated from past.

3. The labor productivity was low as compared to competitors.

4. Outsourcing of less skilled jobs are every cost effective.

Affect of AgreementAfter an agreement between Management and Union in which both

agrees on making employees surplus on basis:Less employment left.Majorly less skilled job like Canteen, Drivers, High Pay Securities

etcAll Surplus employees will report to service pool and then they

were able to go to different departments as per vacancies and their skills in Steel works.

Employee will be having option of taking Early Separation Scheme (ESS) and Naukri chooro & Naukri Pao Scheme.

More than 80% were placed in different department.

REFERENCE