The salient features of the settlement are as follows:
1) The new wage structure shall be applicable to fresh recruits in Tata Steel Jamshedpur organisation including tubes division w.e.f. January 1, 2010. Depending on their qualification and experience they will be appointed in an appropriate grade on successful completion of training.
2) The new wage series consists of twelve pay grades (NS-1 to NS-12). There will be four blocks (termed as groups) each having three pay grades for growth within the group.
3)Minimum wage, wage of trade apprentice and wage of diploma holder:
On appointment, the lowest paid employees in the new grade structure will be entitled to the minimum basic wage of Rs6,500 per month (pm) as Utility Hand-I (Grade NS-1), a trade apprentice will be entitled to basic wage of Rs8,000 pm as operation assistant-I / maintenance assistant-I (Grade NS-4) and a diploma holder will be entitled to basic wage of Rs11,000 pm as Junior Engineer-I (Grade NS-7). They will be paid fixed dearness allowance (FDA) of Rs500 pm and variable dearness allowance (VDA) as on January 1, 2010 will be nil.
4)Rates of Increment: The flat rate of increment for the employees in the lowest grade (NS-1) and highest grade (NS-12) in the new grade structure would be as follows:
5)The dearness allowance (DA): Employees recruited would be eligible for a fixed dearness allowance (FDA) of Rs500 pm.
Variable dearness allowance will be revised every quarter on April 1, July 1, October 1, and January 1, every year, based on the increase / decrease in the quarterly average of the All India Average Consumer Price Index (AIACPI) for the preceding quarter at the rate of Rs3 (Rupees three only) per point change in the AIACPI.
6)Date of annual increment: Employees in new grade structure would be eligible for their normal grade increment on the anniversary date(s) of their appointment.
7)Other allowances, etc. are as follows:
8)In addition to the above, employees would be eligible for facility of leave, employees compensation, life cover scheme, EFBS, FBS, housing, education for children, etc.
9)The provisions relating to grade structure, allowances and benefits / service conditions may be revised through mutual consultation w.e.f. January 1, 2012.
HM Nerurkar, managing director, Tata Steel, and Raghunath Pandey, president, TWU, and senior executives of the company and union office-bearers signed the settlement in the board room at Jamshedpur on September 7, 2010 at 6.00PM in the presence of the conciliation officer and the deputy labour commissioner, Jamshedpur.