September 07, 2010

New wage series for fresh recruits in Tata Steel Jamshedpur organisation including tubes division

Jamshedpur: A Memoranda of Settlement dated September 7, 2010, has been signed between Tata Steel and the Tata Workers' Union (TWU) for introduction of the new wage series and other allied matters for fresh recruits at Tata Steel Jamshedpur organisation including tubes division.

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.
  Utility Hand-I (Grade NS-1) Service Assistant-I/ Operation Assistant-I/ Maintenance Assistant-I (Grade NS -4) Service Coordinator-I/ Junior Engineer-I (Grade NS-7)
Basic pay Rs6,500 pm Rs8,000 pm Rs11,000 pm
FDA Rs500 pm Rs500 pm Rs500 pm
VDA Nil Nil Nil
Total Rs7,000 pm Rs8,500 pm Rs11,500 pm
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:
Rate of Increment Lowest grade (NS-1) Highest grade (NS-12)
Rs200 pm Rs450 pm

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:
Allowances Range (from lowest to highest )
House rent allowance Ten per cent of basic salary
Transport subsidy / conveyance allowance Transport subsidy — Rs16 per day (pd), Minimum Rs240 pm
Two wheeler — Rs850 pm to Rs900 pm
Four wheeler — Rs1,300 pm to Rs1,500 pm
Night shift allowance Rs95 pd
Leave travel concession Rs13,000 to Rs15,000 in a block of two years
Vehicle maintenance allowance Rs145 pm to Rs250 pm
Utility allowance Rs250 pm
Incentive bonus (Rs per point) Rs3.07 per point of incentive bonus to Rs17.59 per point of incentive bonus depending on individual grade.
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.

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