Tata Steel Signs Wage Revision Agreement for Jharia, West Bokaro

7-year settlement includes pay hikes, allowance revisions for over 4,000 workers

The agreement, effective from July 2022 to June 2029, covers wage revisions and benefits for colliery workers in Jharia and West Bokaro.

JAMSHEDPUR – Tata Steel has inked a fresh wage revision pact with the Rashtriya Colliery Mazdoor Union for employees at its Jharia and West Bokaro collieries.

The memorandum of settlement, signed on August 23, 2024, encompasses several crucial changes:

1. Duration: The agreement spans 7 years, from July 1, 2022, to June 30, 2029.

2. Minimum Guaranteed Benefit (MGB):

– Old Series: 13% increase on emoluments as of June 30, 2022

– New Series: Varies based on pre-revised basic slabs

3. Wage Revisions:

– Significant increases in minimum and maximum wages for both monthly and daily rated employees

– Two additional increments scheduled for August 1, 2024, and July 1, 2028

4. Dearness Allowance:

– Old Series: Continues with Variable Dearness Allowance (VDA) system

– New Series: Rs 3/- per point increase in AIACPI over base index 8242

Revised Wage Structure

The settlement introduces substantial wage hikes across various grades:

Allowance Revisions

The agreement also includes updates to various allowances:

– House Rent Allowance: Increased from Rs 1,000 to Rs 1,450 per month

– Gas Allowance: More than doubled from Rs 550 to Rs 1,250 per month

– Washing Allowance (Non-Nursing): Raised from Rs 260 to Rs 375 per month

– Washing Allowance (Nursing): Increased from Rs 300 to Rs 425 per month

Special Provisions

A noteworthy addition is the revision of the Positional Allowance for West Bokaro employees:

– Applicable to Sr. Mining Associate and Mining Associate roles

– Covers operators of Dumpers, Dozers/Graders, Drill Machines, and Loading Equipment

– Increased from Rs 1,500 to Rs 2,100 per month, effective August 1, 2024

Employee Coverage and Signatories

The agreement impacts a total of 4,042 employees across both divisions:

– 2,404 employees under the old series

– 1,638 employees under the new series

Mr. T V Narendran, CEO & MD of Tata Steel Limited, stated, "This agreement reflects our commitment to our workforce and ensures a mutually beneficial relationship for the coming years."

Mr. Kumar Jaimangal, President of Rashtriya Colliery Mazdoor Union (RCMU), added, "The revised terms will significantly improve the living standards of our workers and their families."

The settlement was officially signed at the Tata Steel boardroom in Jamshedpur, with key executives and union representatives present.