Tata Motors on Friday resolved a long-pending wage settlement dispute with workers at its Sanand plant by agreeing to give each permanent employee a ₹16,000 hike. This will be a fixed wage till 2020.

The long-term wage settlement (LTS) between the Tata Motors Sanand Union and Tata Motors was amicably agreed upon and has been signed for five years with effect from October 2015 to September 2020, Tata Motors said in a statement.

The company said it has also introduced a performance-linked payment, which is accounted as 10 per cent of total salary, and will be linked to productivity, quality and safety.

Additionally, other benefits such as transport and canteen facilities and various other facilities, including rationalisation of leave rules and block closure days up to 24 days per year, were mutually agreed, it said.

Long-term solution “We have strived to resolve the LTS issue and today are delighted to have resolved the matter for a long term, ensuring our business operations’ competitiveness on one hand and taking care of the well-being of our shop-floor colleagues on the other,” said Tata Motors Chief Human Resource Officer Gajendra Chandel.

Tata Motors has around 500 permanent workers at this plant.

In February last year, Tata Motors suspended around 28 workers at the plant for misconduct. The move met with heavy resistance, with around 422 workers at the Sanand plant going on a flash strike to press for reinstatement of their colleagues. Workers at the plant have also been fighting for increased compensation, from an average about ₹12,000 per employee to ₹25,000.

In March,the union members also met the Labour Commissioner in Gujarat to push their demands.

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