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The Tata Motors employees union, representing the workers at the company’s plant in Pune, has backed the ouster of Cyrus Mistry, saying the relationship between the management and the employees has taken a hit over the past 14 months.
Tata Motors Employees Union-Pune is the company’s single largest employees union with 7,250 members.
The union’s move comes ahead of a crucial board meeting of the automobile company on Monday, which is expected to see board members take a stand on Mistry’s continuation as Tata Motors Chairman.
Tata Sons, which owns a 26.51 per cent stake in Tata Motors, has already moved a resolution to remove Nusli Wadia and Mistry from the board of Tata Motors.
Wadia on Thursday had backed Mistry in the Tata Chemicals board meeting.
He also tried to get the Tata Steel board to back Mistry, but faced opposition from at least three independent directors.
Wadia may attempt to get support from the Tata Motors board, but could face opposition from some of the independent directors, according to sources in both the camps.
Last week, Ratan Tata had met the union leaders of Tata Motors in Mumbai ahead of the November 14 board meeting.
In a letter to Guenter Butschek, CEO and MD of Tata Motors, the union said: “During this time of turmoil we reiterate our complete and dedicated commitment to the decisions taken by Mr Ratan Tata over the change in leadership of Tata Sons Ltd.”
“Tata Motors has grown in leaps and bounds under Mr Ratan Tata’s visionary leadership. We wish to commit our whole-hearted support to Mr Ratan Tata's decisions in future and greatly respect his leadership,” it added.
Separately, the workers’ union at the company’s Jamshedpur unit has also written a note backing Ratan Tata’s leadership.
The board meeting is crucial for both Mistry and Tata in the ongoing battle for control of group companies after the former’s ouster as Chairman of Tata Sons.
While Mistry has managed to get the support of the independent directors at Indian Hotels and Tata Chemicals, he has been replaced as Chairman at TCS.
Mistry also continues to be the Chairman of Tata Steel even though the board was divided on backing him.
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