Ban on BS III vehicles: 6000 temporary employees of Tata Motors laid off,200 ancillaries to suffer
Tata Motors also announced a two-day block closure at Jamshedpur plant on March 31 and April 3. It issued a notice in this regard on Thursday. HT is in possession of a copy of the company’s notice, which reads, ”Permanent employees and trainees shall report for their duty on April 4 in the shift assigned to them.”Updated: Apr 02, 2017 14:14 IST
Around 6,000 temporary employees at Tata Motors were laid off allegedly in the wake of the Supreme Court’s verdict banning sale of BS III vehicles from April 1, 2017.
The apex court on March 29 had banned sale and registration of Bharat Stage III (BS-III) vehicles from April 1, observing that these vehicles could aggravate the deteriorating air quality in the country. It directed all automobile companies to stop sale of BS III vehicles, saying that health of citizens is more important than commercial interest.
Tata Motors also announced a two-day block closure at Jamshedpur plant on March 31 and April 3. It issued a notice in this regard on Thursday. HT is in possession of a copy of the company’s notice, which reads, ”Permanent employees and trainees shall report for their duty on April 4 in the shift assigned to them.”
Other than dismissal of temporary employees at the heavy cab fitment line, around 5,000 permanent employees and an equal number of trainees with different segments did not join work during the block closure on March 31. Reportedly, annual production of over 80,000 vehicles will be affected by the block closure and temporary employees’ severance from jobs.
Ranjit Dhar, outgoing spokesman of Tata Motors, Jamshedpur plant, on Friday said that temporary employees will be taken back into service as per the future production demand. Company sources, however, said that temporary employees will be called back on duty once production of BS IV vehicles starts on a large scale.
Senior trade union leader, DD Tripathi said around 25,000 family members of temporary employees will be affected.
The company’s decision would have far reaching effect on the fate of nearly 800 ancillary units situated at Adityapur Industrial Area Development Authority (AIADA). These units are largely dependent on Tata Motors.
“Around 800 ancillary units in AIADA will be affected by the decision. But Tata Motors is capable enough to face this situation and the SC verdict will not have a long lasting effect on the company,” said president of Singhbhum Chamber of Commerce and Industries Suresh Sonthalia.
First Published: Apr 02, 2017 14:14 IST