Abstract

The case ‘Labor Unrest at Tata Motors Plant and the Long Term Wage Settlement Agreement’ is about the long-term wage settlement agreement entered into between the workers union and the management of Tata Motors at its Sanand Plant, Gujarat, on June 9, 2017. The reason for the strike by the workers is described in detail. The long pending issue of a wage hike and the suspension of some of the workers due to indiscipline provided the trigger for the flare-up and the strike by the employees. After a long period of negotiations between the workers union, the management, and the representatives of the Labor Department of Government of Gujarat, a long term wage settlement agreement was finally reached. Apart from the hike in wages, a performance linked bonus of ten percent of the total salary was offered, which was on the basis of productivity of the employees, the safety of the plant resources, and the quality of workmanship. Prior to the wage agreement at the Sanand Plant, Tata Motors had settled the wage hike issue at its Pune Plant. In September 2019, Tata Motors had entered into a long term wage settlement agreement at its Jamshedpur plant and it planned to implement long term wage settlement agreements at its other locations in Dharwad, Pantnagar, and Lucknow.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the various approaches to negotiation and the negotiation process.
• Evaluate the difference between distributive bargaining and integrative bargaining.
• Understand the importance and role of mediator/ arbitrator/ conciliator in negotiations.
• Understand the relevance of long term wage settlement agreements.

Keywords

Wage Settlement; Negotiation; Distributive Bargaining; Integrative Bargaining; Arbitrator; Mediator; Long Term Wage Settlement; Trade Unions; Strike; Labor Unrest; Tripartite Meeting; Conciliation; Tata Motors.