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Manu P. Toms

Mumbai, Sept. 25 Tata Motors’ efforts to turn around Jaguar and Land Rover have hit a roadblock, with labour unions opposing any move to restructure the pension scheme or lower pay for new hires.

“We have told the company that we will not accept any plan which attacks the pension scheme or introduces a two-tier workforce. These demands must be off the table before we can negotiate with the company,” Ms Pauline Doyle, spokesperson for the Unite, the largest labour union in the UK, told Business Line.

This was in reaction to the new turnaround business strategy which was made public on Thursday and incidentally, referred to the probable closure of a plant in the West Midlands.

“The unions will be meeting in the coming weeks to discuss our formal response,” Ms Doyle said in an e-mail response. The Unite believes that the JLR management went back on its earlier agreement and, instead, attempts to bring in new terms without negotiations.

In April, the management and the unions had agreed on certain changes to the wage terms. The employees agreed to take a two-year freeze on increments and in return, the company assured them that there would be no lay-offs.

“We are very concerned that, without any negotiation, the company is seeking to push through further changes in terms and conditions which would see the pension scheme shut and replaced with an inferior one, and the introduction of a two-tier workforce as new starters will be expected to begin work on wages which are 20 per cent below those of their colleagues,” Ms Doyle said.

Mr Dave Osborne, Unite National Secretary for the automotive sector, said in a statement, “It appears that the company is making our members pay for its failure to secure government funding.”

A Tata Motors spokesperson said the company discussed the new business plan with the representatives of employees on Thursday. “The plan has been discussed with the unions. The discussions will continue and we hope to arrive at mutually satisfactory conclusions,” he added.

More Stories on : Cars | Restructuring | Tata Motors Ltd | Trade & Labour Unions

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