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Tata Motors disengages 700 temporary employees in 3 days

Posted by Yogesh on Friday, 24 October, 2008

JAMSHEDPUR: The economic slowdown seems to have reached the job market, with leading private auto maker Tata Motors disengaging the services of 700 temporary employees in just three days.

The company today let the contract of 400 temporary workers lapse, bringing down the strength of such workers to 1,200, Employees Union General Secretary Chandra Bhan Singh said.

When contacted, Tata Motors spokesperson, without giving specific numbers, said: “It is a regular process, we engage them (temporary workers) as per the requirement.”

The production of truck chassis has come down to 5,000 a month from 8,000 till some time ago, sources said.

It is understood that a slow down in the demand for commercial vehicles has prompted the company to disengage temporary employees from service.

Singh said there are about 3,500-3,600 workers who are engaged by the company on rotational basis depending upon the requirement from time to time.

Earlier this week, the company had asked 300 temporary employees to leave and with today’s decision 700 workers’ contracts have been allowed to lapse in the last three days at its Jamshedpur manufacturing facility.

“In this financial year, since April 2008, the (Jamshedpur) plant has engaged, on an average, 1,455 temporary workmen every month. 300 such temporary workmen’s assignments have ended and they have been disengaged,” the spokesperson had said on October 21.

Explaining reasons for the move, the spokesperson had said: “Like other companies, Tata Motors’ Jamshedpur plant too takes in temporary workmen, by definition on temporary assignment and they are disengaged after the assignment is over.” Source The Economic Times

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