Tata Motors Jamshedpur plant to undergo five-day block closure

Homegrown automobile giant Tata Motors will undertake a block closure at its Jamshedpur facility from May 18 to May 22, as per an internal communication sent to its employees on Monday.
The employees have been asked to report for duty on May 24.

The announcement comes ahead of the company's board meeting scheduled on May 18 to consider and approve the audited financial results for the quarter and financial year ended March 31.

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"It has been decided to effect Block Closure in Jamshedpur plant from Tuesday May 18, 2021 to Saturday, May 22, 2021," the internal communication said.

A Tata Motors spokesperson confirmed the block closure saying that it is a routine closure for "maintenance".

"Tata Motors Jamshedpur plant will observe block closure from May 18 to May 22. This is to conduct our annual maintenance activities and also support the ongoing statewide lockdown being observed to break the chain of the prevailing pandemic," the spokesperson said.

Tata Motors Workers' Union, Jamshedpur general secretary RK Singh said the production of commercial vehicles has come down at the facility due to COVID-19 pandemic as around 50 per cent of the about 9,000 workers come in buses but bus operations are suspended in the state till May 27 in view of the lockdown.

The internal communication said the workmen affected by block closure shall avail their privilege and or casual leave for 50 per cent of the day and for the remaining half of the period they shall be paid their normal wages/salary by the company while for all other purposes the block closure "shall be deemed the day attended by the workmen."

It said a separate notice would be issued for the employees who would be required to work during the block closure by the concerned division or department head.

"These employees shall report for duty as if, this day is a normal working day for them," it read.

The company's board in its meeting on Tuesday will consider financial results and a proposal for raising funds by way of issue of one or more instruments, including convertible securities through preferential issue, private placements, rights issue or any other methods in the domestic or international markets.

However, Tata Motors did not give an indication on the quantum of the amount that the company intends to raise.

Last month, Tata Motors had said it has set in motion a business plan to protect and serve the interests of its customers, dealers and suppliers as the lockdowns enforced in various parts of the country are expected to impact vehicle demand temporarily.

Tata Motors Group is a USD 35 billion organisation and a leading global automobile manufacturing company.

Its Jamshedpur plant manufactures heavy commercial vehicles.