Jamshedpur: Automobile major Tata Motors has suspended operations at its Jamshedpur plant for seven days starting May 29, as part of its business and production adjustment strategy amid prevailing market conditions.
The shutdown, which will continue till June 4, includes compensatory offs, a block closure and the regular weekly holiday, resulting in a temporary halt in activities across departments, divisions and general offices.
The company informed employees about the decision through two separate internal circulars.
According to the first circular, compensatory leave has been granted to employees who had worked on scheduled weekly off days earlier this year. Under the arrangement, May 29 has been declared a compensatory off for employees who worked on March 15, May 30 against duty performed on March 29, and June 1 against work done on April 19. May 31 falls under the normal weekly holiday schedule.
However, the Foundry Division will remain operational on May 29 and May 30, as the compensatory off arrangement will not apply to that unit.
Employees assigned duties during the shutdown period have been asked to avail their compensatory leave within the prescribed timeframe.
In another circular, Tata Motors announced a block closure from June 2 to June 4 under provisions of the wage agreement signed between the company management and the workers’ union on March 19.
As per the agreement, employees affected by the block closure will adjust 50 per cent of the closure period against their Privilege Leave (PL) or Casual Leave (CL), while the company will bear wage expenses for the remaining period.
Industry observers believe the temporary production halt is part of Tata Motors’ broader strategy to streamline inventory and align manufacturing output with current market demand trends.