Mumbai:
Workers union of Tata Motors’ Pune plant has said it has lost faith in Chairman Cyrus Mistry’s leadership, accusing him of “deliberately misleading” and making “objectionable statements” about it.
Mistry, in a letter to shareholders of Tata Motors last week, had alleged that Ratan Tata “undermined a key reform” for introduction of an “incentive linked to productivity” at Tata Motors by asking for public support from the auto major’s labour unions.
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Denying the allegations, Tata Motors Employees Union, Pune said: “The meeting with Mr Ratan Tata was planned well in advance. On November 10, 2016, Mr Tata appealed to the union not to worry about the top-level disturbance but appealed to them to work hard for the benefit of the company.”
Commenting on the wage settlement negotiations with the management, the union said over 15 months have passed despite verbal assurance given by senior management that “an amicable solution would be arrived at within a fortnight”.
“...with no concrete action taken, the union has now lost faith in Mr Mistry’s leadership, which is often deliberately misleading. It is shocking for the union to note that a person of the stature of Mr Mistry, occupying such an important stature in Indian industry would resort to such immature actions,” the union said in a statement.
Praising Tata’s stewardship, it said: “In reality under the leadership of Mr Ratan Tata during the year 2003, 2006 and 2009 settlements, we have accepted quality, productivity, safety and profit linked wage agreement for the prosperity and future of the organisation.”
After the 2003 settlement, the union accepted various initiatives and the company benefited and has shown continuous improvements till 2012, it added.
Mistry, who is currently the Chairman of Tata Motors will face a voting by shareholders on December 22 after Tata Sons moved a resolution to oust him as director from the company’s board.
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Yesterday Tata Sons had purchased a total of 5 crore shares of Tata Motors amounting to 1.73 per cent stake in the company. As of September, Tata Sons held 26.98 per cent stake in Tata Motors with promoter and promoter group standing at 33 per cent.
Already shareholders of Tata Industries, Tata Consultancy Services and Tata Teleservices have voted in favour of Tata Sons’ move to remove him as director from the respective boards.
