CONTRACT LABOUR MANAGEMENT AT TATA STEEL

Internship report submitted

In partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATIONBy

Student Name

ARCHANA KUMARI

14MBA 004

(BATCH-2014-2016)

MBA

Under the esteemed guidance ofDr. V Rama Devi

Dept. of Management

Sikkim University

6th mile, Tadong, Gangtok, Sikkim – 737102

September 2015

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DECLARATION

I, ARCHANA KUMARI student of Sikkim University Id. No: 14MBA004 hereby declare that

the Internship Report titled” CONTRACT LABOUR MANAGEMENT AT TATA STEEL” is submitted by me in partial fulfillment of the requirement for the award of the degree of Master of Business Administration under the guidance of

I confirm that this Report has not been submitted to any other University or Institution in full or

in part for the award of any Degree or Diploma.

Place: JAMSHEDPUR TATA STEEL

Date: 26TH june to 31stjuly Signature

ARCHANA KUMARI

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CERTIFICATE FROM THE COMPANY

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CERTIFICATE

This is to certify that archana kumara , university Id.No.14MBA004 worked under my

supervision for the Internship Report titled “ contract labour management at tata steel“ during the

academic year 2014-2016 in partial fulfillment of the M.B.A Program requirements.

Signature of the Student

Signature of Faculty Supervisor

Signature of the HOD

ACKNOWLEDGEMENTSTATA STEEL

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This is a matter of great pleasure as well as great privilege and pride for me to present this

project report. This project became possible only due to full cooperation and sincerity

provided by the Company and Institute as well. I am indebted and thankful to the

management of TATA STEEL for providing me an opportunity to work in this esteemed

and flourishing organization.

Research Report is a combined effort including this one also, so I would like to thank to all

who have helped me completion of this report purposeful.

Further I would like to thanks to my faculty my guide for their valuable support and

advices which helps me a lot to completing this project purposeful.

TABLE OF CONTENTS

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Chapte

r

Content Page Number

1. 1. Executive summary 8

1.1 Introduction 10

1.2 Industry profile 11-22

1.3 Objectives of Internship 23

2. 2.1 company profile 26

2.2 products/ services offered 27

2.3 customers of product 28

2.4 SWOT analysis 29

3 3.1 Activity performed during the intern 31-33

3.1 Contract Labour Management 34

3.2Applicable Rules & Act 35

3.3 Description of the Acts. 36-39

3.4 Applicability of Acts & Rules pertaining to Tata Steel work

40-41

3.5 Condition of service Of Workmen of the Contractor

42-45

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4. 4.1 key learning element 47

4.2 gaps reviewed in the act of tata steel 48-49

4.3 Responsibility of employer (contractor) 50-53

4.4 Conclusion 54

4.5 recommendation 55-56

5. Bibliography 57

6. Glossary 58

LIST OF TABLES

Table No. Table Name Page

Number

Table 2.1 Primary product and their customers 27

Table 4.1 Applicability of principal employers and the gaps 48-49

Table 4.2 Gaps reviewed with the contractors at tata steel 51-53

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CONTRACT LABOUR MANAGEMENT AT TATA STEEL

"Law is not an abstract thing, it is a living organism since it is applied on living human beings".

EXECUTIVE SUMMARY

Contract labour management is a growing area in most of the organizations. Today, it is almost unavoidable for any principal employer not to avail any services of contract workers. However, due to compliance issues, safety and security issues, accidents, etc, the entire contract labor management process is becoming a complex subject for departments like HR, securities and facilities; etc Tata steel has engaged nearly 680 contractors till date. The Contract Labour management System is one such effort to ensure the welfare of the Contract labour engaged, as well as to strive towards 100% statutory Compliance.

Tata Steel respects the right of employees to exercise freedom of association and collective bargaining. As working in contract worker relation cell I came to know about the relation of contractors and the format of work done in Tata steel. At first the contactors get themselves registered under the government. They fill the form 12 and form 13.This project was conducted mainly to find the gaps in implementation of the act in Tata steel. There are different norms of rules and regulation that the contractors have to follow when they come in contract with Tata steel. Working for almost 40 days as an intern and getting knowledge of the work process of the contract labour management. The works are related with the act. There are many industries who work in different field but in Tata steel working in contract cell was a different work experience. It carries the basic work of the workers involved in Tata steel.

The work which is carried forward here is the checking of the wage payment.

Full and final settlements of the workers are done of the person who willing wants to reign from the work.

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CHAPTER -1

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INTRODUCTION

Tata Steel Limited I have completed my summer internship in this company I worked in contract labour management department. Our internship was for 40days. This a 24x7 running company the production never stops in this company. As working in this department we come to know the problems of working in Tata steel.

GAIN WORK EXPERINCE AND TRANSFERABLE SKILLS

Students all have their educational experience in common. What stands out to employers is those students who also have work experiences by the time we graduate. This automatically makes us more marketable; as we may require less training and are assumed to be able to handle more responsibilities. In addition to the specialized skills of ur field, transferable skills are generally required at any job e.g. communication/interpersonal skills, computer proficiency, and team work.   

ABLE TO EXPERINCE A PROSPECTIVE CAREER PATH

Most students enter college with an idea of a major or career pat and most students end up changing their minds. Exploring is a very important part of the academic process, and gaining a work experience is a great way. By the time of graduation, we have confidence that the degrees we are receiving are the right ones for us.  

BETTER COMMUNICATION AND INTRACTION WITH SENIORS

It’s all about who we know. As a student intern, we are surrounded by professionals in the industry that we are seeking access to. It’s more than just about getting a grade, earning credit. This is an opportunity to learn from everyone around us, ask questions, and impress them with your eagerness. These people can be your future colleagues or can be the connection to your first job.

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Industry profile

 Tata Steel’s larger production facilities comprise those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia.  Operating companies within the Group include Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), Tata Steel Singapore and Tata Steel Thailand.

 The Tata Steel Group’s vision is to be the world’s steel industry benchmark in “Value Creation” and “Corporate Citizenship” through the excellence of its people, its innovative approach and overall conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and social responsibility, continuous improvement, openness and transparency.

 In 2008, Tata Steel India became the first integrated steel plant in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management. In 2012, Tata Steel became the first integrated steel company in the world, outside Japan, to win the Deming Grand Prize 2012 instituted by the Japanese Union of Scientists and Engineers.

Indian Operations 

Tata Steel founded India’s first industrial city, now Jamshedpur, where it established India’s first integrated steel plant in 1907. The Jamshedpur Works currently comprises of a 9.7 mtpa crude steel production facility and a variety of finishing mills. Mines and collieries in India give the Company a distinct advantage in raw material sourcing. Iron Ore mines are located at Noamundi (Jharkhand) and Joda (Odisha) both located within a distance of 150 km from

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Jamshedpur. The Company’s captive coal mines are located at Jharia and West Bokaro (Jharkhand).

 

Visit website : www.tatasteeleurope.com

European Operations

Tata Steel Europe (erstwhile Corus) has a crude steel production capacity of 18 mtpa. Tata Steel Europe has manufacturing operations in Western Europe, plants in UK, Netherlands, Germany, France and Belgium, backed by a sophisticated global network of sales offices and service centres. 

South East Asian Operations 

Visit websites : www.natsteel.com.sg | www.tatasteelthailand.com

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Tata Steel started its operations in SEA in 2004 with investments in NatSteel Singapore (Tata Steel Singapore) and Millennium Steel (Tata Steel Thailand).

 With over 40 years of Steel making experience, Tata Steel Singapore is one of the most prominent steel producers in the Asia Pacific region. It caters to the growing construction industry through its manufacturing presence in Singapore, Thailand, China, Malaysia, The Philippines and Australia.

 

The long journey

In his lifetime J.N.Tata was captivated and led by the three guiding stars - building an iron and steel company, generating hydro-electric power and creating an institution that offer the best education in science.

 Jamsetji Tata had started his quest for steel way back in 1882 but it was twenty-five years later, in December 1907 that the explorers found their way to Sakchi - at the confluence of the rivers Subarnarekha and Kharkai. On 27th February 1908 when the first stake was driven into the soil of Sakchi the dream had come alive.

 When Tatas issued shares on 26th August 1907, for the first time in the financial history of the country, the Indian people - the masses, the affluent and the common people -joined hands to put up the first truly Indian enterprise. The Tata family contributed the remaining 11% shares of the Tata Iron and Steel Company Limited.

 It did not take long for work to begin thereafter. In 1908 the plant became functional and the next year, in 1909 the blast furnaces, steel furnaces, coke ovens, powerhouse and machine shops were laid down. Land for the site, mines and quarries were acquired in 1910. The Government contributed their bit by connecting railway to Gorumahisani. The first steel ingot was rolled on 16th February 1912 - a momentous day in the history of industrial India.

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Towards self-sufficiency

The Steel Company obtained its first colliery in 1910, adding six more in course of time. Several mines were spread over the states of Bihar, Orissa and Karnataka. The Tatas soon became the first to own a fully mechanised iron ore mine in India at Noamundi. The Coal Beneficiation Plant at West Bokaro undertook beneficiation of low-grade coal, thus helping in the conservation of the fast dwindling resources of high quality coal. The collieries, the mines and the quarries together furnish the bulk of the raw material requirements of the plant.

 When the entire world was reeling in the Great Depression, the Tatas survived and supplied nearly three-fourth of the country’s steel requirements. By the Second World War, Tatas’ production capacities had expanded enough to make their prices lower than those of steel produced in England, raising them to an authoritarian position. Post-Independence the Tatas decided to set on the Herculean task of nation building. The much-required steel for the newly devised ‘Five-year Plans’ came from the Tata factories. The Company undertook the Howrah Bridge in Calcutta, the Bhakra-Nangal Project and the Damodar Valley Corporation, the port at Kandla, the city of Chandigarh and many more important projects.

Picking up pace

The last decade of the twentieth century happened to be a very hectic period of self-renewal and growth for Tata Steel. An extensive technological overhaul, several improvement projects, cost control measures, optimising IT support and a strong customer-centric approach were all instrumental in finding the right direction for changing outlooks. At the turn of the millennium, Tata Steel had earned the complete trust of the whole wide world and emerged as a strong entity in the global steel industry.

 The last decade has been marked by Tata Steel’s prominent role in the overall development of the country, even during phases of economic turbulence and its decisive foray into more and more global territory. Intense strategic thinking about future expansions, plans for organic growth and initiation of new projects are a few highlights in Tata Steel’s expanding and more penetrative roles in the larger perspective. The acquisition of NatSteel in 2004 was Tata Steel’s first overseas acquisition and the series of joint ventures and mergers that followed found a peak when the acquisition of Corus, happened in April 2007.  But in every positive step

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that the Company has taken towards growth and expansion, involving diverse cultures and geographies, Tata Steel has never lost sight of its great heritage of social and community responsibility.

The global steel company

The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The supreme crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth.

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY

The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.

Country Crude Steel Production (mtpa)

CHINA 272.5 JAPAN 112.7 UNITED STATES 98.9 RUSSIA 65.6 SOUTH KOREA 47.5 F.R.GERMANY 46.4 UKRAINE 38.7 BRAZIL 32.9 INDIA 32.6 ITALY 28.4

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SUPPLY OF STEEL IN THE INDIAN MARKET

Over the past ten years India‘s crude steel output rose nearly 7%per year to 55.3 million tons , while global crude steel output increased by 4% (Germany managed an increase of just under 1%p.a.) Although India is the world‘s eighth largest steel producer, its3%-plus share of global steel output is still very low; it is roughly the same as Ukraine‘s share of world steel production. China, the world‘s biggest steelmaker, produces nearly ten times as much as India. only China was the growth rate considerably higher at 15%. By contrast, production volumes fell in the US and the EU-25 by nearly 5% and roughly 4% respectively. In the first five months of 2006 Indian steel production continued to expand unabated, rising 10%. We forecast a significant increase in output by the Indian steel industry over the medium term. The entire industry‘s contribution to gross domestic product should rise in the coming years to more than 30% – compared to just fewer than 27% at present. The growth drivers are the expanding client industries automotive engineering.

RISK FACTORS:

Even though India is now one of the world‘s top ten steelmakers its domestic output is insufficient to meet the demand in all segments. In 2005, some 4.7 million tons of steel were imported, compared with only 2.2 million ten years earlier (an annual increase of 8%). Low steel prices smooth the way for imports from Russia, Ukraine and Kazakhstan. The geographical proximity of Japan, South Korea and China makes them important suppliers as well. We do not expect India to be self-sufficient in many segments over the medium term. There are several reasons for this: firstly, steel consumption is rising very fast as a consequence of the prospective dynamic economic growth. Secondly, there is demand for high-quality products which India will not be able to supply in sufficient quantities for the foreseeable future. These include products with surface finishing that helps them to be more durable and retain their value for longer. In general, the trend towards weight-optimized components persists; this improves the prospects for Western European exporters in the Indian market. As a member of the WTO (since 1995) India is obliged to gradually abolish import restrictions, so importing steel should be far less problematic in future.

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MAJOR PLAYERS OF STEEL IN INDIA:

1. Public Sector

(A) Steel Authority of India Limited (SAIL) Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. It has five integrated steel plants at Bhilai (Chattisgarh), Rourkela (Orissa), Durgapur (West Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special and alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant at Salem (Tamilnadu) and Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka). In addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. at Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development Centre for Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL Safety Organisation (SSO) and Management Training Institute (MTI) all located at Ranchi; Central Coal Supply Organisation (CCSO) at Dhanbad; Raw Materials Division (RMD), Environment Management Division (EMD) and Growth Division (GD) at Kolkata. The Central Marketing Organisation (CMO), with its head quarters at Kolkata, coordinates the country-wide marketing and distribution network. (B) Rashtriya Ispat Nigam Ltd. (RINL):- RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh. The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per annum (mtpa) of liquid steel. The plant has been built to match international standards in design and engineering with state-of- the- art technology incorporating extensive energy saving and pollution control measures. Right from the year of its integrated operation, VSP established its presence both in the domestic and international markets with its superior quality of products. The company has been awarded all the three International standards certificates.

C) Metal Scrap Trade Corporation Ltd. (MSTC) :- MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a canalizing agency for the export of scrap from the country. With the passage of time, the company emerged as the canalizing agency for the import of scrap into the country. Import of scrap was de-canalized by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and miscellaneous scrap

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arising out of steel plants and other industries and importing Coal, Coke, Petroleum products, semi finished steel products like HR Coils and export primarily Iron ore. The Company has also established an e-auction portal and undertakes e-auction of Coal, Diamonds and Steel Scrap and has developed an e- procurement portal in house.

(D) Ferro Scrap Nigam Ltd. (FSNL) FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs. 200 lakh. The Company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai, Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi & Raigarh. The scrap recovered is returned to the steel plants for recycling/ disposal and the Company is paid processing charges on the quantity recovered at varying rates depending on the category of scrap. Scrap is generated during Iron & Steel making and also in the Rolling Mills. In addition, the Company is also providing Steel Mill Services such as Scarfing of Slabs, Handling of BOF Slag, etc.

(E) Hindustan Steelworks Construction Ltd. (HSCL) HSCL was incorporated in June 1964 with the primary objective of creating in the Public Sector an organization capable of undertaking complete construction of modern integrated Steel Plants. HSCL had done the construction work of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant from the inception till commissioning and was associated with the expansion and modernization of Bhilai Steel Plant, Durgapur Steel Plant, IISCO (Burnpur) and also Bhadravati Steel Plant. With the tapering of construction activities in Steel Plants the company intensified its activities in other sectors like Power, Coal, Oil and Gas. Besides this, HSCL diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams, Underground Communication and Transport system and Industrial and Township Complexes involving high degree of planning, co-ordination and modern sophisticated techniques. The company has developed its expertise in the areas of Piling, Soil investigation, Massive foundation work, High rise structures, Structural fabrication and Erection, Refractory, Technological structures and Pipelines, Equipment erection, Instrumentation including testing and commissioning. The company has also specialized in carrying out Capital repairs and Rebuilding work including hot repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel Plants.

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2. Private Sector

The private sector of the Steel Industry is currently playing an important and dominant role in production and growth of steel industry in the country. Private sector steel players have contributed nearly 67% of total steel production of 38.08 million tonnes to the country during the period April-December, 2007. The private sector units consist of both major steel producers on one hand and relatively smaller and medium units such as Sponge iron plants, Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-rolling Mills and Coating units on the other. They not only play an important role in production of primary and secondary steel, but also contribute substantial value addition in terms of quality, innovation and cost effective.

(A)TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has completed the first six months of fiscal 2007-08 with impressive increase in its hot metal production. The hot metal production at 2.76 million tonnes is 4.6%more compared to the corresponding period of the previous year. The crude steel production during the period was 2.43 million tonnes which is marginally lower than the production of 2.45 million tonnes last year. The saleable steel production was at a lower level during the period April September, 2007 (2.34 million tonnes) compared to the corresponding period of last year (2.36 million tonnes). Tata Steel is continuing with its programme of expansion of steel making capacity by 1.8 million tonnes to reach a rated capacity of 6.8 million tonnes. The Project is reported to be moving ahead of schedule and is likely to be commissioned by May 2008 against the original schedule of June 2008. The Company has planned to take the capacity to 10 million tonnes by the fiscal year 2010. Tata Steel‘s Greenfield projects in Orissa and Chattisgarh are progressing on schedule with placement of equipment order for Kalinganagar Project in Orissa and commencement of the land acquisition process. Jharkhand Project is awaiting announcement of Relief & Rehabilitation policy of the State Government.

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(B)ESSAR STEEL LTD. Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA, the Middle East and Asia. It is a fully integrated flat carbon steel manufacturer—from iron ore to ready-to-market products. ESHL has a current global capacity of 8 million tonnes per annum (MTPA). With its aggressive expansion plans in India and other parts of Asia and North America, its capacity is likely to go up to 25 MTPA by 2012. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction, engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel Holdings Limited, is the largest steel producer in western India, with a current capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA. The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla, Chattisgarh which has world‘s largest slurry pipeline of 267 km to transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet complex at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the world‘s largest gas-based single location sponge iron plant, with a capacity of 4.6 MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling complexes. The steel complex has a complete infrastructure setup, including a captive port, lime plant and oxygen plant. Essar Steel produces highly customized value-added products catering to a variety of product segments and is India‘s largest exporter of flat products, selling close to half of its production to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. The company‘s products conform to quality specifications of international quality certification agencies, like ABS, API, TUV Rhine Land and Lloyd‘s Register. Essar Steel is the first Indian steel company to receive an ISO 9001 and ISO 14001 certification for environment management practices. Essar Steel utilizes Hot Briquetted Iron-Direct Reduced Iron (HBIDRI) technology supplied by Midrex Technology, USA along with four 150 tonnes DC electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel is equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are furnace, 4.6 MTPA continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-08, Essar was awarded costs ISO/TS 16949 and OHSAS 18000 certification.

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(C) JSW STEEL LTD.

JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of Iron Ore Beneficiation – Pelletisation – Sintering – Coke making – Iron making through Blast Furnace as well as Corex process – Steel making through : BOF- Continuous Casting of slabs – Hot Strip Rolling – Cold Rolling Mills. JSW Steel has a distinction of being certified for ISO-9001:2000 Quality Management System, ISO-14001:2004 Environment Management System and OHSAS 18001:1999 Occupational Health and Safety Management System. The capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise to 6.8 MTPA by 2008, and further to 9.6 MTPA by 2010.

(D) JINDAL STEEL & POWER LTD. (JSPL)

Jindal Steel & Power Limited is one of the fast growing major steel units in the country. The Raigarh plant of JSPL has a present capacity of 1.37 million tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS), 1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt captive power plant. During the year 2006-07, the company produced 1.19 million tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million tonnes of hot metal and 0.21 million tonnes of rolled products.

FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY

The growth of the Indian steel industry and its share of global crude steel production could be even higher if they were not being held back by major deficiencies in fundamental areas. Investment in infrastructure is rising appreciably but remains well below the target levels set by the government due to financing problems.

1. Energy supply: Power shortages hamper production at many locations. Since 2001 the Indian government has been endeavoring to ensure that power is available nationwide by 2012. The deficiencies have prompted many firms with heavier energy demands to opt for producing electricity with their own industrial generators. India will rely squarely on nuclear energy for its future power generation requirements. In September 2005 the 15th and largest nuclear reactor to date went on-line. The nuclear share of the energy mix is likely to rise to roughly 25% by 2050. Overall,

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India is likely to be the world‘s fourth largest energy consumer by 2010 after the US, China and Japan.

2. Problems procuring raw material inputs:Since domestic raw material sources are insufficient to supply the Indian steel industry, a considerable amount of raw materials has to be imported. For example, iron ore deposits are finite and there are problems in mining sufficient amounts of it. India‘s hard coal deposits are of low quality. For this reason hard coal imports have increased in the last five years by a total of 40% to nearly 30 million tons. Almost half of this is coking coal (the remainder is power station coal). India is the world‘s sixth biggest coal importer. The rising output of electric steel is also leading to a sharp increase in demand for steel scrap. Some 3.5 million tons of scrap have already been imported in 2006, compared with just 1 million tons in 2000. In the coming years imports are likely to continue to increase thanks to capacity increases.

3. Inefficient transport system: In India, insufficient freight capacity and a transport infrastructure that has long been inadequate are becoming increasingly serious impediments to economic development. Although the country has one of the world‘s biggest transport networks – the rail network is twice as extensive as China‘s – its poor quality hinders the efficient supply of goods. The story is roughly the same for port facilities and airports. In the coming years a total of USD 150 bn is to be invested in transport infrastructure, which offers huge potential for the steel industry.

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OBJECTIVE

To attain a clear understanding of the applicable laws. To know the applicability of the act(s) and its objective My study is to find the gaps in regard of contract labour act which is even

followed by tata steel.

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CHAPTER -2

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Company profileTata Steel is a large multinational company, with its headquarter and core operations in India. Tata Steel is now the world’s sixth largest Steel Company. Asia’s first integrated steel plant and India’s largest integrated private sector steel company, it is now the world’s second most geographically diversified steel producer.

Tata Steel has operation in 26 countries and commercial presence in over fifty countries. Major steel making operations are in

1. Jamshedpur , india 2. Ijmuiden, Netherlands3. Port Talbot, UK 4. Thailand5. Singapore

Tata Steel produces steel using a integrated steel-making concept, utilizing raw material like iron ore , coal , limestone etc. to produce hot metal . This hot metal is converted into steel through a steel- making process. This liquid steel is then cast and rolled into a variety of product.

Major operation division in India Main steel works Jamshedpur. tubes division Jamshedpur growth shop Jamshedpur agrico division Jamshedpur Ferro alloys and mineral division Orissa West bokaro mining division bokaro Jharia division dhanbad

Market served and primary products

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Tata group produces a range of products for global market and in particular Indian, European and fast growing Asian markets including a wide range of steel products used for transport , construction, automotive packaging and other industries.

Tata Steel limited serves mainly the domestic Indian market. In india production is segmented into two main catagories – flat and long product at a balance approximately 67% and 33% of production respectively. Whilst the focus of business is steel making the company also seek to maintain control downstream and upstream operations and control its business environment, with raw material production, transportation and processing operations.

Table 2.1

Products Descriptions Market segment key customersLong product Rebars Large construction

project , individual houses

L&T, DLF , HCC Individual building

High and low carbon wires roads.

Wire drawing industries for applications like tyre beads, construction , electrodes etc.

Wire division , bansal , miki wires

Flat products Hot and cold rolled sheets , hot and cold rolled coils, galvanized coils and sheets , hot rolled plates.

Auto , construction industries, general engineering , appliances, industry and housing applications.

Tata motors, ashok Leyland, Toyota,Honda, ford, Maruti, Hyundai , Bajaj , TVS

Semi finished goods

Billets , slabs

Tubes Standard pipes , precisions tubes, closed structure Bearing wires Rolled rings, forged rings, machine rings and coastal steel

wires.Minerals Coal and coke , iron ore and chorme concentrate Branded product Tata shaktee GC sheets , Tata tiscon construction rods, Tata

pipes , Tata bearing, Tata wirons , Tata agrico , Tata structura Tata Steel

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Parent Company Tata Group

Category Iron & steel

Sector Industrial products

Tagline/ Slogan Values stronger than steel

USPThe top ten global steel companies with an annual crude steel capacity of over 28 million tonnes per annum

STP

SegmentStrip & long Steel products, Iron ore mining, Agricultural implements

Target Group Construction, automotive, infrastructure, capital goods

PositioningThe global steel industry benchmark for value creation and corporate citizenship

Competition

Competitors

1. SAIL

2. JSW Steel Ltd

3. Essar Steel Ltd

4. ArcelorMittal

5. POSCO

Customer of product

SWOT ANALYSIS OF TATA STEEL

Strength:- TATA STEEL

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1. Raises over 14 million tonnes of ores from its captive collieries, iron ore mines and quarries

2. Adaptability of company in the fast changing environment

3. Excellent integration with Corus which has more than 2000 metallurgists

4. Control over raw materials

5. Economies of scale

6. Strong backing of Tata brand name.7. Operations in 26 countries and a commercial presence in over 50 countries.

Weakness:-

1. Operational efficiency are not as good as international leaders

2. Slightly lagging in technological front

Opportunity:-

1. Newer technologies- The Corex process, The Hismelt process, Direct iron ore smelting

2. Public private partnership

3. Acquisition of coal blocks in Asia, Africa etc.

Threat:-

1. Rising coking coal prices

2. India is plagued with violent agitation against land acquisition

3. Government & regulatory norms

4. International competition

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CHAPTER - 3

Activity performed during the internship

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Week 1

We as an intern attended our 6weeks training program in the well know industry TATA STEEL. Attended 3days vocational training with around 300 students of different colleges and learnt about the company and its operation.

Exposure to the safety issues were given for the next two days at savak nanavati technology institute. Entry passes were issued for the entry to the company which were being verified on three different gates. We were provided with safety shoe, helmet, and glasses. It not only cares about it permanents employee but it cares for their visitors even.

eg: When Aditaya Birla chemical marketing manages comes to the company for making a marketing deal a one day gate pass is provided to them.

Though there are more than 7 days to enter tata steel plant of tata steel but still the gate pass of the vehicles are made. There are few permanent vehicles that move every day in Tata steel.

Eg: the vehicle bringing the grocery item for the canteen for that van the gate pass is made.

There are railway tracks inside the company to carry raw materials from one department to other. So while the train moves there the is voice that announces “Sawdhan tarin aa rhe hai”. This is the alert message passed on to all the moving buses carrying the employees to their destination the unskilled workers moving with bicycle and the person moving with their private vechiles.

Everyday there was meeting from 8:30am to 9:00am this was the process of the entire department in Tata steel. In the department of CLM the sr.manger used to give solution. The associate manager was asked to type mail for the Hr. Senior Manger so that it gives them a better practice for the organization.

Week 2

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The projected was allotted in the HR department and in sub division of HR department of contract labour management. The work that this department carries is the issue on the basic level of the contracts and problems faced by the workers at tata steel. One the day one we the intern were called for a informal meeting with the other employees to just introduce ourselves and make our self comfortable with the employees so that we can move in the flow the working environment.

The staff combined of different culture but they were comfortable with each other. The where very cooperative helped one another in problem solving of different types.

To enhance our knowledge on the legal issues followed by tata steel. We were provided with the government format of both tata steel as well as government to go through it and have brief work idea how contract labour management department makes its decision and solves the issue of the workers.

Week 3

After the observation and brief study of the working style of the employees in tata steel we were comfortable with the contractors and the employee so we moved out for the different table works and everyday observation of different problems and solution which made us more active and enthusiastic in the work life so we were more motivated and the eagerness to do the work made us more active so we were capable of performing the work. The work assigned was to check the muster roll of the workers and their daily signature of their presence in the company. On the basis of worked they were allotted to such like the drivers, people working in the manufacturing company, people working in the construction.

According to the division of work first basic level work was to have a brief idea of the registration process and different forms field in the guidance of the government to come in contract with the firm of tata steel.

In case if the family member meet an accident while working in the company any member of the family where provided with any suitable job for them.

The next table worker was taken up as the “wage payment” it is the process for what the workers earn for themselves after serving or completing the assigned job. A contractor shall be responsible for payment of wages to each worker by the 7th of every month and such wages shall be paid before the expiry for such period. For contractors who have more than 1000 workmen, can make payment up to 10th of TATA STEEL

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every month. As per the DLC circular, cash payments should be done away with completely.

BONUS PAY-Annually, the CWR cell is also able to retrieve data on the bonus pay made by the vendors in the following manner For a particular vendor,(a) In a FY, how many contract workers have worked? (b) No. of workers who have worked for a minimum of 30 days.(c) List of names of workmen and number of days worked by each. (d)Calculation at 8.33% of Rs. 3500, upto a maximum wage of Rs. 10000.

Week - 4

The next work experience was full and final settlement of the worker who willing wants to leave the job and have submitted their reigning letter. Monthly generation of list of contract workers separated from a vendor since the previous month (On the 1st of every month). During full and final settlement, the company must ensure that the parting vendor must have complied and fulfilled the following:

Monthly wage payment of each and every vendor ; PF compliance; ESI compliance; Bonus payment; Leave payment; Gratuity( if worked for a continuous time period of 5 years); Retrenchment (for a period of 240 days); Notice pay -If worked for a period of: (a) 26 to 240 days, a pay for 3 days. (b) Greater than 240 days, a notice pay of 26 days.

Week – 5

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It is compulsory for the workers below 15000 to have the provisory fund account. So that the workers keep the family in safer hand. If at all they meet with any accident that amount will be helpful for their families. The employees earning more than 1500 should employee state insurance (ESIC). The PF is even the part of the wage payment it is compulsory for all the people connected with Tata steel should have a PF account and the amount is to been deducted according to the government norms as like PF contribution by employer & employee is 12% on the basic and DA. The last date of submission of PF contribution is 15 th of the next month.

Week – 6

After having a complete knowledge of the work process it was the time to make a final entry on the system by the help of information technology and to certify the vendors engaged with the company to make their entry and forward it to the higher authority to exceed their gate pass and permit them to process their work in various department.

In final week for the last two days we moved forward with the final report we prepared on the basis of our day to day observation for the 60days. Till the of the day I was supported by our guide and the staff members of the company.

During our the training period the guards were friendly with us and each day they welcomed us to the plant with the warm welcome smile.

As working in the contract worker cell department. I came through much process that we don’t even go through the management books.

It’s a good learning period for me an intern.

CONTRACT LABOUR MANAGEMENT TATA STEEL

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Contract labour management is a growing area in most of the organizations. Today, it is almost unavoidable for any principal employer not to avail any services of contract workers. However, due to compliance issues, safety and security issues, accidents, etc, the entire contract labor management process is becoming a complex subject for departments like HR, securities and facilities, etc.

Tata steel has engaged nearly 680 contractors till date and has an IT enabled contractor’s cell. The Contract Labour management System is one such effort to ensure the welfare of the Contract labour engaged, as well as to strive towards 100% security.

This project was conducted mainly to find out the gaps in the act in Tata steel. Whether it serves the purpose of the contractor in accordance with the act.

Principle employer

It is mandatory on the part of the principal employer to seek registration under section 7 of the Act . the act makes it obligatory on the part of every contractor not to undertake any work through contract labour without obtaining the valid licence. Duties to be maintained prescribed in register and records are

(a) Muster roll(b)Register of wages(c) Register of deduction (d)Register of overtime(e) Register of fines (f) Register of advances (g)Wage slip.

APPLICABLE RULES AND ACT

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Contract Labour (regulation & abolition) Act 1970. Jharkhand Contract Labour (regulation & abolition) Rule 1972. The Payment of Bonus Act 1965. Industrial Dispute Act 1947. Bihar Factories Rule 1950. Payment of gratuity Act 1972. Employee provident fund and miscellaneous provident Act 1952. Employee State Insurance Act 1948. Minimum Wages Act 1948. Payment of Wages Act 1936.

Description of the Acts.

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Contract labour (regulation &abolition) Act 1970An act to regulate the employment of contract labour in certain establishments and to provide for the abolition in certain circumstances and for matters connected there with.

This act was passed to prevent the exploitation of contract labour but also introduce better conditions of work where contract labour is justified.

It is extended to whole of India. It shall come into force on such date as the central government may by notification in the official gazette, appoint and different dates may be appointed for different provisions of the act.

It is applied to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.

Jharkhand contract labour (regulation & abolition) rules 1972Jharkhand contract labour was made after the contract labour (regulation &

abolition) rules after the act for the labour welfare was designed. In exercise of the

power conferred under sub clause (b) clause – v of sub rules (2) of rule – 25 of the

Jharkhand contract labour (regulation and abolition) rules 1972, the commission of

labour, Jharkhand, Ranchi hereby specify the following rates of wages, holidays,

hours of work and condition of service for the workmen employed in the

establishment of following category of Principle Employers.

Factories Act 1948

The main objective of the Factories Act 1948 is to ensure adequately safety measure and to promote the health and welfare of the workers employed in factories. This Act covers all manufacturing processes and establishments falling within the definition of ‘factory’ as defined.

APPORVAL, LICENSING AND REGISTRATION OF FACTORIES

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(i) Submission of plan of any class or description of factories to the chief inspector or the state government.

(ii) Obtaining previous permission of the state government for the site on which factory is to be situated and for construction of any factory.

(iii) Nature of plans and specification and the authority certifying them.(iv) Registration and licensing of factories.

(a) MEASURES TO BE TAKEN BY FACTORIES FOR HEALTH, SAFETY AND WELFARE OF WORKERS.

(b) SPECIAL PROVISIONS RELATING TO HAZARDOUS PROCESSES.(c) WORKING HOURS OF ADULT.

PAYMENT OF BONUS ACT 1956

Minimum Bonus: 8.33% if salary or wages earned during accounting year or Rs.100 whichever is higher, whether or not the employer has any allocable surplus in the accounting year. Maximum Bonus: 20% of salary or wages only if allocable surplus exceeds the amount of minimum wages bonus payable under the act. Salary or wage calculation: Salary or wage exceeding Rs.3500: Rs.3500 Salary or wages less than Rs.10, 000: Actual Salary or wages: Basic + DA.

INDUSTRIAL DISPUTES ACT 1947

The Industrial Disputes Act 1947 extends to the whole of India and regulates Indian labour law so far as that concerns trade unions. It came into force April 1, 1947. The principal employer under the Act would be employee under the Industrial Disputes Act in certain circumstances, against who ‘Industrial Dispute’ be raised.

PAYMENT OF GRATUITY ACT 1972

The minimum years of service rendered by the workman must be 5 years. Payment of gratuity is applicable on termination, resignation or retirement. Wages for calculation are at 15 days’ wages for every completed year as if the month

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comprises of 26 days at the last drawn wages (Basic+DA). Calculation for seasonal worker will be done at 7 days’ wages for every completed year of service.

EMPLOYEE’S PROVIDENT FUND & MISCELLANEOUS PROVISION ACT 1952

PF contribution by employer & employee is 12% on the basic and DA. Every employee drawing wages and DA upto Rs 15000 will be eligible to become a member. In case of contractor, it is the responsibility of the principal employer to ensure that provisions of this act are compiled by Contractors. The last date of submission of PF contribution is 15th of the next month.

EMPLOYEE’S STATE INSURANCE ACT 1948

Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to become a member. Company should inform within 48 hours to the Factory Inspector and ESIC inspector if any fatal accident (which can be result into death); If the person fails to inform it is being created as a death or murder against a Company. Submission Contribution 6.5% of Basic + DA, 1.75% deduct from Employee Salary on Basic + DA, 4.75% employer contribution.

MINIMUM WAGES ACT 1948

This act provides that the principal employer will ensure that the workers engaged through contractor will be paid wages not less than the minimum rate of wages fixed under the Minimum Wages Act.

PAYMENT OF WAGES ACT 1936

The wage of the workers are decided by the government Jharkhand contract labour (regulation & abolition ) rules 1972.The wage period is fixed by the government of India and steel follows the same rule which is set by the government. The DA and overtime payment is made accordingly to workers time period.

Applicability of Acts & Rules pertaining to Tata Steel work

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(i) Payment of bonus: - it is an act which is given in the financial year. Less than 30days is not eligible.

(a) Minimum Bonus: 8.33% if salary or wages earned during accounting year or Rs.100 whichever is higher, whether or not the employer has any allocable surplus in the accounting year.

(b)Maximum Bonus: 20% of salary or wages only if allocable surplus exceeds the amount of minimum wages bonus payable under the act.

(ii) Industrial dispute: - it generally occurs while paying of PF or ESIC and during the grievance or when the person meets with the accident it is the companies responsibility to look after it.

(iii) Payment of gratuity: - if any worker continuously works for 5years. He / she will be given the gratuity. If the worker works for 240 days in 3 years it will be multiplied 15days x the current year.

(iv) Employee provident fund and miscellaneous provision act 1952: - Every employee drawing wages and DA upto Rs 15000 will be eligible to become a member. The last date of submission of PF contribution is 15th of the next month. The bank copy of the transaction is given with the total amount. The bank gives the copy with the certification which is shown in the department to verify the amount paid for the month.

(v) Employee state insurance act 1948:- Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to become a member. Monthly Challan – 21st of the next month is the last date of submission Contribution 6.5% of Basic + DA, 1.75% deduct from Employee Salary on Basic + DA, 4.75% employer contribution.

(vi) Minimum wage: - To make payment of overtime in excess of number of hours constituting normal working day at the rate fixed under the Act

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or any other law whichever is higher. Any contract allowing payment of wages less than minimum is null and void. Minimum wages must be paid through banks.

The minimum wages and VDA in the state of Jharkhand for all categories of contract workers w.e.f 01.04.2015:

Table no.1.2

DEGREE OF SKILLS

BASIC VDA TOTAL

UNSKILLED 147.86 67.57 215.43SEMI SKILLED 156.65 67.57 224.22SKILLED 190 75.19 265.19HIGHLY SKILLED 230.25 90.89 321.14

(vii) Payment of wages act 1936:- The wage period is fixed by the government of India and steel follows the same rule which is set by the government. On national holiday the workers are paid for those days as it not a leave either it is a holiday.

UNDER RULE 25

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CONDITION OF SERVICE OF WORKMEN OF THE

CONTRACTOR.

It is expedient to specify rates of wages holiday’s hours of work and condition of

service of the workmen employed by contractors who do not perform the same

kind of work as the workmen directly employed by the principle employer of an

establishment.

JHARKHAND CONTRACT LABOUR (REGULATION AND

ABOLITION ) RULES 1972

In exercise of the power conferred under sub clause (b) clause – v of sub rules (2)

of rule – 25 of the Jharkhand contract labour (regulation and abolition) rules 1972,

the commission of labour, Jharkhand, Ranchi hereby specify the following rates of

wages, holidays, hours of work and condition of service for the workmen

employed in the establishment of following category of Principle Employers.

1. Employment card: - the contract labour employed by a contractor shall be

provided with an employment card in form xiv as per the provisions contained in

the rule 76 indicated there in the name and address of the workman, fathers name,

serial number in the register of workman employed the date of appointment

designation wages period and rates and his residential address.

2. Working hours :- (a) no adults workman shall be required to work for more

than 8hrs in any day and 48hrs in a week.

(b) No young person who has not completed 18yrs of age shall be required to work

for more than 7hours in a day and 42hrs in a week.

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3. Bar on employment of female :- no female shall be required to work after 7:00

P.M or before 6:00 am.

4. Bar on employment of child labour: - no child below the age of 15 years shall

be allowed to work as contract labour.

5. Rest interval: - no workman shall be required to work for more than 5hours in

any days he has an interval of rest for at least half-an-hour.

6. Extra wages for overtime: - where a contract labour is required to work for

more than 9hrs in any day excluding the period of rest interval, he shall be entitled

to wages at the rates of twice his ordinary rate of wages.

7. national and festival holidays :- (a) every workman employed by the

contractor shall be entitled to 8 holidays in a calendar year with wages which shall

include 26th January , 15th august , 2nd October and 1st may. The remaining 4

holidays will be fixed by mutual discussion between the contractor and his labour

each year by the end of November. The list of holidays so decided will duly and

prominently be displayed by the contractor. A copy of the list of holiday for the

following year shall be furnished by the contractor to the local inspector of the

region and the deputy labour commissioner by 5th December each year.

(b) A workmen would be entitled to the festival and national holidays as per sub-

clause if he has put at least 15days of work during the calendar year and has been

on roll a day prior to the holiday.

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8) Leave with wages: - every workman who has worked under a contractor during

the calendar year shall be allowed leave with wages for the number of days

calculated at the rate of –

(i) if an adult one day for every 20 day of actual work performed by him.

(ii) If a young person one day for every 15days of actual work performed by him.

(a) A workman may at any time apply in writing to the contractor or his authority

representative not less than 7 days before the date on which he wishes his leave to

begin to take all the leave or any portion thereof allowable to him during the

calendar year.

Provided that the total number of days of leave that may be carried forward to a

succeeding year shall not exceed 30 days. The contractor shall pay the wages

whenever the contractor labour quits the employment.

(b) a workman may, at any time apply in writing to the contractor or his authorized

representative, not less than 7 days before the date on which he wishes his leave to

begin to take all the leave or any portion thereof allowable to him during the

calendar year.

(c) Every employee for the period of leave allowed under this section shall be paid

at a rate equal to the daily average of his total full time earning for the days on

which he worked during the month immediately preceding his leave exclusive of

any overtime, but inclusive of D.A.

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9. Wage rate :-

(i) where no rates have been regulated by way of agreement, settlement or

awards for such employment application for any category or class of

workmen the contractor shall pay following wages

Un-skilled:- 3808

Semi-skilled:- 4006

Skilled: - 4873

Highly skilled: - 5920

(ii) Where to arrive at daily wages to monthly shall be divided by 26 , which

is inclusive of holiday wages.

(iii) The contractor shall pay variable dearness allowance of the workers on

the basis of notification issued by the department of labour employment

and training from time to time in this regard on the basis of increase or

decrease in all Indian consumer price index as per the provisions

contained is section-3 and section-5 of the Minimum Wages Act 1948.

(iv) If statutory wages or wages regulatory as per award /settlement/

agreement/ which are in force are more beneficial to the workermen, the

worker shall be entitled.

(v) Skilled worker is one which involves skill or competence acquired

through experience on the job or through training as an apprentice in a

technical or vocational institute and performance of which calls for

initiative and judgment.

Highly skilled work means work which calls for the degree of performance of certain task acquired through extensive technical or professional training or practical work experience for long years and also required of a worker to assume full responsibility for the judgment of decision in involved in the execution of these.

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CHAPTER -4

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Key learning element

As working in contract labour management department. First thing what I learnt was.

How to work in the corporate world. To be punctual on time for the work you are paid for. To have respect for all the colleagues either that person is elder to you or

younger to you. There was no culture difference. Cooperative and motivating for each other. To be polite and humble to customers. To follow up the rules and regulation. On what basis the amount to deducted on PF and ESIC from the workers and

employees accounts. What are the benefits that the worker should get when they leave the

organization with their own willingness. The working hours for the workers that is made according the government

rule and regulation. On what basis the bonus is paid. How the grievance handling process is done. Leave and wage payment and overtime payment made to the workers. The unskilled workers should be well trained in terms of paper work as they

are not so educated.

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Gaps reviewed in the act of Tata steel Table 4.1

Sl no Act Applicability Gaps1. Obtaining certification for

registration. Under contract labour act (regulation & abolition) 1970

Tata steel in form no 2 is the application by the principal employer. Application for regist ration of establishment employing contact labour. It is certificate which the government issues to register them under any contract. The name and address and date of establishment. The maximum number of worker to be employed. The type of business. (trade, industry ,manufacturing)

There is no gap in this form

2. Amendment in registration of certificate.Under contract labour act (regulation & abolition ) 1970

Tata steel keeps in track of the change in the form no2 annually there is even a change required in an emergency case.

After a immediate change in form II should be amended.

3. Register of contractor Under contract labour act (regulation & abolition ) 1970

In this format the contactor gets the government permission. To come in contract with any industry.

At present IT format is going on so there is need of approval for maintaining the appropriate

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format from the appropriate authority.

4. Wage certificationJharkhand contract labour (regulation & abolition ) 1972

In wage certification the amount is matched with the muster role.

The payment is done through the bank it the online payment system. Few contract workers getting their wages in cash. Cash payment needs to eliminate as the employer doesn’t have the exact format of in their workplace this makes a problem for worker who is working under them.

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RESPONSIBILITY OF EMPLOYER (contractor) Employer having invested money on running the organization through their own source or by joint venture or through loans obtained from financial institution, it is natural for them to earn profit, the result is the exploitation of Human Resource and the reduction in quality of the produce under the wrong option of More production at a low cost. The employer gets themselves register through the government under the Act. Then at first they have to register themselves in the procurement division. Then they come to contract worker relation for registration they fill the format of PF, ESIC letter and copy of work Oder in which field the employer wants to engage their workers. After that in the department of contract worker relation cell they are resisted in the system. After that they can apply for the gate pass. If at all employer have more than 9 members the employer have to take the labour license. Ones the labour license they engage their works in the department. The muster roll is even checked for how many days the worker worked in the department they were engaged. After the payment starts they again come back to contractor cell for the verification of the paper work whether the workers are paid according to the law and act. The department even checks the full and final settlement for the person who willing reigned from the job.

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Gaps reviewed with the contractors at tata steel

Table 4.2

Sl.no Act Applicability Gap1. Vendor registration

It’s come under certification for registration. Under labour contract (regulation & abolition ) act 1970

The vendor registers themselves under Tata steel through the government.

There is no gap in this form.

2. Labour license it is Under labour contract (regulation & abolition ) act 1970

This is done when an employer engages more than 9 workers a particular job.

There is no gap in this form.

3. Employment of contract worker.Under labour contract (regulation & abolition ) act 1970

During audit tata steel representative verify the entire contract worker received their card or not.

Many employers don’t give the attendance ticket to the worker.

4. Wage payment under Jharkhand contract labour (regulation & abolition ) 1972

Tata steel gives this Cash payment should be eliminated.

5. Provident fund under Employee’s provident fund & miscellaneous

Every employee drawing wages and DA upto Rs 15000 will be eligible to become a member. The last date of

Tata steel should ensure the delivery of annual PF statement to the

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provision act 1952 under Jharkhand contract labour (regulation & abolition ) 1972

submission of PF contribution is 15th of the next month. The bank copy of the transaction is given with the total amount. The bank gives the copy with the certification which is shown in the department to verify the amount paid for the month.

entire contract worker.

6. Employee state insurance it under the employee state insurance Act 1948under Jharkhand contract labour (regulation & abolition ) 1972

Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to become a member.

the principal employer(Contractor) should properly educate about the ESIC card so that all contract worker and their family can get the benefits from ESIC.

7. Bonus it is under the payment of bonus Act 1965 under Jharkhand contract labour (regulation & abolition ) 1972

It is the basic + DA that is equal for both employee and employer. It is a different format then the regular format of the engaged workers. It is in the format of no. of employers engaged; no of employees who are eligible for bonus payment; no of employee for whom the bonus payment has been done ; no of employees whose name appears in form C.

There is no gap in this form.

8. Leave it is under the factories Act 1948under Jharkhand contract labour (regulation & abolition ) 1972

No of employees engaged in calendar year. No of employees eligible for leave in calendar year; no of employees not eligible for leave in calendar year; no of employee whose name appear in leave sheet. No of employee for whom leave payment was sheet during full

There is no gap in this form.

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and final settlement.9. Full and final

settlement It is under the act of industrial dispute. under Jharkhand contract labour (regulation & abolition ) 1972

Full and final settlement is the process in which the final payment of settlement of worker is done.

a robust system is required which ensures 100% compliance pertening to the full and final settlement.

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Conclusion

Tata steel is a robust company. As per contract labour (regulation & abolition) and Jharkhand contract labour (regulation & abolition) Act 1972 all the rules are followed in Tata steel.

But there is always a chance of improvement and the gaps to be fulfilled so during my study I could study few gaps Tata steel could implementation and could manage the company in the better way.

As when there is a change in form II it should be amended in the system of Tata Steel. As it is the information technology world it should go hand in hand with the technology and can bring few changes in the system.

When it comes to the safety measure I personally feel this is the best company which takes care of its workers by all kinds of safety protections and equipments.

The unskilled workers should be trained well in regard their owner as contractors are not cheating them workers should be aware of the rules and regulation.

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Recommendation

This is the gaps that can be filled.

Many employers don’t return the attendance ticket to the worker so the company should make norm in the favor of the workers who are under the contractors.

Tata steel should ensure the delivery of annual PF statement to the entire contract worker.

The principal employer (Contractor) should properly educate about the ESIC card so that all contract worker and their family can get the benefits from ESIC.

A system is required which ensures 100% compliance pertaining to the full and final settlement of the wage.

Cash payment should be eliminated. Tata steel should train its unskilled worker in a better way so that they are

aware of the rules and regulation that are made for contractor.

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Bibliography

BOOKS

1) Dr. Sharma J. P.( 2009) factories act 1948 2nd edition vol 2

2) Kharbanda & kharbanda (2013) factories act 1948 4th edition

vol 6

3) Khandelwal . K .K Commentary and digest on factories act 1948 (2007) 1nd edition

4) Srivastva .K.D Commentaries on factories act 1948 (2013)5th edition (reprint)

WEBSITES

1) Sustainability People Development Human Rights, Diversity & Opportunity (2002) www.project on people development

2) Tata steel launches technical training programmers to develop employability November 27 (2006) https://www. Tataemployability.htm

3) Iron industry in India since 1839 march 14 (2000) www.tatasteel iron company, jamshedpur.htm

4) http://en.www.Wikipedia , thefreeencyclopedia.htm

5) Corporate social responsibility (2009) 102 nd Annual Report www.tatasteel 2008-2009.htm

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6) TataSteelInstitutesTrainingCentresRuralDevelopmentSocietyEducationProgram (2001) http://www.tatasteelindia.com/products-and-processes/market-segments/consumer-goods.asp

7) TataSteelMiningOperations.htm

GlossaryHR – human resource

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CLM- contract labour management

ESIC – employee state insurance

PF – provisory fund

WTO- world trade organization

IT- information technology

HBIDRI - Hot Briquetted Iron-Direct Reduced Iron

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