INTERNSHIP AT TATA STEEL, JAMSHEDPUR: CONTRACT LABOUR MANAGEMENT

Internship report submitted

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

MASTER OF BUSINESS ADMINISTRATIONBy

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 “Internship at Tata steel, Jamshedpur - CONTRACT LABOUR

MANAGEMENT” 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 Ms. Archana kumari , university Id.No.14MBA004 worked under my

supervision for the Internship Report titled “Internship at Tata steel, Jamshedpur - CONTRACT

LABOUR MANAGEMENT” 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

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ACKNOWLEDGEMENTS

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

internship 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.

Further I would like to thank to my faculty guide for her valuable support and advices

which helped me a lot in completing this project successfully.

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TABLE OF CONTENTS

Chapter Content Page

Number

1. 1.1 Executive summary 8

1.2Introduction 10

1.3Industry profile 11-23

1.4 Objectives of Internship 24

2. 2.1 company profile 26

2.2 products/ services offered

services offered

services offered

27-28

2.3 customers of product 29

2.4 SWOT analysis 30-31

3 3.1 Work performed during the intern 33-36

3.2Contract Labour Management 373.3Applicable Rules & Act 38

3.4 Description of the Acts. 39-41

3.5 Applicability of Acts & Rules pertaining to Tata Steel work 42-43

3.6Condition of service Of Workmen of the Contractor 44-46

4 4.1Key learning outcomes 48

4.2Gaps identified in the applicability of the Contract labour act at Tata steel 49-50

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4. 3 Responsibility of employer (contractor) 51

4.4Gaps identified with the contractors at Tata steel 52-54

4.5Conclusion 55

5 Recommendation 56

6 Bibliography 57

7 Glossary 58

LIST OF TABLES

Table No. Table Name Page Number

Table 1.1 Primary products and their customers 27-29

Table 1.2 Gaps identified in the applicability of Tata steel 49-50

Table 1.3 Gaps reviewed with the contractors at tata steel 52-54

EXECUTIVE SUMMARY

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Internship is undertaken in order to get practical exposure to the real time working

environment. Internship at Tata Steel, Jamshedpur gave rich insights with reference to the

corporate sector. The area of internship was contract labour management.

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. Working in contract worker relation cell provided knowledge about the

necessary norms to be complied with. During the internship period , the intern made an attempt

to find the gaps in implementation of the act in Tata steel. There are different rules and

regulations that the contractors have to follow when they come in contract with Tata steel.

Internship helped in getting knowledge of the work process of the contract labour management.

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CHAPTER -1

INTRODUCTION

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“Practical knowledge is far better than theoretical.” Building a strong base of practical

knowledge is possible through internship. Students all have their educational experience in

common. Who stands out to employers are those students who also have practical experience by

the time they graduate. This automatically makes them more marketable; as they may require

less training and are assumed to be able to handle more responsibilities. In addition to the

specialized skills of the field, transferable skills are generally required at any job e.g.

communication/interpersonal skills, computer proficiency, and team work.

Exploring is a very important part of the academic process, and gaining a work

experience is a great way. A student intern surrounded by professionals in the industry has an

opportunity to learn from everyone around them and can get the feel of corporate environment.

The intern has done her internship at Tata Steel, Jamshedpur. She worked in contract

worker cell HR department. The main objective of the internship was to get a practical exposure

to the company environment and learn the dynamics of functioning of company.

INDUSTRY PROFILE

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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.

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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 Jamshedpur. The Company’s captive coal mines are located at Jharia

and West Bokaro (Jharkhand).

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.

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South East Asian Operations

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.

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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.

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.

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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 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.

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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

SUPPLY OF STEEL IN THE INDIAN MARKET

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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.

MAJOR PLAYERS OF STEEL IN INDIA:

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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

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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 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

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carrying out Capital repairs and Rebuilding work including hot repairs of Coke Ovens and Blast

Furnaces and other allied areas of Integrated Steel Plants.

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.

(B)ESSAR STEEL LTD.

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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.

(C) JSW STEEL LTD.

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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.

Energy supply:

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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,

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

Japan.

1. 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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OBJECTIVES OF INTERNSHIP

• To get practical exposure to the corporate sector

• To gain an insight into the functioning of the company, work culture, company policies

and procedures, etc.

• To learn business etiquette and enhance communication and inter-personal skills

• To attain a clear understanding of Contract labour act.

• To find the gaps in regard to application of contract labour act at Tata steel.

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CHAPTER -2

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COMPANY PROFILE

Tata 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, Netherlands

3. Port Talbot, UK

4. Thailand

5. 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

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• Ferro alloys and mineral division Orissa

• West bokaro mining division bokaro

• Jharia division dhanbad

Market served and primary products

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

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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 , slabsTubes 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 STEELPage 28

Tata Steel

Parent Company Tata Group

Category Iron & steel

Sector Industrial products

Tagline/ Slogan Values stronger than steel

USP

The top ten global steel companies with an annual crude steel

capacity of over 28 million tonnes per annum

STP

Segment

Strip & long Steel products, Iron ore mining, Agricultural

implements

Target Group Construction, automotive, infrastructure, capital goods

Positioning

The 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

SWOT ANALYSIS OF TATA STEEL

Strengths:-

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.

Weaknesses:-

1. Operational efficiency are not as good as international leaders

2. Slightly lagging in technological front

Opportunities:-

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.

Threats:-

TATA STEELPage 29

1. Rising coking coal prices

2. India is plagued with violent agitation against land acquisition

3. Government & regulatory norms

4. International competition

TATA STEELPage 30

CHAPTER - 3

TATA STEELPage 31

Activities performed during the internship

Week 1

As an intern attended 6 weeks internship program in the well known company TATA STEEL.

Attended 3 days vocational training with around 300 students of different colleges and learnt

about the company and its operations.

Exposure to the safety issues was given for the next two days at savak nanavati technology

institute. Entry passes issued for the entry to the company and verification of passes was done

different gates. Safety shoes, helmet, and glasses were provided . It not only cares about it

permanent employees 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 7 different entry points with the tight rules the gate pass verification of the

individual people vehicles was mandatory to be done.

Eg: the vehicle bringing the grocery item for the canteen even had their passes accordingly.

There are railway tracks inside the company to carry raw materials from one department to

other. So while the train moves there 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 persons moving in their private vehicles.

Everyday there was meeting from 8:30am to 9:00am .

Week 2

The project 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. On day one the interns were called

TATA STEELPage 32

for an informal meeting with other employees to just introduce ourselves and make our self

comfortable with the employees so that we can move in the the working environment.

Though the staff are from different cultures but they were comfortable with each other. They

were 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

literature to go through it and have brief work idea how contract labour management department

makes its decisions 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 employees 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.

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 was provided with any suitable job for them.

A contractor shall be responsible for payment of wages to each worker by the 7 th 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 every month. As per the DLC circular,

cash payments should be done away with completely.

TATA STEELPage 33

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 learning experience was final settlement of the workers who wants to leave the job and

have submitted their resignation 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

It is compulsory for the workers below Rs.15000 to have the provident fund account. So that the

workers keep the family in safer hands. 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 15th of the next month.

TATA STEELPage 34

Week – 6

After having a complete knowledge of the work process it was the time to make a final entry on

the system with 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.

TATA STEELPage 35

CONTRACT LABOUR MANAGEMENT

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.

TATA STEELPage 36

APPLICABLE RULES AND ACTS

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.

TATA STEELPage 37

Description of the Acts.

Contract labour (regulation &abolition) Act 1970

An 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 1972

Jharkhand 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.

TATA STEELPage 38

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

(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

TATA STEELPage 39

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 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

TATA STEELPage 40

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

(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.

TATA STEELPage 41

(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 15 th 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 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

TATA STEELPage 42

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

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

TATA STEELPage 43

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.

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.

TATA STEELPage 44

(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.

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.

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

TATA STEELPage 45

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.

TATA STEELPage 46

CHAPTER -4

Key learning outcomes

The internship has provided good learning outcomes which include:

• Practical understanding of corporate environment

• Importance of punctuality and time management

TATA STEELPage 47

• Enhanced inter-personal skills and learnt how to deal with seniors and colleagues

• Learnt team work

• Learnt the applicability of contract labour act

• Learnt on what basis the amount to be deducted on PF and ESIC from the workers and

employees’ accounts.

• Understood the benefits that the worker should get when they leave the organization.

• Gained an insight in work culture

• Learnt the basis of bonus payment

• Got an understanding of the grievance handling process.

• Understood leaves, wage payment and overtime payment made to the workers.

TATA STEELPage 48

Gaps identified in the applicability of the Contract labour act at 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.

At present IT format is

going on so there is

need of approval for

TATA STEELPage 49

To come in contract with

any industry.

maintaining the

appropriate format

from the appropriate

authority. 4. Wage certification

Jharkhand 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.

TATA STEELPage 50

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.

TATA STEELPage 51

Gaps identified 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

provision act 1952

under Jharkhand

contract labour

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

Tata steel should ensure

the delivery of annual

PF statement to the

entire contract worker.

TATA STEELPage 52

(regulation &

abolition ) 1972

amount. The bank gives the copy

with the certification which is shown

in the department to verify the

amount paid for the month.6. Employee state

insurance it under the

employee state

insurance Act 1948

under 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 1948

under 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

There is no gap in this

form.

TATA STEELPage 53

during full 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.

Conclusion

TATA STEELPage 54

Tata steel is a robust company. As per contract labour (regulation & abolition) and Jharkhand

contract labour (regulation & abolition) Act 1972, majority of the rules are followed in Tata

steel. During my internship I have identified few gaps with reference to the applicability of the

act. In order to ensure that contractors are not cheating the workers, they should be made aware

of the rules and regulations.

On the whole internship was a good learning experience and it supplemented theoretical

knowledge and gave insights for the future.

Recommendations:

TATA STEELPage 55

In order to bridge the gaps the following recommendations are made:

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 all contract workers.

The principal employer (Contractor) should properly educate about the ESIC card so that

all contract workers 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 workers in a better way so that they are aware of the

rules and regulations that are made for contractor.

TATA STEELPage 56

Bibliography

BOOKS

1) Kharbanda & Kharbanda (2013). Factories act 1948, 4th edition, Vol 6.

2) Khandelwal . K .K.(2007). Commentary on factories act. 1st edition.

3) Sharma J. P.( 2009). Factories act 1948, 2nd edition, Vol 2 .

4) Srivastava .K.D. (2013)Commentaries on factories act 1948. 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) retrieved from https://www. Tataemployability.html.

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

6)TataSteelInstitutesTrainingCentresRuralDevelopmentSocietyEducationProgram(2001)

http://www.tatasteelindia.com/products-and-processes/market-segments/consumer-goods.asp

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Glossary

HR – Human Resource

CLM- Contract Labour Management

ESIC – Employee State Insurance

PF – Provident Fund

WTO- World Trade Organization

IT- Information Technology

HBIDRI - Hot Briquetted Iron-Direct Reduced Iron

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