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Current Affairs

Protest against Tata Group

Date: 22 November 2021 Tags: Miscellaneous

Issue

The Tata Group of Companies in Jamshedpur is facing protests from members of Jharkhand Mukti Morcha (JMM) for planning to shift its office from the Jharkhand capital to Pune in Maharashtra.

 

Background

Many MLAs of the ruling party are involved in the blocking of the main entrance of the company in Jamshedpur. 

 

Details

  • The Tata Cummins, a joint venture of Tata Motors Limited and Cummins Inc., USA has planned to shift their offices to Pune.

  • The venture is involved in manufacturing of diesel engines. The party workers allege that there will be joblessness in the area and the state in particular.

 

Response by Tata Group

  • The Tata Cummins says that process of moving the Registered Office of the company from Jamshedpur to Pune was done to facilitate the ease of administrative operations with the corporate office. 

  • It says that the move will not impact the employment, revenue and other facilities for Jamshedpur and Jharkhand.

 

State’s concern

  • Once the administrative office is shifted, the legal jurisdiction will be Mumbai High Court and labour laws, recruitment policy (including job reservation policy) shall be governed by the prevailing laws of Maharashtra.

  • The recruitment policy and labour laws clause has created the tension. Once the laws of Maharashtra apply, the company will not be bound by Jharkhand law to allow 75 per cent of jobs to the locals. 

 

Economic implications of the move

  • Many local industries are dependent on the Tata Group for manufacturing and supplying ancillary components.

  • If the company moves away, industries depending on the company will be rendered useless. The long term implications will be disastrous.

 

Way ahead

People are demanding several other OEMs (Original Equipment Manufacturer) to be invited to set up industries to ensure diversification in jobs as well as competition.