Mumbai: Ousted Tata Group Chairman Cyrus Mistry today alleged that Ratan Tata "undermined a key reform" for introduction of an "incentive linked to productivity" at Tata Motors by asking for public support from the auto major's labour unions.
In a scathing attack on Ratan Tata, Mistry in a letter to the shareholders of group firms, that have called for an extraordinary general meeting to remove him as director, said the "key reform measure" was undermined for getting the trade union's support.
"Tata Motors was close to finalising for the first time, a productivity-based agreement with labour unions. Ratan Tata called the labour unions and asked the union leaders for their public support and in return undermined the introduction of the incentive linked to productivity," Mistry wrote.
The union leaders were paraded before the waiting media and Tata Motors did not get the benefit of a key work reform measure, he added. On November 13, ahead of Tata Motors' crucial board meeting, two unions of the company representing around 16,000 employees had written to the management expressing their support to Ratan Tata.
In a letter to Tata Motors CEO and Managing Director Guenter Butschek, Tata Motors Employees Union, Pune expressed "deep concern" over the rift between Tata Sons and the leadership of Tata group companies.
Similarly, in a letter to the plant head of Tata Motors' Jamshedpur unit, Telco Workers Union termed Ratan Tata as "our another great leader" and invoked his saying "if you want to walk fast walk alone but if you want to walk far walk together" to express their support.
Tata Motors has called an extraordinary general meeting (EGM) on December 22 to seek shareholders' approval for removing Cyrus Mistry and Nusli Wadia as directors of the company.
Ousted from Tata Sons, Mistry continues as Chairman of the group firms like Tata Motors and Tata Chemicals. Tata Motors has called an extraordinary general meeting (EGM) on December 22 to seek shareholders' approval for removing Cyrus Mistry and Nusli Wadia as directors of the company.
In a sudden and dramatic turn of events last month, Mistry was unceremoniously removed as the chairman of Tata Sons and replaced by his predecessor Ratan Tata in the interim, triggering a confrontation between the single-largest shareholder and the Tatas.
Returning to Tata Sons after the abrupt removal of Mistry, Ratan Tata has moved quickly to consolidate his grip over USD 103 billion salt-to-software group by seeking to remove the ousted chairman from boards of major group firms.
TCS has called an EGM on December 13, Indian Hotels Co Ltd on December 20, Tata Steel on December 21, Tata Motors on December 22, Tata Chemicals on December 23 and Tata Power on December 26 to seek Mistry's ouster as director.
Even after being removed as chairman of Tata Sons – the holding company of the Tata Group, Mistry continues to head the group's several listed firms including Tata Motors, Tata Power, Tata Steel and Tata Chemicals. Mumbai-based Tata Motors is India's largest automobile company, with consolidated revenues of Rs 2,75,561 crore in 2015-16.
