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Tata Group and Affirmative Action for SC/ST communities

Tata Group and Affirmative Action for SC/ST communities. Presentation sections. Introduction Employment Employability Entrepreneurship Education Conclusions. Overview. Group initiative nearly 3 years old though company CSR activities and trusts’ work predates this initiative

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Tata Group and Affirmative Action for SC/ST communities

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  1. Tata Group and Affirmative Action for SC/ST communities

  2. Presentation sections • Introduction • Employment • Employability • Entrepreneurship • Education • Conclusions

  3. Overview • Group initiative nearly 3 years old though company CSR activities and trusts’ work predates this initiative • Tata Steel tribal welfare/Tata Coffee staffing • Trusts touch 3 million SC/ST population • Data in this review refers to India-based operations of 56 Tata companies • Incorporates almost all India operations

  4. Context • Starting point: PM call at 2006 CII session for voluntary AA by Industry to ward off legislation • Today: No visible threat of legislation in this Congress-led government but …… • Nationally, renewed focus on tribal well-being in context of land acquisition agitations and Maoist-led insurgency • Real reasons for AA remain: Inclusive growth and right thing to do • Last 12 months have been tough for business

  5. Three years of AA • Of 56 Tata companies, 47 have active agendas on four Es • Slides following provide an overview of best practices among companies

  6. Employment

  7. Employment • Employee data from 49 companies • Mostly as of Sep 30 2009 • Total employees: 245,342 • Total SC+ST employees: 20,714 (8.4%) • Did not declare: 50,517 (20.5%) • TCS 43,790 (45%), TTSL-M 1,165 (58%) • SC employees: 8,810 (3.6%) • Steel 2,588, NDPL 675, IHCL 565, TBSS 522, Tata AutoComp+ 519, Chemicals 454*, Trent 390 • ST employees: 11,904 (4.8%) • Coffee 7,444*, Steel 2,860, TACO+ 155, Ref. 148

  8. Employment • GCC-sanctioned AA policy: Positive discrimination, merit being equal • Companies most engaged with AA have: • Boosted numbers by embedding AA into strategy for growth • Notably Trent and Tata Business Support Services • Embedded spirit of positive discrimination into recruitment policies • Incentivized recruiters to boost SC/ST numbers • Made voluntary quantified commitment to increase numbers at recruitment and even promotions

  9. Employment: Notable examples • Trent: Steady increase through its investment in training • 246 last February/487 this Sept • Employing youth in large numbers from NGOs trained in retail trade by Trent • Tata Chemicals: Employment for 84 SC/ST youth at Rural BPOs through Uday Foundation • Many more in training

  10. Employment Tata Business Support Services • Increase from 374 in September 08 to 522 a year later through opening 6 BPOs in non-metros in partnership with: • Tata Power – Khopoli • Tata Steel – Jamshedpur • Tata Chemicals – Mithapur and Babrala • Also at Munnar with KannanDevan and in Ethakota with Byraju Foundation

  11. Employment Tata Ryerson • Induction after training with contractor: 15 taken last year, 15 in training • 5 ITI-pass candidates taken in for customized training for Pantnagar • Providing 18 youth employment with contractors after training as ambulance drivers, first aid assistants

  12. Employment Tata Capital • 5 of 28 GTs recruited (18%) are from the SC/ST communities • Offered placement consultants a preferential rate of 3% extra for placing SC/ST candidates • Employed over 10% employees from SC/ST communities for Housekeeping & Security Department

  13. Employment • TTSL initiatives: • Campus recruitment: 66 in last two years • Recruitment at entry level • Preference at COCO outlets • Target 5%; Achievement as of November: 7.5% • NDPL initiatives: • 5% relaxation for SC/ST candidates at recruitment • Preference for SC/ST candidates in departmental competitive examinations • Total promotions in last 18 months 274; SC/ST 46 (17%)

  14. Employment Tata Refractories: • Selection criteria relaxed for SC/ST candidates  in recruitment of fresh Graduate Engineers / Diploma Engineers / ITI pass etc. • Relaxation in minimum marks and height requirement for eligibility for interview: but no relaxation in merit criteria for selection • Of 11 SC/ST candidates recruited this year, 6 were beneficiaries of this relaxation

  15. Employment • Tata Power: Steady accretion in officer ranks through trainees from campus recruitment: • 08-09: 10/137; all absorbed • 09-10: 11/144 • Tata Motors: 30 trainees from Sakwar training school employed with dealers • Titan: Tie-up with CAP Foundation to train youth: first batch joined this year

  16. Employment • TTML: Sharp jump in SC/ST candidates recruited: • 2008-09: 19/287 – 6.6% • April 09 – Sept 09: 17/82 – 21% • Tinplate: 31 hires in 2008-09; 6 SC/ST • 20% of all hires against SC/ST share of 8% • TCE: 700 trainees from campuses for FY 10 of which 40 SC/ST • Tata Sky: 23 candidates recruited either on rolls or in third party from ITIs

  17. Employment Challenges • More companies weaving AA into growth strategy • Implementing spirit of positive discrimination • Incentivizing recruitment • Addressing asymmetry of information through website

  18. Employability

  19. Employability • Partnering ITIs to make them Centres of Excellence (Illustrative list): • Tata Motors – Nine – 2 Pune, Jamshedpur, Lucknow, Karnataka, 2 Uttarakhand, (Already operational)  Delhi & Gujarat (Under consideration) • Tata International – Tonkhurd, MP, near Dewas • Tata Power -- Two, in Thane & Mulund • NDPL- Dr CV Raman ITI in Delhi • Tata Chemicals – Dwarka • Indian Hotels – Three ongoing -- in Delhi, Sindhudurg & Hassan; three on the anvil • Tata Steel – Gopalpur and two others proposed • Tata Metaliks – Rangamati and Jhargram

  20. Employability Tata Refractories • Self Employment Skill Development Institute (SESDI) set up April 09 (Cost Rs. 1.6 Cr) for vocational training in in-demand trades like Masonry, Carpentry, Bar Bending, Plumbing, House Wiring & Motor Rewinding, Welding, TV & Electronics repairing, Mobile repairing etc. • Residential course – entirely free • 95 trained till date, 47 SC/ST

  21. Employability • Tata Steel: • 6-month course for entry into trade apprentice schemes in various companies • 260 trained since 2001, 103 placed in Steel, Motors etc • 6-month scheme for coaching for competitive exams • 42 trained in two batches; 5 Govt jobs, 5 contractual • 1 year course for community health providers • 212 women trained since 2004; 50 employed • 10 best CHP trainees trained for one year more to become Operation Theatre assistants

  22. Employability • Tata Steel: • Nurses training at XITE to prepare for admission into nursing • Started 08; 24 coached, 20 selected • Vocational training in six trades • Started 2001; 325 trained • Vocational training in 4 trades at Greenfield project sites in Kalinganagar • Also at Chhatisgarh and Manoharpur

  23. Employability • JUSCO: Training school drop-outs in association with CAP Foundation for careers in five trades: IT-enabled services, Hospitality Management, Customer Relations and Sales, Automobile Maintenance and White Goods Services • Total trainees 823; SC/ST 221 (26%) • Eight batches completed till date

  24. Employability Tinplate vocational training initiatives: • 11 students in CNC at RD Tata Institute • 16 students in plumbing at Sarojini Technical Institute • One year training for 181 ITI candidates • Midwifery training for tribal women • Training for tribal women at Salboni Village

  25. Employability Tata Sponge • Training for Fitter, Welder, Mechanical & wiremen trade for 7 SC/ST students • 6-month tailoring classes • Sponsorship for two-year course in Electrician trade for 4 ST students at three nearby ITIs

  26. Employability • Trent: • One-year diploma customized course in retail management for graduates at Mumbai University (Garware Institute) • Istbatch; 67/18 SC-ST, all employed • 2ndbatch; 60/ 10 SC-ST, all employed • 3rd batch: 25/7 SC-ST • Pact with 6 major NGOs --Don Bosco, Kherwadi Social Welfare Association, Dr. Reddy’s Foundation, YuvaPratisthan, Aarambh and Kotak Labs -- to train 200 underprivileged youth in Retail Operations

  27. Employability • Tata Chemicals: • Babrala unit recognised as ‘training provider’ by DGET; has trained 236 youth in 5 trades • Training 550 SC/ST youth to man rural BPO expansion in Mithapur & Babrala • Tata Projects: Training to create welders and fitters: 261 trained in last three years • Tata Communications: Skill training in IT-related fields for 105 SC/ST youth

  28. Employability • Telcon: Coaching classes for competitive exams • 85 trained in three batches since 2007 • Also: Setting up 3 training schools for operators and mechanics at units • 50% reservation for SC/ST candidates • Tata Motors: Mechanic Motor Vehicle Trade Course at Sakwar, Thane • Batch of around 15 each year • Tata International: Over 200 SC/ST trade apprentices in last two years

  29. Employability • TCS: 57 trained in three batches in Skill Development Programme in partnership with CII in Kolkata • Indian Hotels: Taj-Pratham tie-up for Hotel Operations Training Center set up in Khultabad, near Aurangabad (SC/ST pop. 35%) • 160 youth to be trained per year, currently 40 youth in training • One batch of 20 students has passed out and is placed in various western region Taj hotels • Rallis: Training youth to join rural BPOs

  30. Employability • Advinus: To address quality gap, has started a Finishing School for life sciences graduates. 25 students (5 SC) being trained for 6 months. • Mjunction: Ejunction – to spread computer and internet literacy • 13 batches since March 07 • 580 trained, including 81 SC/ST youth • 14% SC/ST against target of 25%

  31. Employability Challenges • Increase SC/ST numbers within vocational training programmes • Scale up – numbers and trades • Synergise company initiatives • Aggregate numbers and spend • Monitor and improve placement

  32. entrepreneurship

  33. Entrepreneurship: Notable examples • NDPL : • Sustained effort to develop vendors from Dalit Vyapar Association • 4 vendors included in vendors’ list • Of 4, one showed interest and met basic requirements and has been given order • Training neighbourhood electricians • 34 trained over two years

  34. Entrepreneurship • Tata Communications: 183 trained in entrepreneurship in partnership with EDI, Ahmedabad • Batches of 30 each in courses held in Mumbai, Pune, Ahmedabad, Nashik, Surat & Lonavla • Of 161 candidates who have completed training, 58 have already started their own ventures • Among candidates in first three modules, ~60% are already entrepreneurs

  35. Entrepreneurship Tata Chemicals • 224 SC candidates trained in year-long training in Rural Entrepreneurship Development Programme on trades like creating leather and Rexene bags, making soft toys, paper items and lamination • 100 trained in making Rexene bags; 50 created cluster fund from stipend to create TCSRD-REDP’s first business enterprise named “Dr.BhimraoAmbedkar Cluster” and got its first order for 1700 school bags

  36. Entrepreneurship Tata Sponge • 2 SC/ST entrepreneurs nurtured through contracts since April 07 • Both partnerships – one with 4 ST members and other with 2 SC members • Now getting orders from other industrial units • 1 more entrepreneur being developed • SHG for farming with power tiller • SHG for supplying notebooks • Training for income-generating schemes in pisciculture, soap-making etc

  37. Entrepreneurship • TTSL: Objective: 200 SC/ST PCO owners per year, starting 2008 • Status: 317 given in 2008-09; 83 in 2009-10 till now • Tata International: Support for 120 women SHGs for training on SOW (Stitch on Wood)/Leather Articles and Leather Footwear Components to make them self employed • TTML: 18 youth provided with PCO booths • Voltas: 7 SC/ST youth trained as entrepreneurs in house-keeping/gardening

  38. Entrepreneurship • Tinplate: Two ex-employees made into vendors; Trust set up to create ST makers of brick from fly ash • Tata Power: Contracts to ST contractors in Maithon • Tata Ryerson: Two SC/ST candidates engaged as suppliers for packaging and other miscellaneous jobs

  39. education

  40. Education: FAEA scholarships • 150 scholarships from 32 Group companies for college-level scholarships administered by Foundation for Academic Access and Excellence (FAEA) • 10 each: TTSL, NDPL, TACO+, Tata Tea • 5 each: Tata Power, TCS, Tata Sky, Tata Projects and TAL • Started with 100 last year; increased to 150 this year when corpus was found in surplus

  41. Education • 34 companies have 2,000+ scholarships for SC/ST students at school/college level • Tata Steel: Scholarships for ~600 SC/ST students in 4 categories Also • 100% scholarship for SC/ST employees’ children studying in in IIT • Trainees in Archery and other sports • Tata Motors: 150+ scholarships • Most in new scheme, Vidyadhanam, in Pune

  42. Education • NDPL initiatives • Scholarships of Rs 25,000 p.a. for students of Delhi College of Engineering • Scholarships for Rs 2,600 p.a. for students at four ITIs • Supporting 150+ SC/ST students in government schools with books, career counselling etc • Of 2008-09 batch nobody failed; 30% got >70 %

  43. Education • Tata Chemicals: 100 scholarships for SC girls from villages around Mithapur for courses in SNDT University, Mumbai • TTSL: Several initiatives including: • 6 scholarships of Rs 75,000 per annum for students at Symbiosis Institute of Telecom Management • 1 scholarship of Rs 25,000 pa for student at National Law College, Bhopal

  44. Education • Tata Sponge: Several initiatives including: • Sponsorship of fees for teachers taking special classes for SC/ST students • Support for students studying engineering, computer science • TTSL (M): 8 scholarships worth Rs.10,000 per SC/ST student of B.E. (Electronics & Telecommunication) course

  45. Conclusion: Way ahead • Greater need for appreciating why AA needs to be done in companies’ own long-term interest of sustained (inclusive) growth • Alternative: Legislation for reservations in private sector • More CEOs need to take leadership role; more HR departments to “own” AA

  46. Conclusion: Way ahead • Incorporation into company strategies • Alignment/incorporation into TBEM • Evolve system of recognition for companies demonstrating leadership • Greater traction by companies in translating the GCC’s AA Policy into actual practices in recruitment and in appointing vendors/suppliers

  47. Conclusion: Way ahead • Leverage Chairman’s views on voluntary commitment to sourcing certain percentage of products and services from SC/ST-owned companies, on lines of US AA practices • Overall: Robust start within Group but long way to go

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