According to union leaders, the strike so far has resulted in production loss of around 9,000 vehicles a month, but the output has come down to around 60 units today.
The agitation is being spearheaded by around 4,500 contract workers, around 600 of them women, with active support of a union. They are seeking higher wages.
When contacted, a Tata Motors spokesman denied the union's claim that there has been a halt in the production saying the reports on production being stalled are "speculative and baseless". He also said the union leading the strike is a only a breakaway faction.
"There is no halt in production as is being claimed by a union that is only a breakaway faction. They are inciting and misguiding others, including the media. The majority of the union understands the issue and is working in alignment with the management to resolve the same at the earliest," the company said in a statement.
The company further claimed that protests are being staged by a section of temporary workers, who are being instigated by some vested interests. Contrary to reports, permanent employees are working normally to ensure production.
"The problem arose due to a technical error in their payment slips, which led to the payment being less than what they were entitled to. This was later resolved and the payment was made.
"However, this section of workers are protesting and are now demanding to make them permanent workers and give other perks of the permanent staff. The management has been in constantly holding dialogues with them and trying to resolve the same at the earliest," the company said.
The company further said that production is going on as per schedule as the management has taken remedial steps to ensure that production is close to the requirements and in line with the stringent quality measures and standards.
But the union leaders spearheading the strike claimed that they are the legitimate union. They told PTI that the management has brought in over 1,000 contract workers to help in production, thereby compromising with the product quality.
The union leaders also claimed they rejected an offer of regularising 200 temporary workers annually seeking least 500 of them should be made permanent workers. They also said the talks failed to resolve the deadlock.
The unions have been on a sit-in since Tuesday, protesting against non-payment of revised three-year wage agreement signed with the permanent workers' union early last month. These workers include around 600 women.
The Jamshedpur plant produces about 9,000 commercial vehicles a month, with a daily production averaging 300 units, in three shifts.
As per union, while around 4,500 permanent workers at the plant were given a wage hike of Rs 12,500 per month (15 per cent and 13 per cent for each year) the temporary workers' wages were given only Rs 1,500-2,000. But when the wages were paid early this week, the permanent workers got only Rs 6,500 extra whereas the temporary ones were paid as per the now-defunct agreement, they claimed.
A permanent worker on an average gets Rs 30,000-32,000 a month, while a temporary worker gets Rs 12,000-13,000, the sources said, adding that after workers launched the sit-in, the management sought six months to look into the issue, but the union was ready to give only three months.