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   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

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

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

EMPLOYMENT

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

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

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

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 Kannan Devan and in Ethakota with Byraju Foundation

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

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

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%)

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

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

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

Employment

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

EMPLOYABILITY

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

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

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

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

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

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

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

Employability

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

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

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

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

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%

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

ENTREPRENEURSHIP

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

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

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.Bhimrao

Ambedkar Cluster” and got its first order for 1700 school bags 

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

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

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

EDUCATION

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

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

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 %

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

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

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

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

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