Unknown Interesting Facts About Indian History: Jamshedpur and TATA Industries

During my fifth term at Indian Institute of Management, Ahmedabad (IIM-A), I chose to delve into the fascinating world of Business History, among which one topic particularly captured my interest - Jamshedpur: The Journey from a Typical Indian Village to the Country's First Planned Industrial City and Continual Legacy. Through extensive research and writing an essay of 3000 words on this topic, I discovered some intriguing facts that shed light on the dynamic relationship between labor, business, and social reform in India.

Netaji Subhas Chandra Bose and Tata Iron Steel Company (TISCO) Jamshedpur

During the mid-1920s, the Tata Steel factory at Jamshedpur faced significant challenges. Workers faced violent strikes due to disputes over payment and other demands. A pivotal figure in this turbulent period was Netaji Subhas Chandra Bose, who famously intervened to help resolve these labor conflicts.

Gandhi’s Influence and Labor Peace

In 1925, C. F. Andrews, also known as Deenabandhu, President of the Jamshedpur Labor Association (JLA), was persuaded to bring Mahatma Gandhi to the site to pacify the workers. Gandhi's message to the workers was a cornerstone of his approach to labor relations:

"It was my ambition to see one of the greatest if not the greatest – Indian enterprises in India and study the conditions of work here. But none of my activities is one-sided, and as my religion begins and ends with truth and nonviolence, my identification with labor does not conflict with my friendship with labor... And believe me throughout my public service of 35 years, though I have been obliged to range myself seemingly against capital, capitalists have in the end regarded me as their true friend. And in all humility I may say that I have come here also as a friend of the capitalists – a friend of the Tatas."

By this message, Gandhi aimed to bridge gaps between management and labor, fostering a sense of "Miniature Swaraj" or local autonomy within the industrial setting.

Role of Subhas Chandra Bose in Labor Strikes

The workers went on strike in 1928 over basic wages and increments, but management refused to negotiate. The JLA, which advocated for non-strike action, became ineffective, and the skilled workers turned to Subhas Chandra Bose for intervention. Bose, like Andrews, was sympathetic to the workers' demands and used his influence to pressure the Tatas to recognize the union and consider the workers' demands. His intervention was successful, leading to negotiations and agreements that included:

No strike pay One month's advance loan of wages to returning workers Rupees seven lakhs increment (up from five lakhs) The bonus scheme of ten lakhs Resolution of grievances

These measures brought a significant improvement in labor-management relations and were the last significant strikes at the Tata Steel plant.

Legacy of Netaji Subhas Chandra Bose

Subhas Chandra Bose went on to serve as the labor president for nine years until 1936-37. His unwavering and fearless efforts resulted in significant reforms and memorandums of understanding. Notably, a letter Bose wrote to then M.D. of Tata Steel, Mr. Nowroji B. Saklatvala, in 1928 captures his vision for a new India:

"I feel very sincerely that the future of this industry depends largely on Indianization. This is a point which foreigners, however good they otherwise may be, cannot sufficiently appreciate. I have no doubt that if you go ahead with your policy of Indianization you will be able to ingratiate yourself with your Indian employees, your countrymen, as well as with public leaders of all shades of opinion."

Bose's efforts culminated in a historic Memorandum of Understanding signed by M.D. Saklatvala, General Manager C.A. Alexander, and Bose himself. The agreement introduced the first profit-sharing bonus for Tata Steel employees, a legal requirement in independent India only in 1965. Bose also forced the management to consider maternity benefits, which played a significant role in framing economic reforms for industrial labor and setting up human resource policies.

Conclusion

The journey of Jamshedpur from a typical Indian village to becoming India's first planned industrial city is a testament to the resilience and vision of its labor and business leaders. The efforts of figures like C. F. Andrews, Mahatma Gandhi, and Netaji Subhas Chandra Bose laid the foundation for significant reforms and have left a lasting legacy on labor-management relations in India.

The interaction between Netaji, the Tata Steel Company, and labor in Jamshedpur during the 1920s and 1930s is a fascinating chapter in Indian history that continues to influence modern business practices and social reform policies.