RINL Unions Raise Alarm Over TOMC’s Threat to Steel Plant Jobs
Trade unions at the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), have expressed concern over the management’s reported move to implement the Total Operation Maintenance Contract (TOMC) system, alleging that it could lead to large-scale outsourcing of operations and threaten employment.
The concerns come at a time when the plant is showing signs of recovery following the financial package announced by the Union Government. Production levels have improved in recent months, and employees have been working to meet operational targets.
According to union representatives, the management has moved to introduce the TOMC model, under which operational and maintenance activities in several departments could be entrusted to private contracting firms.
“The proposed system will leave little scope for fresh recruitment and may eventually result in the displacement of both permanent and contract workers,” a union leader said.
The employee representatives alleged that provisions in the tender documents do not guarantee the continuation of the existing workforce. “Workers are worried about their future. They have contributed to the plant’s functioning despite difficult circumstances, but there is no clarity on their job security under the new system,” another union representative said.
As part of the process, the management has invited Expressions of Interest (EOIs) from companies. Trade union leaders claimed that Tata Steel had already secured the contract for the Sinter Plant, while details regarding other participating firms had not been disclosed.
The unions also pointed to maintenance-related issues in key units such as the Coke Oven Plant, Raw Material Handling Plant (RMHP), Power Plant, Sinter Plant, and Blast Furnaces.
“There has been inadequate maintenance in several departments. Delays in rust clearance and upkeep activities are affecting both production and the operational efficiency of plant units,” a workers’ representative said.
The unions further stated that salary arrears of nearly ₹860 crore remained unpaid.
“At a time when workers are awaiting clearance of wage arrears, the proposed TOMC system has added to their uncertainty,” a union leader said.
Employee representatives also recalled that under the earlier Total Maintenance Contract (TMC) system, recruitment provisions ensured opportunities for the families of permanent employees and displaced persons.
“Those safeguards appear to have been removed in the latest tender process. If the TOMC model is implemented in its present form, operational control of several departments could gradually shift to large private contractors,” they alleged.
The unions have urged the management and the government to clarify the objectives of the proposed restructuring and ensure that the interests of employees are protected while implementing any changes at the plant.