Tata Steel settles bonus issue with workers' union...

Tata Steel has signed a memorandum of settlement with the Tata Workers’ Union for the 2007-08 annual bonus, which will translate to a payout of Rs 113.8 crore.

The annual bonus, which would be calculated on the basis of production (50 per cent) and profitability (50 per cent), works out to 19.26 per cent of salary/wages paid for 2007-08. However, in consideration of the company’s centenary year, the bonus percentage has been rounded off to 20 per cent salary/wages (basis and dearness allowance).

At 20 per cent, the minimum and maximum annual bonus payable would be Rs 9,154 and Rs 75,372, respectively. The total payout at Jamshedpur would be Rs 64 crore and across Tata Steel’s operations Rs 113.8 crore.

The settlement, which was valid for five years, has been extended for a year. A Tata Steel spokesperson said the settlement is signed every year under the broad outline of the five-year agreement. Last year too, the bonus percentage was 20 per cent.

The settlement was signed by Tata Steel Managing Director B Muthuraman and TWU President Raghunath Pandey and senior executives of the company and union office bearers, in the presence of R P Singh, conciliation officer, deputy labour commissioner, Jamshedpur.

Source: Business Standard