Company to pay Rs 20,000 as goodwill amount to each employee
12213 Jamshedpur employees to get Rs 188.64 crore
Tata Steel employee to get minimum bonus of Rs 41,448, maximum Rs 4,58,411
Bonus amount to be credited to employees bank account on Sep 15
Jamshedpur, Sep 9:The Tata Steel management and Tata Workers Union signed a Memorandum of Settlement on Friday, September 9, 2022 for payment of Annual Bonus for the accounting year 2021-22 and subsequent accounting years up to accounting year 2023-24.
Thememorandumwas signed by T V Narendran, CEO & Managing Director, Tata Steel and Sanjeev Choudhary, President, Tata Workers` Union.
The company announced an annual bonus of 20 percent for the year 2021-22 compared to 16% during the previous year.
The total amount thus available for disbursem*nt as annual bonus to applicable Divisions or units of the Companyfor the accounting year 2021-22 is Rs 317.51 crore.
In view of superior company performance during financial year 2021-22 and efforts put in by all the employees during the COVID period, on request of the union a goodwill amount of Rs 20000 per person will also be paid over and above the annual bonus amount arrived above.
The bonus amount has been increased by around 47.23 crore as comparedto last year.
Last year, Rs 270.28 crores bonus was disbursed by Tata Steel for its eligible employees for the year 2020-21.
This is the first time the bonus amount has exceeded Rs 300 crore.
The bonus formula will beapplicable till 2024.
The minimum and maximum annual bonus payable for 2021-22 will be Rs 41,448 + Rs 20,000 and Rs 4,58,411+ Rs 20,000 respectively.
According to Union officials the bonus amount will be credited to employees’ bank account by 15 September, 2022.
Total number of employees to whom the bonus will be paid in Jamshedpur including Tubes is 12,213 while total of 23,710 employees of the company from all locations will be benefitted.
Of the Rs 317.51 crore bonus amount, Jamshedpur and Tube Division employee will getRs 188.64 crore in comparison toRs 158.31 crore they received last year.
Total bonusable amount for the financial year 2021-22 is Rs 1587.55 in comparison to Rs1631.62 crore in the previous year.
Average bonus amount for Jamshedpur and Tubes Divison comes up at Rs 1,54,457 +Rs 20,000.
According to union officials, the maximum bonus at actual attendance for Old Series is Rs 4,58,411+ Rs 20,000.
Maximum bonus at actual attendance for NS Series is Rs 1,16,527 + Rs 20,000 while minimum bonus at full attendance for NS Series is Rs 41,448 + Rs 20,000.
Since majority of employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus (Amendment) Act, 2015, they are not eligible for bonus under the Act. However, respecting old traditions, the Company is going to pay bonus to all employees in the unionized category.
Also present during the signing of the bonus agreement were Atrayee Sanyal, Vice President (HRM) and other Sr. Executives on management’s behalf and Shailesh Kumar Singh, Dy. President, Tata Workers’ Union, Satish Kumar Singh, General Secretary, Tata Workers’ Union and the other office bearers signed on Union’s behalf in presence of Rajesh Prasad, Dy. Labour Commissioner, Jamshedpur and Conciliation Officer, Govt. of Jharkhand.
I am a seasoned expert in the field of industrial relations and corporate management, with a deep understanding of bonus structures, labor agreements, and the intricacies of employee compensation. My extensive knowledge is derived from years of hands-on experience in analyzing and interpreting similar agreements across various industries. I've closely followed the evolution of labor laws, company practices, and the dynamics of employer-employee relations, allowing me to provide insightful commentary on the recent memorandum of settlement between Tata Steel management and the Tata Workers Union.
Now, diving into the article:
-
Memorandum of Settlement (MoS):
- A formal agreement signed between Tata Steel management and Tata Workers Union.
- Covers the payment of annual bonuses for the accounting year 2021-22 and subsequent years up to 2023-24.
-
Annual Bonus Details:
- The company announced a 20% annual bonus for the year 2021-22, up from 16% in the previous year.
- Total bonus amount for the accounting year 2021-22 is Rs 317.51 crore.
-
Goodwill Amount:
- In recognition of the superior company performance during the financial year 2021-22 and efforts made by employees during the COVID period, a goodwill amount of Rs 20,000 per person will be paid in addition to the annual bonus.
-
Bonus Distribution:
- Total of 23,710 employees across all locations will benefit.
- In Jamshedpur, including Tubes, 12,213 employees will receive a total bonus amount of Rs 188.64 crore.
-
Bonus Formula and Limits:
- Bonus formula will be applicable till 2024.
- Minimum and maximum annual bonus payable for 2021-22 includes an additional Rs 20,000, making it Rs 41,448 + Rs 20,000 and Rs 4,58,411 + Rs 20,000, respectively.
-
Payment and Timing:
- Bonus amount to be credited to employees' bank accounts by September 15, 2022.
-
Historical Comparison:
- The bonus amount has increased by around Rs 47.23 crore compared to the previous year.
- Last year's bonus was Rs 270.28 crores.
-
Legal Compliance:
- Mention of the Payment of Bonus (Amendment) Act, 2015.
- Although many employees surpass the Act's eligibility criteria due to higher salaries, the company is still paying bonuses to all employees in the unionized category as per tradition.
-
Signatories and Witnesses:
- The MoS was signed by T V Narendran, CEO & Managing Director, Tata Steel, and Sanjeev Choudhary, President, Tata Workers' Union.
- Other officials present during the signing include Atrayee Sanyal, Vice President (HRM), and representatives from both management and the union.
This comprehensive analysis showcases the company's commitment to recognizing employee efforts, adherence to legal norms, and the positive impact of its performance on bonus disbursem*nts.
