Jamshedpur, Oct 7: A Memorandum of Settlement dated October 7, 2015 was signed today between Tata Steel and Tata Workers’ Union for Annual Bonus for the accounting year 2014-15.
T V Narendran, MD, Tata Steel, India & SEA and other Senior Executives, on behalf of the Management and R. Ravi Prasad, President, Tata Workers’ Union, and other office bearers, on behalf of the Union signed the memorandum. As per the Memorandum of Settlement, the total payout for 16249 eligible employees (including Tubes and employees in T Series & NS Series of grades) of the Company on account of annual bonus for the year 2014-15 will be Rs 154.72 crores.
The minimum and maximum annual bonus payable for 2014-15 will be Rs 14,877 and Rs 1, 44,858 respectively. In a communiqué signed by MD, Tata Steel, India & SEA and President, Tata Workers’ Union, all the employees are being informed about the payment of annual bonus.
On the occasion the union and management mutually agreed for introducing an annual bonus scheme for 2014-15, 2015-16 and 2016-17 to pay annual bonus based on 1.5 % of Net Profit (i.e. Net Profit minus Net Profit as per audited annual accounts for the year minus Earnings from exceptional items) plus and amount arrived based on performance achievement on profitability (profit per ton of saleable steel), productivity (tons of crude steel / employee / year) and safety (LTIFR) parameters to be distributed as annual bonus to all employees of different of the company.
For the year 2014-15, the net profit from India operations (i.e. Net profit as per audited annual accounts for the year minus Earnings from exceptional items) is Rs 4548.27 Crore. The profitability @ 1.5% of Rs. 4548.27 Crore works out to Rs. 68.22 Crore. The profitability (Profit / ton of saleable steel) is Rs. 5198/ saleable steel, Productivity (TCS/employee/ year) is 338/employee/year and LTIFR is 0.31. The amount Rs. Crore based on performance of these three parameters comes to Rs. 49.0 Cr. Rs. 32.5 Cr and Rs. 5.0 Cr respectively. The total of Rs. 68.22 Crore plus Rs 49 crore plus Rs. 32.5 Cr plus Rs 5 crore comes to Rs 154.72 crores.