In spite of fall in profit, handsome bonus declared in Tata Steel: Tata Workers Union President

Sanjeev Choudhary receives enthusiastic welcome

Jamshedpur: Tata Workers Union President Sanjeev Choudhary, alias Tunnu Choudhary, received a warm reception upon returning with the finalized bonus agreement for 2023-24.

At Tata Workers Union premises in Bistupur on Monday, Union President was greeted with traditional percussion instruments, firecrackers, and a large garland as committee members and employees celebrated the successful negotiation of a favorable bonus under difficult circumstances, including a significant decline in company profits.

Speaking to the media, Choudhary stated that the sudden drop in steel prices in China led to losses for Tata Steel compared to the previous year. Despite these setbacks, the company has maintained employee safety and other facilities.

Sanjeev Choudhary said, “It is a handsome bonus, particularly given the 55% drop in company profits. Despite these challenges, the company has upheld its commitment to employee safety and other benefits. We are pleased with the outcome, considering it a ‘respectable bonus’ despite the reduced profits, and we remain hopeful that market conditions will improve to secure a 20% bonus next year.”

Choudhary also noted that the recent merger of four companies—TSLP, TCIL, Tata Metaliks, and TSML—with Tata Steel increased the workforce to 27,454 employees, all of whom will benefit from the bonus. The total bonus amount of ₹303.13 crore is approximately ₹5 crore more than last year’s agreement under the set formula. In 2022-23, the company initially offered ₹298.82 crore, but after union negotiations, an additional ₹15.88 crore was added, acknowledging the hard work of employees.

Choudhary urged employees to use the bonus wisely for their family’s future, as the company prepares to revise the bonus formula next year based on profits.

The agreement has been met with satisfaction, as it ensures that employees continue to receive a profit-based bonus despite financial challenges.

This year’s bonus distribution marks the final payout under the current bonus formula, established in 2021, which will be revised next year for future agreements based on company profits.