Jamshedpur: The management of Tata Steel and Tata Workers� Union signed a settlement for payment of annual bonus for the accounting year 2016-17 here on Thursday.
The total amount available for disbursement as annual bonus to applicable divisions and units or the company is Rs 165 crore approximately. The total payout on account of bonus at Jamshedpur is Rs 97.96 crore approximately, company sources said.
The bonus settlement was signed in the Board Room in the evening in the presence of Tata Steel MD, India and South East Asia, TV Narendran, Tata Workers Union president R Ravi Prasad, VP (HRM) SD Tripathy and other company and union officials.
As per the bonus agreement, the minimum bonus amount is Rs 17,193 while the maximum amount to be paid is Rs 1,72,365, sources said.
The Union and management had mutually agreed for introducing an annual bonus scheme for 2014-15, 2015-16 and 2016-17 to pay annual bonus based on 1.5 per cent of Net Profit plus amount arrived based on performance achievement on profitability, productivity and safety parameters to be distributed as annual bonus to all employees of different locations of the company.
For the year 2016-17, net profit from India operations is Rs 3933.17 crore and the amount at the rate of 1.5 per cent of Rs 3933.17 crore worked out to be Rs 59 crore.
The profitability is Rs 4139 per ton of saleable steel, productivity is 410.5 tons of crude steel per employee per year. The amount based on performance of these three parameters is Rs 44 crore, Rs 52.5 crore and Rs 5 crore respectively.
Sources said as many as 14586 employees of Jamshedpur plant and Tubes division will get a total amount of Rs 97.96 crore in bonus. The 12,014 employees working in the Mines and Collieries will get a bonus of Rs 67.04 crore. The bonus amount will be sent to the bank account of employees by 7th September.
�On the request of Union, it was decided to grant additional Rs 4 crore for winning Prime Minister Trophy for the year 12-14. The total amount thus comes to Rs 164.5 crore,� said the company spokesperson.
The TWU president said the PM Trophy award money would be spent on employees� welfare. He said the union had requested the company to add the additional award money in bonus.