Tata Steel, a prominent Tata company, has announced a significant bonus for its employees, totaling Rs 303.13 crore for the financial year 2024-25. This decision comes after the company signed a memorandum of settlement with the Tata Workers’ Union (TWU) in Jamshedpur. The bonus payout will benefit a substantial number of employees, with Rs 152.44 crore earmarked for the Jamshedpur divisions, including the tubes unit, which will benefit 11,446 employees.
According to the agreement, the minimum annual bonus payable for 2024-25 will be Rs 39,004, while the maximum annual bonus will be Rs 3,92,213. Notably, the bonus will be paid to all employees in the unionized category, despite the majority of them drawing salaries higher than the limit laid down in the Payment of Bonus (Amendment) Act, 2015. The company has chosen to respect its old traditions and pay the bonus to all eligible employees.
The agreement was signed by senior executives of Tata Steel, including CEO and MD T V Narendran and Chief People Officer Atrayee Sanyal, as well as representatives from the Tata Workers’ Union, including president Sanjeev Kumar Choudhary and general secretary Satish Kumar Singh. The Jharkhand government’s Deputy Labour Commissioner, Jamshedpur, and Conciliation Officer Arvind Kumar were also present during the signing of the agreement.
This announcement comes as a welcome respite for employees, especially in light of recent layoffs announced by another Tata company, TCS. The layoffs, which affect around 2% of staff, have been a cause for concern among employees. However, Tata Steel’s decision to pay a substantial bonus to its employees is a positive development and a testament to the company’s commitment to its workforce.
The bonus payout is a significant amount, totaling Rs 303.13 crore, and will likely have a positive impact on the employees and their families. The agreement between Tata Steel and the Tata Workers’ Union demonstrates the company’s willingness to work with its employees and prioritize their well-being. As the company continues to navigate the complexities of the steel industry, this decision is a welcome move that will likely boost employee morale and motivation.