OREANDA-NEWS. September 22, 2011. A Memorandum of Settlement dated 22nd September, 2011 has been signed between the Steel Company and the Tata Workers’ Union, for Annual Bonus for the accounting year 2010-2011.

The Memorandum of Settlement was signed by Mr. H M Nerurkar, Managing Director, Tata Steel, Mr. A M Misra, Vice President (Coke, Sinter and Iron & Industrial Relations) and other senior officials of the Company on behalf of the Company’s Management and Shri Raghunath Pandey, President, Tata Workers’ Union and the other office bearers, on behalf of the Union, in presence of Mr Akhilesh Kumar, Conciliation Officer and Dy. Labour Commissioner, Jamshedpur.

The Annual Bonus for the accounting year 2010-2011 is 18.50% of salary/wages (Basic + DA) paid for the year 2010-2011 taking into account the amount of salary/wages (Basic Pay + Dearness Allowance) of arrears of wage revision paid/payable, as the case may be, for the accounting year 2010-11.

Since all employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, no employee of the Company is eligible for bonus under the Act. However, respecting our old traditions, the Company is going to pay bonus to all employees in the unionised category.

The total payout on account of annual bonus for the year 2010-2011 will be Rs 171/- Crores approximately. Nearly 30155 employees would be paid annual bonus.

In a communique signed by the Managing Director and President, Tata Workers' Union, all the employees are being informed about the payment of annual bonus.