OREANDA-NEWS. October 24, 2012. A Memorandum of Settlement dated 12th October, 2012 has been signed between the Steel Company and the Tata Workers' Union, for Annual Bonus for the accounting year 2011-2012.

The Union and Management has mutually agreed for introducing scheme for payment of annual bonus. As per the scheme the total payout for 30270 eligible employees of all applicable divisions/ Units of the Company on account of annual bonus for the year 2011-2012 will be Rs 182.47 Crores approx as against Rs 171.70 Cr paid in the previous year.

Out of this, for Divisions at Jamshedpur including Tubes Division, an amount of Rs 105.02 Cr approx will be distributed as annual bonus amongst 16,547 employees. The minimum and maximum annual bonus payable for 2011-12 will be Rs 17,978/- and Rs 1,41,343/- respectively.

Since majority of our employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, they are not 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 Agreement was signed on Friday, 12th October, 2012. Mr. H M Nerurkar Managing Director and other Sr. executives signed on Management's behalf and Mr. Premanand Singh, President, Tata Workers Union, and the other office bearers signed on Unions behalf in presence of Dy Lablour Commissioner Jamshedpur.

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.