OREANDA-NEWS. A Memorandum of Settlement dated 23rd September, 2013 has been signed today between the Steel Company and the Tata Workers’ Union, for Annual Bonus for the accounting year 2012-2013.

Mr. H M Nerurkar, Managing Director, Tata Steel, 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.

As per the Memorandum of Settlement, the total payout for 30824 eligible employees of all applicable divisions / units of the Company on account of annual bonus for the year 2012-13 will be Rs 180.5 crores.

Out of this, for Divisions at Jamshedpur including Tubes Division, an amount of Rs 103.6 Cr approximately will be distributed as annual bonus amongst 17,254 employees. The minimum and maximum annual bonus payable for 2012-13 will be Rs 13311/- and Rs 1,43,653/- respectively.

Since majority of the employees of the Steel Company are drawing salaries / 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.