Tata Steel announces 20 per cent bonus for this fiscal

Jamshedpur, Sep 05 (UNI) A Memorandum of Settlement (MoS) has been signed between Tata Steel and the Tata Workers' Union (TWU) today for Annual Bonus for the accounting year 2006-2007.

The MoS dated 20th August, 2002, which was valid for 5 years till the accounting year 2005-06, has been extended for the accounting year 2006-07 also, company statement said here.

B.Muthuraman, MD, Tata Steel and Raghunath Pandey, President, TWU and Executives of the Company and Union Office Bearers signed the Settlement in the Board Room here in the presence of the Conciliation Officer and Deputy Labour Commissioner, Jamshedpur.

In accordance with it, the Annual bonus for the accounting year 2006-07 is to be calculated on the basis of 50 per cent on production and 50 per cent on profitability. Based on this calculation, the Annual Bonus works out to 9.7 per cent on production and 10 per cent on profitability- thus making a total of 19.7 per cent of salary/wages (Basic and Dearness Allowance) paid for the year 2006-2007.

However, on the request of the Union and in consideration of satisfactory performance during 2006-07 and in order to keep up the morale of the employees, it was agreed to round off the Bonus percentage for the accounting year 2006-07 from 19.7 per cent to 20 per cent of salary/wages (Basic and Dearness Allowance) paid for the year, the sources said.

UNI