32,000 Tata Steel Employees Will Get Rs 235 Crore Bonus Despite Rs 4700 Crore Loss
Tata Group has once again proved that for them, a promise is a promise, and employee benefits and morale comes before everything else.
Despite reeling under slowdown, and massive losses, Tata Steel has announced Rs 235 crore bonus payout for all their 32,000 employees.
This speaks volume about their commitment for employee’s welfare and goodwill.
Tata Steel Will Give Rs 235 Crore Bonus To 32,000 Employees
A memorandum of settlement was signed between Tata Steel and Tata Workers’ Union (TWU), which has resulted in a bonus payout of Rs 235 crore for all employees.
There are more than 32,000 employees as of now working for Tata Steel.
The memorandum was signed between Tata Steel CEO and Managing Director T V Narendran and TWU President R Ravi Prasad.
The company has promised a 3-year bonus package for all employees in 2018, and Tata Steel is fulfilling this commitment.
In a statement, Tata Steel said, “Rs 235.54 crore bonus declared for accounting year 2019-20. Despite a difficult year due to Covid-19, Tata Steel honoured its 3-year commitment to ensure complete bonus payment to employees,”
Tata Steel Reeling Under Heavy Losses
In the quarter of April to June 2020, Tata Steel reported a consolidated loss of Rs 4648 crore.
In the last quarter of 2019, Tata Steel has reported losses of Rs 1615 crore.
Hence, despite such heavy losses and low revenues, the company has fulfilled their promise of giving out the bonus.
However, things are now looking uphill.
Last week, the company announced that their production is now back at 100%.
As per Chief Executive Officer and Managing Director TV Narendran, this development showcases that fact that domestic demand for steel is now picking up, and the economy is reviving.
We will keep you updated, as more details come in.