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Tirupur Apparel export units provide bonus at statutory rates

While the most of apparel units in the district of Tirupur are ready to provide Diwali bonus only at minimal rates this year, trade unions have urged them not to reduce the bonus rate by citing economic slowdown, demonetization and GST.

While the most of apparel units in the district of Tirupur are ready to provide Diwali bonus only at minimal rates this year, trade unions have urged them not to reduce the bonus rate by citing economic slowdown, demonetization and GST.

More than six lakh employees are working in more than 2,000 apparel units in the district. The units provide bonus for the employees during every Diwali. The trade unions recently petitioned the district administration seeking it to direct apparel units to provide bonus at usual rates.

General secretary of Banian Factories Labour Union, Tirupur AITUC, N Sekar said, “Though the units usually start giving bonus since Ayudha puja festival, it has been delayed in recent years.

Many units nowadays were crediting the bonus in bank accounts of the employees, that too a couple of days before Diwali. Since most of the employees are from other districts or other states, they would not be able to question even if the percentage was on lower side.”

“Many units which have performed excellently for many years earlier were pointing out the present slowdown as the reason for not giving bonus at the usual rate. Moreover, ‘piece-rate’ employees were not given bonus this year too. We urge the units not to leave them in giving the bonus because it was violation of the Payment of Bonus (Amendment) act, 2015,” he added.

While most of the apparel units which do domestic business have given the bonus at rate 12%-25%, most of export units were sticking with the statutory 8.33%bonus for Diwali.The domestic units have provided the bonuses at the healthy rates despite the slowdown because it is important to safeguard interests of the employees and retain them.

S P Muthurathinam, president, Tirupur Exporters and Manufacturers association observed that the employees understand about the slowdown and they themselves received the bonus at the rates they could give.

The units ensured that the employees would get them at least at the minimum rate of 8.33%. Tirupur Exporters’ Association executive member K R Kumar said, the units could not provide bonus this year at the rates given during the years when the business was healthy.

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