Good news for Tata Steel employees! Rs 235 crore bonus payout announced

It's a big good news for Tata Steel employees as the company has announced that it will pay Rs 235.54 crore in bonus to its employees for FY 2019-20. A Memorandum of Settlement was signed on Monday between the management of Tata Steel and Tata Workers' Union (TWU) for the payment of the annual bonus, as per Tata Steel's statement. The memorandum was signed by Tata Steel CEO and Managing Director T V Narendran and TWU President R Ravi Prasad.

"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," the company said.

Tata Steel has reported losses in the past two quarters. During April-June 2020-21, the company reported a consolidated loss of Rs 4,648.13 crore. During the fourth quarter of 2019-20, the company had posted a loss of Rs 1,615.35 crore.

Earlier, it was reported that Tata Steel is in talks with the UK government and has offered up to 50 per cent stake in Port Talbot steelworks in Wales for around 900 million pounds or $1.15 billion. Reportedly, Tata Steel had presented proposals to the UK government in recent weeks aimed at securing a state investment for its UK operations. The IANS report added, "the talks are at a tentative, rather than concrete stage, and the structure of any deal, as well as the size of any financial contributions, remain far from being finalised."

Tata Steel has two integrated (blast furnace-based) steelmaking sites in Europe -- one in Port Talbot in south Wales and the other in Ijmuiden in the Netherlands.