Textile mill workers in Tamil Nadu get lesser bonus

textile mills. Most mills have paid either lesser than last year or the minimum 8.33%. Unions cite lack of orders, low capacity utilisation & cash losses as reasons. Permanent workers not getting allowances & statutory benefits, bonus helps them meet major expenses. Few mills paying bonus in installments. Open end spinning mills paying bonus despite shutters.

Workers employed in textile mills in Tamil Nadu are receiving lesser bonus for Deepavali this year compared with last year.

According to the data shared by a Coimbatore -based textile mill association, most of the textile mills have paid either lesser than last year bonus or the minimum 8.33 %.

This indicates the plight of the mills in the State, said an industry source.

According to T.S. Rajamani of HMS union, the managements were citing lack of orders for yarn, low capacity utilisation, and cash losses as reasons for lesser bonus this year.

The number of permanent workers at textile mills in the State has reduced over the years and the managements could have paid higher bonus for the existing permanent workers. Many of the permanent workers do not get allowances. They only get the statutory benefits and get to work at the units for longer years. Bonus amount helps them meet major expenses.

“The unions urged the workers to accept lower bonus this year considering the situation of the industry,” he said.

Some of the mills that had entered into three or five year agreements with the trade unions were paying higher bonus but in instalments, Mr. Rajamani said.