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Double blow of demonetisation and GST has TN businessmen struggling to dole out bonus

With Deepavali round the corner, the workers in Coimbatore district are looking forward to bonus, while the dull markets has the industrialists worried.

Published: 17th October 2018 02:49 AM  |   Last Updated: 17th October 2018 08:22 AM   |  A+A-

Rs 2000, cash,money

Image used for representational purpose only.

Express News Service

COIMBATORE: It’s that of the year again when workers expect bonus and with Deepavali round the corner, the workers in Coimbatore district are looking forward to bonus, while the dull markets has the industrialists worried.

Coimbatore is known for manufacturing textiles, castings, automobile spare parts, engineering products, wet grinders, motor pump sets and various other products. There are more than one lakh registered industries and 20,000 micro units in the district, providing employment to over seven lakh people.

The workers get bonus on the occasion of Deepavali. The industries, especially the textile mills, offered huge bonus until 20 years ago and a job in the spinning mill was considered equivalent to or even more than a government job mainly due to handsome salary, lumpsum bonus and other attractive perks.

But in the due course, mills faced a crisis due to lack of upgradation and modernisation and many of them were closed subsequently.

Until 2008, the other industries witnessed a steady growth, but the power shortage that lasted for five years hit them badly. Several steps taken by the State government helped them come out of the crisis.

Then came the blow in the name of demonetisation and GST and the industries are again struggling for the past two years to cope with the reforms.

The large and corporate industries are managing, but the micro, small and medium units are still reeling under crisis.

As the market situation continues to be dull and Deepavali is nearing, many of them have decided to give only a small percentage as a bonus.

A Siva Shanmuga Kumar, president of Coimbatore District Small and Medium Foundry Owners’  Association (COSMOFAN) said, “This year, the overall market is dull due to several factors. But since bonus is unavoidable in the casting industries, it has been decided to distribute a minimum of 8.33 per cent and maximum of 16 per cent as bonus.”  

Echoing his view, J James, district president of Tamil Nadu Association for Cottage and Micro Enterprises (TACT) said the grievances aired by the sector are yet to be addressed.

“But bonus is a must to retain workers. Last year, due to GST implementation, a minimum amount was given to ensure that the workers are not disappointed. This year too, the micro industries will distribute only 8.33 per cent bonus to workers,” he said.

But the workers say it is unfair on the part of the management to maintain the bonus amount at a minimum percentage.

TS Rajamani, the Coimbatore District Textile Workers’ Union (HMS) said, “Loss or profit in any establishment depends on the managements activities. Despite several issues, the industries are continuously running with the contribution of the workers. It is unfair for any management to cite crisis as the reason for giving minimum bonus.”



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