TIRUPPUR: With Deepavali just around the corner, just about 20% of knitwear manufacturing companies have given bonuses to workers so far.
Meanwhile, trade unions have urged all companies to give bonuses to workers in advance to help them ahead of the festival.
N Sekar, general secretary of Baniyan Union of AITUC, said, “The Bonus Act was introduced in 1965. Deepavali bonus should be given to workers depending on the profit and production of the company. Initially, bonus was given at the end of the financial year. It is customary to provide it during Deepavali. In Tiruppur, there are more than eight lakh workers directly dependent on this sector."
"A worker is eligible to get a bonus if they work for a company for at least 30 days. The minimum bonus is 8.33% of the worker’s salary. Here, knitwear owners offer bonuses at various percentages above the minimum level based on the experience of the workers at their companies,” he said.
“Usually, knitwear workers in Tiruppur go to their hometowns for Deepavali and Pongal. We have already requested that companies pay bonuses 15 days before the festival. But as of Monday, only 20% of the companies had given bonuses to the workers,” he added.
“Companies are afraid that workers will not come to work if they pay bonuses. This is why companies delay bonus payments. Labor welfare cannot be compromised. Workers can satisfactorily engage in Deepavali purchases only if the bonus is paid in advance. They will be forced to go to their hometowns after purchasing substandard goods. Companies should immediately give bonuses without delay,” he added.
Further, he said, “Workers can approach trade unions if they face any injustices. We solved bonus issues in some companies last year.”
K Ramakrishnan, general secretary of Baniyan Union of LPF, said, “Companies should not wait until Saturday to pay bonuses. Bonuses should be paid within a day or two. We also insist on providing bonuses with a hike compared to last year.”
N Thirukumaran, general secretary of Tiruppur Exporters’ Association (TEA), said, “Knitwear manufacturing companies in Tiruppur have been giving bonuses to workers since last week. The companies continue to provide and the process is smooth. The US tariff hike issue will not affect bonus disbursement to workers in Tiruppur. The bonus amount has not been reduced due to this.”
Around 22,500 companies are operating depending on Tiruppur knitwear sector and more than eight lakh workers, including migrant workers, are dependent on this sector. In the last financial year, Tiruppur had exports worth Rs 44,747 crore and domestic trade worth Rs 30,000 crore.
