Payment of bonus and ex-gratia on arrears for 2008-09 by Tata Steel to its employees in Jamshedpur has sparked resentment among its staff at Corus, its subsidiary in the UK. The trade union at Corus — Community Union — is now considering legal action to force Corus to pay bonus for employees at Hartlepool and Corby. Corus has not paid the bonus for the April-June quarter due in July this fiscal.

Tata Steel announced a hefty 18.5 per cent bonus for 2008-09 and 8.33 per cent ex-gratia on arrears to its Jamshedpur employees totaling nearly Rs 81 crore. “Tata Corus has unilaterally withdrawn bonuses contrary to contracts of employment and 30 years of custom and practice. Tata, it appears, will respect traditions in India but not in the UK.”

When contacted, a Tata Steel spokesperson told The Indian Express: “Negotiations on Corus bonus scheme for this financial year have started and it would be inappropriate to comment till they have concluded.” Community Union’s spokesman Duncan Harrod, however, said existing bonus schemes continue till new terms are agreed upon. “Workers had already worked during April-June under the existing terms,” he said.

According to Harrod, the union has raised the issue with the Corus management, and the latter is willing to negotiate. “We believe any future negotiations should in no way affect the payment of the bonus as it currently exists.” He said that the union was preparing legal action to force Corus pay the bonus.” Pointing out that the bonus was tied to working practices, Harrod reminded that since the UK steel giant was not paying it, the workers didn’t need to follow some of these working practices.

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