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Now, it is bonus time!

If Diwali is round the corner, can the bonus issue be far behind? Certainly not, and more so, for the textile industry whose history is full of pages of prolonged disturbances arising from bonus disputes. Whichever part of the country the textile cluster is, Diwali and bonus are generally explosive opponents. In the last couple of years, the unions could not win much because they had to finally admit that the industry was in such a bad shape fiscally that any agitation would only facilitate the managements to down shutters. This would deprive even the basic wages, let alone the luxury of bonus. So, although there was widespread discontent amidst the working class, the general feeling was that bonus could no longer be regarded as a serious issue for agitation. And, in the southern states, for some time now, bonus is considered only at unit level, against the industry-wide approach of the past.

Thus, the unions have to raise the issue only with each unit and in many cases, the decisions were independent of the happenings elsewhere. So, there was hardly any scope for disputes or disturbances in the industry. This is happening now also. Textile units in Coimbatore and Tirupur regions are signing bonus agreements with the unions working in their respective units. The unions are said to be demanding a minimum of 15 per cent with the maximum being linked to last year’s payouts. The maximum is thus around 35 per cent in some cases. But, there are many cases where the managements are offering a lower percentage this year for various reasons and quite a number of units are negotiating for a minimum possible bonus of 8.33 per cent. Consequently, there is no straightaway agreement in many units. A union leader told this columnist that even in cases where things were brighter in the year gone by compared to the earlier years, the managements adopt a stiff stand. “They have gotten used to paying a lower bonus and so, now, they find it hard to part away with a higher percentage. But, they should know that law prevails more than their willingness,” the leader said. He even asserted that the workers would strike work if the managements refused to see reason.

To that extent, there seems to be some tension in some units even though by and large, the managements have been able to make the union leaders see their point of view. Already, some unions have threatened to call for a strike if the managements failed to sign bonus agreements in a week’s time. Still, some other union leaders said that they would not be insisting on strike if there is a willingness on the part of the managements to consider the case reasonably. In other words, they are not interested in invoking their right to strike as along as their right to bonus is respected. Besides, the managements themselves have shown their appreciation of the union leaders’ understanding of the economic plight of the industry in the last couple of years. Still, the unions do not want the issue to be liquidated. On October 7, sponsored by the CITU, thousands of workers marched along the streets of Tirupur demanding an early release of Diwali bonus. This included workers from many hosiery factories. A union leader said that this was just to show the managements that the workers are aware of their right to a fair bonus dispersal which meant the right amount at the right time. But, the managements have told the leaders that reasonable bonus does not mean anything that they ask for. The profitability of the units, the allocable surplus, the extremely poor working conditions of the past couple of years as also the newer challenges emerging form January 2005 when the industry would be thrown open for unprotected quota less competition - all will have to be kept in mind before such extra payouts are made. “We want the union leaders to realise that golden eggs are good, but the goose laying them is better,” a mill owner told this columnist. He said that the unions’ threat for a strike or taking out a rally is just instruments to force the managements to settle the bonus issue at the earliest. Beyond this, there is little scope for the unions to enter into industry-wide strike when the issue is confined to unit-levels. Actually, it is in respect of those units where there is no sign of Diwali bonus talks that the unions are more agitated. In all other cases, they are prepared to strike an agreement rather than strike work. This arises from their realisation that in the context of the poor performance of mills in the last few years, many workers have lost their jobs and the unions could do nothing to protect their interest. So, a stiff attitude might not help and the workers themselves might not support them totally.

But, the workers are submitting to the union leaders to explore a better bonus this year as already, the cost of basic items has gone up, due to the Diwali season. So, the workers need more money to survive the pre-Diwali inflation, the union leaders argue. The managements know this and more. So, hopefully, bonus would be smooth this Diwali.

— P S Sundar