Tirupur hosiery units disburse Rs 250-cr bonus

The hosiery units in Tirupur have settled the bonus payments well in advance this year, motivated by the need to make sure that nothing upsets the boom in business. More than Rs 250 crore has been disbursed as bonus all over Tirupur.

"The industry is experiencing an upward trend after the post-quota period and the managements do not want to lose their business by dragging the bonus issue. Hence, the bonus payments are made in advance and in an amicable way unlike last year when there was so much delay in this regard," a spokesperson of Tirupur Exporters Association said.

The bonus percentage of the units varies from 10 per cent to 32 per cent. Speaking to Business Standard, M Ramakrishnan, manager of The South Indian Hosiery Manufacturers Association (SIHMA), said that there has been one to five per cent hike in the bonus payments over that of previous year.

There are more than three lakh workers employed in the hosiery units in and around Tirupur.

But in the knitwear industry, the scenario is different. Being a seasonal in nature and not completely organised, the managements pay bonus on the basis of individual workers' performance.