Port workers to get 8.33% bonus

Shipping Minister Shatrughan Sinha yesterday announced that employees of the twelve major ports in India would receive a bonus of 8.33 per cent of their annual salaries. This was decided at a meeting attended by all the five port and dock workers' unions, the minister and the shipping secretary.

At present, the bonus for these workers is calculated at a flat rate of 20 per cent of their monthly salaries, subject to a minimum monthly salary of Rs 2,500.

The otherwise belligerent workers' unions agreed to a lower rate as the issue of productivity-linked rewards (PLR) is pending with the National Tribunal, constituted in July this year.

The minister's announcement has come as relief for the workers, who were afraid of not receiving any bonus this year.

"It is basically a political decision to keep all the parties happy and ensure that the unions do not create any trouble," an official said. The unions have also made an offer for an out-of-court settlement. The first hearing of the Tribunal will be on September 19.

The port workers do not come under the Bonus Act so the reward they get at a flat rate irrespective of the profit or the productivity of the port, rather than being called bonus is called the productivity linked reward (PLR).

In the mid-nineties the port managements and the government initiated attempts at establishing a PLR regime in true sense where the incentives granted would commensurate to performance of the ports in terms of efficiency.

The efforts were met with stiff resistance from the federations and all attempts at resolving the issue were derailed as the port managements and the federations failed to achieve consensus on the issue.

Finally in May 2003, the Port Managements requested the shipping ministry to approach the labour ministry for referring the matter to the the Tribunal in accordance to the chief labour commissioner's order given in 2002.