18th April 2019 From India, Kannur
18th April 2019 From India, Salem
So negotiate calmly and as Learned member Madhu said make a counter offer, after considering your financial status, chances of production, profit in the future years etc and then offer what management feels is affordable.
Stick to lower level of increase as reducing bonus rates subsequently will give rise to heartburn and unrest.
18th April 2019 From India, Pune
As an HR you should know why such demand of 20% has come aginst 8.33% bonus payment from the union. You have to understand the pulse of the management how much you can afford. The information of demand by the union to be brought to the notice of labour department. This is not an easy task but one has to involve as a whole and to be diplomatic.
Start discussion what with union what wefare management has plan for the employee and the difficulties lies before managemnt. Keep the key members of the Union in your fold and create an atmosphere for your result. A good bargainer is a sucessful Negotiator. Do not mind for rounds of meetings or expense on that aspect idcuss with a friendly atmosphere. Take the minitues of each sitting. As suggested anything within 10-11 % is good move.
19th April 2019 From India, Mumbai
Payment of Bonus Act is absolutely clear to determine % of bonus based on available surplus, allocable surplus, Set on & Set off. If the organization has paid 8.33% based on Payment of Bonus Act, then there should not be any problem even if it is challenged under court of law. But if it is not, then it is a problem.
Demand of Union is a different subject. If the calculation is as per Payment of Bonus Act, please open the card and show it to union. Bargain if necessary. But my suggestion if payment of bonus act does not allow to pay as per calculation more than 8.33%, do not pay the extra amount if necessary as bonus instead pay as exgratia. Otherwise in future for continuous payment of bonus ignoring the method of arriving % of bonus - will be considered as customary bonus .
Thanks & Regards,
S K Bandyopadhyay( WB, Howrah)
+91 98310 81531
19th April 2019 From India, New Delhi