Why Are Tiruppur Knitwear Units Delaying Diwali Bonuses?
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Synopsis
With Diwali on the horizon, Tiruppur's knitwear sector is facing a troubling delay in festive bonus disbursements. Trade unions are demanding immediate action to support workers during this crucial time. Discover the implications of these delays on both employees and the industry as a whole.
Key Takeaways
- Diwali bonuses are crucial for worker morale and festival preparations.
- Only 20% of Tiruppur units have distributed bonuses thus far.
- The Payment of Bonus Act ensures minimum payments based on salary.
- Trade unions are advocating for immediate disbursal to support workers.
- Industry representatives claim distribution is underway despite challenges.
Chennai, Oct 15 (NationPress) As the Diwali festival approaches, many knitwear manufacturers in Tiruppur have yet to disburse festive bonuses to their employees. According to estimates from trade unions, only around 20 percent of the units have handed out bonuses, leaving numerous workers in uncertainty about their festival preparations.
The Tiruppur knitwear industry, which directly employs over 800,000 workers, is vital for both export and domestic markets. However, despite the tradition of granting bonuses prior to Diwali, the majority of companies are postponing payments this year.
Trade unions have pressed managements to expedite the release of these funds to enable workers to make essential purchases and travel back to their hometowns.
The Payment of Bonus Act of 1965 stipulates a minimum bonus of 8.33 percent of a worker's annual salary, with the potential for higher percentages based on company profits and employee tenure.
In the knitwear sector of Tiruppur, bonus rates can differ among firms, with some offering enhanced benefits to senior or long-serving employees. Nevertheless, many companies are criticized for delaying payments due to concerns that workers may take leave once bonuses are distributed.
Unions have labeled this a persistent issue that forces employees to settle for inferior goods due to these payment delays. They contend that timely bonus distribution is essential not only for worker welfare but also for fostering goodwill and productivity within the industry.
Moreover, unions are encouraging workers to reach out if bonuses are denied or postponed, noting that numerous disputes were resolved favorably for employees last year.
Conversely, industry representatives state that the bonus distribution process is already in motion. They assert that payments began last week and will proceed smoothly in the forthcoming days. They also maintain that recent global trade challenges, including the US tariff hike, have not hampered the industry's ability to fulfill bonus commitments.
The knitwear sector in Tiruppur consists of approximately 22,500 companies involved in both export and domestic production. Last financial year, the sector achieved exports worth ₹44,747 crore and domestic trade valued at ₹30,000 crore, highlighting its significance to Tamil Nadu's economy and the livelihoods of thousands of workers gearing up to celebrate Diwali.
Point of View
It is crucial to understand the broader implications of delayed bonus disbursements in Tiruppur's knitwear sector. This situation not only affects worker morale and livelihood but also has the potential to impact the overall productivity and reputation of the industry. Our commitment at Nation is to provide a platform for dialogue between labor and management, ensuring that the voices of workers are heard.
NationPress
15/10/2025
Frequently Asked Questions
Why are bonuses delayed in Tiruppur's knitwear sector?
Many companies are postponing bonus payments due to concerns that workers may take leave once bonuses are distributed.
What is the minimum bonus mandated by the Payment of Bonus Act?
The Payment of Bonus Act mandates a minimum bonus of 8.33 percent of a worker's annual salary.
How many workers are employed in Tiruppur's knitwear industry?
The Tiruppur knitwear hub employs over 800,000 workers directly.
What has been the impact of recent global trade challenges?
Industry representatives claim that recent global trade challenges, including the US tariff hike, have not affected the sector's ability to meet bonus commitments.
What can workers do if their bonuses are denied?
Unions encourage workers to approach them if bonuses are delayed or denied, as many disputes were resolved in favor of workers last year.
