The lug on the side of the pump is to be connected to the pools bonding system. Similar to ground but different ina significant way: The bonding system of a pool connects all electrical equipment, metal parts in or near the pool, as well as the pool water itself with a low resistance conductor of sufficient size to equalize any voltage that may be in / around the pool. This is for the safety of your swimmers and is intended to prevent elecrocution.
You should have connected the ground cable with the electrical hook up.
I don't know how to advise you if your pool was contructed without proper bonding - perhaps you can tell us more about your pool, how you came by it.
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