Coal India hopes to reach wage pact for non-executive workforce soon
Premium- 'Coal India aims to conclude the wage pact of its non-executive workforce at the earliest in a mutually agreeable manner,' the Ministry of Coal said in a release
The Ministry of Coal has clarified that the government-run coal mining and refining company, Coal India Limited (CIL) is looking to reach a wage pact for its non-executive workforce at the earliest.
“Coal India Ltd (CIL) has held five meetings under NCWA – XI so far. The Company aims to conclude the wage pact of its non-executive workforce at the earliest in a mutually agreeable manner," as stated in the official press release.
CIL maintains amicable and harmonious relations with its Unions and strives to avoid any discordance or strikes in view of the importance of the coal sector in the country. The negotiations are in progress and it usually takes time to conclude the pact.
It is pertinent to mention that CIL was the first CPSU in the country to have successfully concluded the previous three wage agreements. Keeping up this tradition, CIL hopes to quickly seal the wage pact this time as well.
Meanwhile, a key trade union at Coal India Ltd. has warned workers may strike over delays in finalising salary increases. Talks held July 1 failed to reach any agreement over a pay deal, Bloomberg quoted Sudhir Ghurde, who represented Akhil Bharatiya Khadan Mazdoor Sangh.
Coal India workers seek 47% increase in wages
Workers are seeking a 47% increase in wages while Coal India has offered a 3% raise. In August last year, trade unions at Coal India Ltd demanded a 50% increase in workers' wages, company Chairman Pramod Agrawal had said that it would be difficult for the PSU to give a 50% wage hike to workers due to financial constraints.
Tussle over $5 billion wages
Coal India’s salary bill was 407 billion rupees ($5.2 billion) in the 12 months ended in March, about 6% higher from the previous year, Bloomberg reported. The company, which is facing higher production costs, spent more than a third of its revenue on salaries.
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Wages of non-executive workers, which account for 94% of Coal India’s workforce, are revised every five years.. The hike is due from July this year. In 2017, CIL signed a wage agreement with worker unions proposing a 20% hike in salaries for five years. Coal India has a total workforce of 2.59 lakh. Out of this, around 15,000 are executive staff.
-With inputs from Agencies