Coal India hopes to conclude wage hike agreement within a month
1 min read . Updated: 10 May 2023, 04:45 PM IST
PremiumCIL said its profit after tax for Q4 FY’23 was significantly affected by the ongoing wage negotiations, which led to the quarterly provisioning of an upfront wage cost since July 1, 2021
New Delhi: Coal India Limited (CIL) anticipates finalizing the eleventh national coal wage agreement (NCWA-XI) within the next month, benefiting its 238,000 non-executive employees, according to a company statement. Negotiations are set to continue on May 19.
CIL said its profit after tax (PAT) for Q4 FY’23 was significantly affected by the ongoing wage negotiations, which led to the quarterly provisioning of an upfront wage cost since July 1, 2021. If not for the wage cost provisions, CIL’s Q4 PAT would have reached a record-breaking ₹9,920 crore, a 40% increase from ₹7,071 crore in Q4 FY’22, instead of an 18% contraction.
Despite record operational performance in Q4 FY’23, CIL’s consolidated PAT declined to ₹5,528 crore due to a ₹5,870 crore provision made in the quarter ending March 31, FY 2023. Out of the total ₹8,153 crore provision for wage revisions during FY23, 72% or ₹5,870 crore was accounted for in the last quarter. This marks a 12.4-fold increase compared to the ₹475 crore provision in Q4 FY’22.
After signing a memorandum of understanding in Q3 FY’23 that recommended a 19% minimum guaranteed benefit, only additional allowances remain to be agreed upon. Finalizing the NCWA-XI between CIL’s management and unions will alleviate financial pressure. The company anticipates a stable bottom line in upcoming quarters without the need for further provisions.