A billboard advertisement for Coal India Ltd. is displayed in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Coal India, Unions Settle Salary Hike Issue

The stalemate between Coal India Ltd. management and unions over the issue of salary hike has come to an end as both have reached an understanding.

We have reached an understanding with the Coal India management for 20 percent minimum guaranteed benefit.
DD Ramanandan, General Secretary, All India Coal Workers Federation

The central trade unions at the coal public sector undertaking (PSU) had been demanding 25 percent increase on gross wages as on June 30, 2016, plus four percent as perks.

Ramanandan said the unions have settled for 20 percent minimum guaranteed benefit as the management was earlier not contributing to the medical scheme, but now has agreed to provide Rs 18,000 per person.

Already, the management is contributing 1.16 percent for the pension funds, which will be increased to 7 percent.
DD Ramanandan, General Secretary, All India Coal Workers Federation

Every five years, all central workmen unions negotiate with the management for a salary hike through a series of meetings. Validity of the last pay hike expired on June 31 last year.

SQ Zama, Secretary General of Indian National Mine Workers Federation affiliated to Indian National Trade Union Congress (INTUC), said the 25 percent increase on gross wages is less than its expectations.

The trade unions and the Coal India management met for three days – on August 17-19, in Ranchi and in the national capital on Thursday to deliberate on the issue of wage hike.

Five Operating Central Unions In The Coal Industry

  • Indian National Trade Union Congress (INTUC)
  • Bharatiya Mazdoor Sangh (BMS)
  • Hind Mazdoor Sabha (HMS)
  • All India Trade Union Congress (AITUC)
  • Centre of Indian Trade Unions (CITU)