coal workers and management sign wage agreement

basic pay, social security increased substantially

coal india to pay arrears of rs.7,300 crore

Friday, July 15, 2005

About 6 lakh workers of Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) will receive substantially increased wages and allowances with effect from 1st July, 2001. An agreement to this effect known as National Coal Wage Agreement-VII was signed by the Joint Bipartite Committee for Coal Industry (JBCCI), a body of representatives of the management and workers, here today. Under the agreement, CIL will have to pay arrears to workers amounting to about Rs.7,300 crore and SCCL about Rs.1,460 crore. CIL has about 5 lakh workers while SCCL has about one lakh workers. The agreement follows protracted negotiations between the Management and Workers' Unions.

Minimum guaranteed benefit for each worker shall be Rs.1,185.39 per month or 15 per cent of the pre-revised basic pay plus Rs.300 which is higher.

The rate of annual increment has also been revised in line with the system prevailing in other PSUs. It will be 2.50 per cent to 3.00 per cent of initial basic pay as against Rs. 50 to Rs.200 in NCWA-VI.

Keeping in view the hazardous nature of work and difficulties associated with coal mining, the Unions' demand for 100 per cent D.A. neutralisation has been agreed to in consideration of the assurance given by the unions to co-operate with management in improving production and productivity through mutual discussion of production plans in the existing joint forums.

Social security for coal workers has been improved with increase in the Life Cover Scheme by 33 per cent and Ex-gratia payment by 20 per cent.

The calculation methods of underground allowance have been simplified. The allowance shall now be 10 per cent of basic pay upto Rs.9000 and 12.50 per cent thereafter.

The agreement shall be applied in all coal companies including Bharat Coking Coal Ltd. and Eastern Coalfields Ltd. which are under BIFR. Arrears shall be paid to those who separate from service on various accounts. For others, modalities of payment shall be worked out jointly keeping in view the revival packages of BCCL and ECL at the earliest.

Other perquisites such as Transport Subsidy, Additional Transport Subsidy, Conveyance Allowance, House Rent etc. have been commensurately increased.

Compassionate appointment provisions of NCWA-VI shall operate till a new scheme is jointly formulated keeping in view the various verdicts of the Supreme Court at the earliest.

The Minister of State for Coal & Mines, Dr. Dasari Narayana Rao, who was present on the occasion of signing of NCWA-VII described the agreement as historic. It is for the first time in recent times that coal wage agreement has been signed by all the five central trade unions and without a strike. Dr. Rao said, the agreement has addressed the concerns of the works in coal industry and it will enable coal PSUs meet the need for increased production as various concessions made to the workers will act as motivational tools. The Minister complimented both the unions and the management for an amicable agreement marked by a healthy respect for each other's concerns.

MLD/SCH