CIL’s management is likely to start negotiations with the trade unions this month over the salary hike, a move that is likely to have financial impact on the world’s largest coal miner to a large extent, a trade union leader said on Wednesday. Nathulal Pandey, president of HMS-affiliated Hind Khadan Mazdoor Federation, said Coal India Ltd’s (CIL) management held a meeting with the unions 2-3 days ago.
In the meeting, the PSU communicated the unions about the go-ahead from the coal ministry on the formation of a joint bipartite committee for wage negotiations for the coal industry, he added.
The committee for the coal industry comprises representatives from management and central employees’ unions.
An official of Coal India said the company will start the formation of the committee for wage negotiations this month to open the talks with the unions.
Pandey said that the committee is likely to be constituted soon. He was also of the view that unions have made charter of demands which also includes at least 50% hike in the salaries for the period of five years and these demands will be submitted to CIL soon.
Every fifth year at CIL, there is a revision of the wages of the employees and the hike is due from July 2021. When asked about the financial impact that the pay increase will have on the public sector undertaking (PSU), Pandey said it would be to a large extent.
However, according to a CIL official, the headcount of the firm is steadily falling as the net reduction of employees is to the tune of 13,000-14,000 per annum. The fall is likely to increase further due to natural attrition in the ensuing years, making the company leaner and fitter.
So, the average wage bill come down in future. This would soften the impact of wage bill to a large extent. Moreover, provision for wage bill is also kept in the accounts, the official added. He also added that the wage negotiation has not yet started. Assuming the financial implications at this juncture will not be right.
Coal India had in 2017 signed a wage agreement with workers unions proposing 20% hike in salaries for five years. CIL, which accounts for over 80% of domestic coal output, has a total workforce of 2.59 lakh. Of the total workforce, around 15,000 is the executive staff while the rest is the non-executive staff.
