Coal India concludes wage agreement with non-executive workers

  • CIL says a 19% minimum guaranteed benefit on emoluments including basic salary, variable dearness allowance, special duty allowance and attendance bonus, and a 25% increase in allowances have been agreed up for the over 2 lakh workers of the Maharatna company

Staff Writer
First Published22 May 2023, 09:34 PM IST
Shares of Coal India on the BSE closed at  <span class='webrupee'>₹</span>238.35 on Monday, lower by 0.60% from its previous close.
Shares of Coal India on the BSE closed at ₹238.35 on Monday, lower by 0.60% from its previous close.

New Delhi: State-owned Coal India Ltd (CIL) on Monday said it has inked an agreement with its non-executive workers over the revision of wages.

In a regulatory filing the coal mining major said that a 19% minimum guaranteed benefit (MGB) on emoluments including basic salary, variable dearness allowance (VDA), special duty allowance (SDA) and attendance bonus, and a 25% increase in allowances have been agreed up for the over 2 lakh workers of the Maharatna company.

The Joint Bipartite Committee for the Coal Industry (JBCCI)-XI consisting of representative of management of Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), five central trade unions -- BMS, HMS, AITUC, CITU and Indian National Mine Workers’ Federation (INMF), an affiliate of INTUC in its 10th

meeting held on May 20, 2023 recommended and inked the ‘National Coal Wage Agreement’ (NCWA)-XI for the period of five years with effect from July 1, 2021. 

“19% Minimum Guaranteed Benefit (MGB) w.e.f. 01.07.2021 on emoluments (i.e. Basic, VDA, SDA & Attendance Bonus) as on 30.06.2021 and 25% increase in allowances have been granted in NCWA-XI,” the filing said.

Around 2.81 lakh employees of CIL and SCCL who were on the rolls of the company as on July 1, 2021 would be the of the new wage agreement.

Coal India has made provision of 9,252.24 crores for a period of 21 months -- from July 1, 2021 to 31.03.2023 -- for this effect. “The final impact of 25% increase in allowances will be intimated shortly which is not likely to be significant,” it said. 

On February 7, Mint had reported that Coal India’s annual wage bill is set to reach around 46,000 crore with a likely increase of about 6,000 crore with the new wage agreement coming into effect.

The wages of non-executive employees of Coal India which account for 90% of its workforce are revised every five years and the latest revision has been due since 2021.

The employee benefit expenses constitutes the largest component in the total expenses, account for 45% of the company’s expenditure. The employee benefit cost of FY22 of 40,700.82 crore was as against 38,592.42 crore in previous year.

Coal India’s annual report for FY22 showed that it gross turnover increased 20% during the fiscal. Although, the median remuneration of all the employees incrased by 4.51%, the average remuneration decreased 0.04%.

Further, the annual report showed that the average remuneration of employees, excluding the key management personnnel (KMP) decreased by 0.07%, the average remuneration of KMPs decreased by 19.21% in FY2.

Shares of Coal India on the BSE closed at 238.35 on Monday, lower by 0.60% from its previous close.

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First Published:22 May 2023, 09:34 PM IST
HomeCompaniesNewsCoal India concludes wage agreement with non-executive workers

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