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Business News/ Companies / News/  Difficult for Coal India to give 50% wage hike to workers, Chairman tells union
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Difficult for Coal India to give 50% wage hike to workers, Chairman tells union

Every fifth year, there is a revision of wages of CIL employees. The hike is due from July this year

Coal India had in 2017 signed a wage agreement with worker unions proposing a20% hike in salaries for five years.Premium
Coal India had in 2017 signed a wage agreement with worker unions proposing a20% hike in salaries for five years.

Hours after trade unions at Coal India Ltd demanded a 50% increase in workers' wages, company Chairman Pramod Agrawal has said that it will be difficult for the PSU to give a 50% wage hike to workers due to financial constraints.

Nathulal Pandey, president of the Hind Mazdoor Sabha-affiliated Hind Khadan Mazdoor Federation, said he had a meeting with the CIL chairman today during which the issue of workers' wages came up.

"The chairman told me that it is difficult for the PSU to give 50 per cent hike in workers' wages as the company is facing financial constraints. Even if the company gives a hike of let's say 10 per cent, it will result in a financial burden of around 5,000 crore to the PSU," Pandey added.

The demand is backed by expectations for rising profits in coming years amid a reduction in staffing and plans to increase production, said DD Ramanandan, secretary at the Centre of Indian Trade Unions, one of the associations active in Coal India. The unions had their first meeting with management last month to discuss the matter and more meetings will be held before they reach a decision, he said in a phone interview to Bloomberg.

Every fifth year, there is a revision of wages of CIL employees. The hike is due from July this year.

Coal India had in 2017 signed a wage agreement with worker unions proposing a20% hike in salaries for five years.

CIL, which accounts for over 80% of domestic coal output, has a total workforce of 2.59 lakh. Out of this, around 15,000 are executive staff.

Unions have submitted a charter of demands to CIL, including at least a 50% hike in salaries for the five-year period.

With agency inputs

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Published: 18 Aug 2021, 10:24 PM IST
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