The National Joint Committee for the steel industry (NJCS) today concluded an agreement for a revision of the wage structure of the Steel Authority of India Ltd (SAIL) and Tata Steel in the presence of the union minister of steel, Braja Kishore Tripathy.
This is the seventh agreement concluded by the NJCS. Unlike the previous agreements, the revised wage structure under the present agreement will be applicable for 10 years from January 1, 1997. However, the steel workers will receive actual monetary benefits from January 1, 2001.
The agreement, signed by representatives of the managements of SAIL and Tata Steel and trade union leaders affiliated to INTUC, CITU, AITUC and HMS, will benefit around 1.6 lakh workers of the two major steel producers.
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Speaking on the occasion, Tripathy said, the agreement would fulfil the long-standing demands of the workers and help establish a peaceful and harmonious working atmosphere in the steel plants. Thanking the employees for their patience, Tripathy said, the revision was delayed on account of the sluggish market and huge debt burden in SAIL.
The agreement provides for minimum wages of Rs 4,000 at the All India Consumer Price Index (AICPI) 1708. It gives revised rates of increment ranging from Rs 80 in the lowest pay scale (S-1) to Rs 200 in the highest scale (S-10). Under the agreement, the steel workers will receive a guaranteed benefit calculated at the rate of 20 per cent of their pre-revised basic pay on December 31, 1996.
The agreement also assures payment of two increments from April 1, 2001 to the workers, as well as an additional amount equal to one increment from April 1, 2002. Another highlight of the agreement is that all workers would get quarterly dearness allowance neutralisation at 100 per cent for any shift in the AICPI beyond 1708 (base 1960=100).