Opposing the planned divestment of the government's stake in Coal India (CIL), trade unions have warned that employees will go on a week-long strike from October 18, the same day that the mega public offer is expected to be launched.
The strike is most likely to disrupt the supply of coal to major industries, including power sector units, as CIL -- which accounts for over 80 per cent of domestic coal production -- is the biggest supplier of the dry fuel.
"We are opposing disinvestment in Coal India and have taken a decision that employees will go on a seven-day strike opposing the 10 per cent disinvestment," Centre of Indian Trade Unions (CITU) National Secretary Jibon Roy told PTI.
When contacted, CIL Chairman Partha S Bhattacharyya said, "Yes, we have received the strike notice from trade unions. They have threatened to proceed on strike from October 18, opposing disinvestment and demanding regularisation of contract workers."
"We will hold negotiations with the unions and the company is hopeful that they will withdraw the notice in the larger interest of the company, because the IPO is necessary for its listing," he said.
The coal behemoth is all set to launch its initial public offer (IPO) on October 18, billed as the country's largest ever, through which the government expects to raise about Rs 15,000 crore by divesting a 10 per cent stake.
Roy said all major unions, including the Bharatiya Mazdoor Sangh (BMC) and Hind Mazdoor Sabha, will go on strike against the proposed disinvestment.
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All-India Trade Union Congress (AITUC) General Secretary and Indian National Mines Workers President Rajendra Singh said workers are apprehensive that the government might divest more of its stake in the coal company in future.
A Hind Mazdoor Sangh official said workers were ready to go on strike.
Singh also said a meeting of the central trade unions has been convened in Delhi on October 5, where a final decision will be taken to go on strike.
This is not the first time that trade unions have gone on strike against the government's disinvestment plans. A segment of workers owing allegiance to CITU had gone on a one-day strike against the disinvestment programme on May 5.
Another strike called in April-May was withdrawn following assurances by the company as well as Finance Minister Pranab Mukherjee that minimal disinvestment would be done for listing of the company.
While conferring Navratna status on CIL in October, 2008, the government had asked the coal firm to get listed within three years, which required disinvestment of at least 10 per cent of the government's holding.
CIL, which has a workforce of nearly four lakh employees, accounts for more than 80 per cent of the country's total coal production and its output was recorded at 431 million tonnes last fiscal.