The government today said the upward revision in wages of Coal India Ltd (CIL) workers will not have any bearing on coal prices and there will be no hike in prices of the dry fuel.
The development comes close on the heels of the PSU last week agreeing in-principle to increase the wages of its workers by 25%, translating into an additional annual outgo of Rs 4,000 crore for the company.
"We don't think that there would be an increase in the prices of coal," Coal Minister Sriprakash Jaiswal told reporters here.
The minister also expressed confidence that the public sector firm will absorb the wage increase.
Replying to another query, the minister said that CIL will achieve its revised target of 440 million tonnes of coal production for the 2011-12 financial year.
The management of CIL and its five employee unions— INTUC, BMS, HMS, AITUC and CITU— are scheduled to meet again by the month-end, wherein certain issues are likely to come up for discussion and the wage increases would be finalised, a CIL official said.
Earlier, trade bodies had threatened to go on a strike over delays in a wage revision due from July 1, 2011.
Reacting to the wage hike development, All-India Coal Workers Federation General Secretary Jibon Roy had said, "The management's offer is for 25% hike for both wage and perks, but we are demanding a hike of 50% in perks. Post-retirement benefit should increase to 30% from 21%."
The issue of a wage hike came up for deliberations in the three-day meeting of the management and unions from January 10 to 12 in Nagpur.
"After discussions, the management agreed to 25% minimum guaranteed benefits on gross wages. The NCWA-IX (National Coal Wage Agreement) will be effective from July 1, 2011, for five years' tenure," INMF (INTUC) Secretary General S Q Zama had said.
Earlier, four of the five trade unions of the public sector firm had placed their wage demands with the management.
The unions had raised separate salary hike demands, ranging from 100% to 500%. The current average basic salary of CIL worker is about Rs 8,320 per month.
The All-India Trade Union Congress (AITUC) had asked for a revised salary of Rs 16,000 per month, while the Hind Khadan Mazdur Federation has asked for a minimum revised basic salary of Rs 40,000 per month.
The hike in wages was about 24% under the last round of the National Coal Wage Agreement, which lapsed on June 30, 2011.
