Under pressure from trade unions threatening to launch a massive nationwide strike, state-owned monopoly coal producer Coal India Ltd (CIL) on Monday relented on its earlier stand to limit bonus payment to Rs 17,000 for each of its 3,66,000 workers on its payroll.
The company management blinked and finally agreed to raise bonus by Rs 3,000 per worker during negotiations with unions in a meeting chaired by Coal Minister Sriprakash Jaiswal.
“All union leaders have agreed on a bonus payment of Rs 20,000 in addition to a Diwali gift worth Rs 1,000 for every worker. The issue, which had erupted primarily due to lack of discussions between the two parties, has ended,” Jaiswal announced after the hour-long meeting.
The increased bonus, along with a Diwali gift for every worker, would increase the coal miner’s total outgo on this account from Rs 622 crore estimated earlier to Rs 768 crore now. “The additional financial burden on the company after Monday’s decision would be around Rs 144 crore,” CIL Chairman N C Jha, who was present at the meeting, said. In addition to the ex-gratia announced for workers on pay-roll, the company also agreed to present a “Diwali gift” worth Rs 1,000 to each of its 35,000 contract workers.
Coal India is world’s largest producer of coal. While its production remained flat at 431 mt last fiscal, the company posted a 12.9 per cent jump in net profit at Rs 10,867 crore owing to higher realisation from selling the fuel at market price.
CIL produced 176 mt during the first half of the current fiscal, five per cent less as compared to the production in same period last year. Coal India is also India’s largest listed employer with a total employee strength of 397,000.
“We have sufficient revenues to meet the additional burden. We had to revise our principles, pertaining to coal demand and shortage, to meet this demand for incremental bonus payment,” Jha said.
Speaking on the same issue with Business Standard last week, Jha had termed the demand as “unjustified”. “This bonus is given out of our profit. There was zero growth in production last fiscal. So there was no additional contribution by anybody in the form of physical performance,” Jha had said.
Meanwhile, leaders representing the five unions — All India Trade Union Congress (AITUC), Indian National Traded Union Congress (INTUC), Bharatiya Khadan Mazdoor Sangh (BMS), Hind Khadan Mazdoor Federation (HMS) and All India Coal Workers Federation (AICWF) — rejoiced after Monday’s decision.
“We have forgotten the past today. The bonus hike announced on Monday would be enough to motivate workers. The additional financial burden on the company would be met by additional performance,” Rajinder Prasad Singh, general secretary of INTUC, announced after attending the meeting. “The process of collective bargaining was followed today. We were not happy to go on a day-long strike last week,” S Q Zama, secretary general of Indian National Mineworkers Federation added. No decision was taken on the issue of wage hike in Monday’s meeting.
Jaiswal also rejected all reports of coal shortage saying there is not a single power station in the country at present with coal stocks at critical levels. According to data obtained from Central Electricity (CEA), however, half of the overall 86 power stations are currently running on critical stocks of less than seven days.
