GoM okays wage deal for coal firms

The national coal wage pact covering 6,00,000 lakh workers to cost CIL & arms Rs 7,000 cr.

Coal companies will now have to shell out an additional Rs 7,000 crore on account of a wage settlement which was approved today by a group of ministers (GoM) headed by Defence Minister Pranab Mukherjee.

The national coal wage agreement (NCWA) VII, covering six lakh workers of Coal India Ltd (CIL) and its subsidiaries, will be signed between the representatives of trade unions and the company management here tomorrow.

The group of ministers met to consider the understanding reached between the management coal public sector undertakings in the coal sector and union leaders earlier.

This wage settlement was to come in force for the period between July 2001 and June 2006, but it got delayed due to differences between the management and the workers.

Coal unions had called for a strike on July 18, which would have resulted in an estimated daily production loss of one million tonnes of coal.

Coal ministry officials said during the meeting, Minister of State for Coal and Mines Dasari Narayan Rao gave an account of the understanding reached in respect of payment of arrears arising out of NCWA VII, compassionate appointments and minimum guaranteed benefits to workers.

According to the understanding reached between the management and the unions, employees who "separated" from service in June 2001 or shall "separate" soon will be paid arrears.

About other employees, the modalities of payment will be worked out jointly by both the sides. With regard to compassionate appointments, the existing provisions will continue till a new scheme is jointly evolved.

Under minimum guaranteed benefits, every worker will be assured a minimum benefit of Rs 300 per month over and above the 15 per cent interim relief, which is being currently paid to workers.The CIL management agreed to the demand of 100 per cent dearness allowance neutralisation.

Seal a deal

---

• Wage settlement comes into force for July 2001-June 2006 period
• It was delayed due to worker-management rift
• Later, an agreement reached between the two parties stated employees who "separated" from service in June 2001 or shall "separate" soon will be paid arrears
• Under minimum guaranteed benefits, every worker was assured a minimum benefit of Rs 300 per month over and above the 15%