Aug 21, 2013, 06.20 PM IST | Source: PTI

SAIL, union meet on Sat; non-execs may get 15% hike

The issue of wage revision at SAIL, pending for over 18 months, is expected to be settled this week, benefitting around 85,000 non-executives with at least 15 percent hike in basic and dearness allowances.

The issue of wage revision at SAIL , pending for over 18 months, is expected to be settled this week, benefitting around 85,000 non-executives with at least 15 percent hike in basic and dearness allowances.
    
The differences involving the rate hike are likely to be ironed out at the proposed meeting between the management of state-owned steel maker and the National Joint Committee for Steel (NJCS), an umbrella unit of the unions at SAIL's different plants, according to a source.

Also read: SAIL incurs Rs 42,101 crore capex till July
    
"NJCS has been demanding 21.6 percent hike in basic and dearness allowances for non-executives, while the management of SAIL is not ready to shell out more than 15 percent as the current industry situation is not conducive for such a steep hike," the source said.
    
NJCS has been countering the management argument, saying that it was asking only what was given in the previous time in 2007. SAIL hikes the wages every five years. The latest one has been due since January 1, 2012.
    
The source said: "The meeting is scheduled for August 24. The matter will be finalised there, and the negotiations are still going on. The management wants to settle it as quickly as possible. It has already conveyed to the union officials that the delay would also mean loss for workers as SAIL gives benefits prospectively, not retrospectively."
    
The market condition won't allow the management to go beyond 15 percent, sources said, adding that matching the earlier hike of 21.6 percent is just not possible.
    
When contacted, SAIL Director Finance Anil Choudhary refused to comment on the wage revision issue.
    
However, a source in the company said the management has already communicated its offer for a 15 percent hike to NJCS, which is believed to be discussing the issue among members.     

"We have already communicated to them that are willing to go up to 15 percent. They may be consulting among themselves. I don't think they are yet to make up their minds," he said.     

SAIL's manpower declined to under one lakh, as on June 30. However, its wage bill for the April-June quarter went up due to higher provisioning for wage revision and actuarial impact.
    
The company had clocked 35.25 percent dip in standalone net profit to Rs 450.91 crore during the first quarter of the current fiscal due to increased costs.

SAIL stock price

On April 17, 2014, Steel Authority of India closed at Rs 70.10, up Rs 0.55, or 0.79 percent. The 52-week high of the share was Rs 75.90 and the 52-week low was Rs 37.65.


The company's trailing 12-month (TTM) EPS was at Rs 6.32 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 11.09. The latest book value of the company is Rs 99.32 per share. At current value, the price-to-book value of the company is 0.71.

Set email alert for

ADS BY GOOGLE

Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Narendra Modi

86727.35 1,826.64 2.15%

1869

Bought today

4219

Sold today

1.27%

User holding

video of the day

Chandra says satisfied with TCS' FY14, FY15 to be better

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.