Coal India down 2% on strike call by staff

Moneycontrol Bureau

Coal India shares declined around 2 percent to Rs 252.55 on Tuesday after around 3.5 lakh employees decided to strike work from September 23-25, opposing the government’s decision to divest 5 percent stake in the company.  Employees attached to around five unions expect job cuts post CIL’s divestment.

The five trade unions including Indian National Trade Union Congress, All India Trade Congress, Bhartiya Mazdoor Sangh, Hind Mazdoor Sabha and Centre of Indian Trade Unions met on Sunday in Ranchi to take a final call on the proposed strike.

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Unions are also demanding that the sector be given infra status. They also want the government to give back CIL captive mines that are unexplored and were earlier allocated to private firms.

The unions have demanded superannuation, or a pension plan for the workers as per the Central government rules, reports CNBC-TV18. If workers actually go on strike, it could lead to a few million tonne loss of production of coal and this could create issues for e-auction and power sector supply of fuel.

Last month, around 30,000 workers of  Neyveli Lignite Corp had also struck work against the government’s divestment decision in the company. However, workers withdrew strike after the government put on hold a planned stake sale.

The government has plans to raise around Rs 40,000 crore via divestment in around 20 state-run firms including Indian Oil Corporation, Power Grid Corp, and Bharat Heavy Electricals Ltd. However, strike by unions may delay the process.