Coal India workers' unions seek coal ministry’s intervention to expedite wage revision

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Unions of workers of Coal India Ltd have sought a meeting with the Union Coal Ministry to seek their intervention in the ongoing wage negotiations after the meeting between them and the company ended without an agreement earlier this month, members of one of the unions told Moneycontrol.

Some members of the union said they may consider a strike if their demands are not taken up. If that happens, it would potentially disrupt coal output and may cripple the power sector which anyway faces supply challenges in the monsoon, and has been trying to avoid another power crisis after the one witnessed in March-April.

“We have sent a request to the Coal Minister for a meeting. Only after we meet him will we decide on a course of action,” Sudhir Ghurde, general secretary, Akhil Bharatiya Khadan Mazdoor Sangh, told Moneycontrol. Akhil Bharatiya Khadan Mazdoor Sangh is the mining industry sub-group of RSS-affiliated trade union Bharatiya Mazdoor Sangh (BMS).

Trade unions like the Bharatiya Mazdoor Sangh (BMS), All India Trade Union Congress, Hind Mazdoor Sangh (HMS), and Centre of Trade Unions have so far held five rounds of meetings with the Coal India-constituted joint bipartite committee for the coal industry (JBCCI) under the eleventh round of National Coal Wage Agreement (NCWA– XI). The meetings have been held over a span of a year, the last one being held on July 1.

“If the unions want to meet the coal ministry, it is their prerogative. We are very clear that we will follow the due process and agree to the mutually agreed terms between them and the JBCCI. Our management wants to complete the process soon,” a senior executive from Coal India said.

The unions had initially demanded a 50 percent hike in salaries of non-executive workers of Coal India, while the latter offered a 3 percent increase. The unions later brought down their demand to a 47 percent increase. The salaries were last revised five years ago when the 10th wage agreement was implemented.

On July 6, the Ministry of Coal said in a statement that Coal India aims to conclude the wage pact for the non-executive workforce at the earliest. “CIL maintains amicable and harmonious relations with its Unions and strives to avoid any discordance or strikes in view of the importance of the coal sector in the country. The negotiations are in progress and it usually takes time to conclude the pact,” the statement said.

Coal India revises the wage for its non-executive workers, which account for 94% of its total workforce, every five years. The revision is due in July 2021 and once approved, will be paid on a retrospective basis.

Analysts believe that Coal India would be walking a tightrope as any revision in wages will have a significant impact on its expenses at a time when the company is pushing its capex but is unable to increase the price of coal in line with rising costs. But the bigger concern is that if the workers potentially go on strike, it may lead to a power crisis as demand for domestic coal continues to be strong due to a pick-up in demand for power.

“Strong operational Q1FY23 performance indicates a better FY23: With daily power demand consistently crossing 200GW and expected to increase further, as well as continued high international coal prices, we expect dependence on domestic coal to remain strong and e-auction premiums to remain elevated in FY23. This is likely to result in a better FY23, both in terms of volumes and prices,” ICICI Securities said in a report dated July 4 on Coal India.