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Wage revision: Coal India agrees on 25% hike in allowances

Coal India has finally reached an agreement with its 2.81-lakh-strong non-executive workforce, bringing the long-drawn wage revision negotiations to a close

PSU Watch Bureau

New Delhi: Maharatna PSU Coal India said that it has finally reached an agreement with its 2.81-lakh-strong non-executive workforce on Monday, bringing the long-drawn wage revision negotiations at the state-run coal mining company to a close. Under the agreement, a 19 percent minimum guaranteed benefit from July 1, 2021, on emoluments (basic, VDA, SDA & attendance bonus) and a 25 percent increase in allowances have been granted, said Coal India in a regulatory filing.

The "Joint Bipartite Committee for the Coal Industry (JBCCI)-XI consisting of representatives of Management of Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), five central trade unions i.e. BMS, HMS, AITUC, CITU, and Indian National Mine Workers’ Federation (INMF), an affiliate of INTUC in its 10th meeting held on May 20 recommended and inked National Coal Wage Agreement (NCWA)-XI for the period of five years with effect from July 1, 2021," Coal India told the bourses.

Wage revision will impact 2.81 lakh CIL & SCCL employees

As per the filing, the agreement will impact around 2.81 lakh employees of CIL and SCCL who were on the rolls of the company as on July 1, 2021. Under the NCWA-XI, employees will receive a minimum guaranteed benefit (MGB) of 19 percent on their emoluments, including Basic, Variable Dearness Allowance (VDA), Special Dearness Allowance (SDA), and Attendance Bonus, as on June 30, 2021, the filing added.

CIL allocated Rs 9,252.24 cr for wage revision

CIL has allocated a provision of Rs 9,252.24 crores for a duration of 21 months, starting from July 1, 2021, until March 31 for effective implementation of the wage agreement.

25% increase in allowances

The filing also noted that the exact impact of the 25 percent increase in allowances is yet to be determined, initial indications suggest that it will not be significantly burdensome for CIL. The final assessment of this impact will be communicated shortly.

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