Govt okays wage revision at CIL; AIACE flags pay conflict between officers, workers

As the Coal Ministry approved a wage revision agreement at Coal India Limited (CIL), the AIACE has flagged the issue of pay conflict between officers and workers
Coal India Ltd (CIL)
Coal India Ltd (CIL)PSU Watch

New Delhi: As the Coal Ministry has approved a wage revision agreement that was reached with trade unions for non-executive employees of Coal India Limited (CIL), the All India Association for Coal Executives (AIACE) has flagged the issue of pay conflict between officers and workers. The body, which represents executives employed in the coal companies, has said that after the implementation of the revision, the salary of workers may exceed that of Coal India and Singareni Collieries Company Ltd’s executive employees and has sought intervention from the management of CIL to prevent this.

In a letter dated June 23, the AIACE told the Coal India Chairman Pramod Agrawal, “Our association (AIACE) believes and is also firm that the NCWA-XI, when implemented will, result into pay conflict of workmen with that of executives (sic).”

Coal India Ltd (CIL)
Coal India to offer 0.15% shares via Employee OFS at this price

“… wage negotiations for workmen in CPSE are guided by DPE circular no. W02/0015/2016-DPE (WC)-GL-XXIV/17 dt. 24-11-2017 on the subject ‘Wage Policy for the 8th round of wage negotiations for workmen in Central Public Sector Enterprises (CPSEs)’ which says that, ‘The management of the concerned CPSEs have to ensure that negotiated scales of pay do not exceed scales of pay of executives/officers and non-unionized supervisors of respective CPSEs,’” said the AIACE.

AIACE seeks intervention from CIL to avoid pay conflict

“Hence, to counter the resultant pay-conflicts arising out of this Agreement, executives must be compensated by allowing pay-protection through Personal Pay package to them, so that their salary does not fall below the wage of workers. As such, we request CIL for initiating appropriate needful actions immediately to provide PERSONAL PAY (PP) to executives and eliminate the conflict latest by 30th September 2023,” said the AIACE.

“Otherwise, executives may be compelled to resort to agitational path including strike, if needed afterward,” it warned.

Coal India okayed 25% hike in allowances for non-executive employees

The agreement signed between the CIL management and the trade union representatives provides for a 19 percent of minimum guaranteed benefit from July 1, 2021, on emoluments — basic, Variable Dearness Allowance (VDA), Special Dearness Allowance (SDA) and attendance bonus besides a 25 percent increase in allowances. In a communication to Coal India, the ministry said, “The MoA (memorandum of agreement) for NCWA-XI as signed by Coal India Limited, Singareni Collieries Company Limited and trade union representatives, has been confirmed.”

The agreement was reached in May by the Joint Bipartite Committee for the Coal Industry (JBCCI)-XI consisting of representatives of CIL management, Singareni Collieries Company Limited (SCCL), five central trade unions - BMS, HMS, AITUC, CITU and Indian National Mine Workers' Federation (INMF).

The agreement will benefit around 2.81 lakh employees of CIL and SCCL who were on the rolls of the company as on July 1, 2021.

CIL has made a provision of Rs 9,252.24 crore for a period of 21 months effective July 1, 2021, to March 31, 2023, for this effect. The company's net profit declined 18 per cent to Rs 5,528 crore in Q4 of FY 2023 due to increased provisions towards wages.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

PSU Watch