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Coal India Signs New Wage Agreement

  • Coal India Ltd (CIL) signed a wage pact late on Tuesday with five employee unions which would entail a 25 per cent increase as minimum guaranteed benefits (MGB).
  • The National Coal Wage Agreement-IX would cover the two public sector coal companies — CIL and Singareni Collieries Company Ltd (SCCL). The agreement was signed in New Delhi. Nirmal Chandra Jha, who retired on January 31, was among the signatories.
  • Coal Secretary Alok Perti was also present.
  • The wage pact, which also includes a hike in the coal workers' house rent allowances, will entail an outgo of Rs.6,500 crore in the first year and around Rs.4,000 crore annually, during the five-year tenure of the pact which is effective July 1, 2011.
  • Confirming the developments, CIL Director, Personnel, R. Mohandass, said committees had been set up to examine some other pending issues such as a hike in the pension rates (now at 25 per cent of basic) and on medical benefits for retired workers.
  • CIL had already provided Rs.754 crore per quarter, from the second quarter onwards, towards higher wage costs and expects profited to be maintained on account of the hike.
  • Payment of arrears too would commence soon, once orders are issued on the enhanced pay. The benefits cover some 3.5 lakh employees of Coal India.

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