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Coal Unions Seek Their Share of Spoils

  • As Coal India Ltd (CIL) shifts to a new system of grading coal that will fetch it higher price for the same type, its unions also want their share. It's workers and non-executive staff are also now demanding certain facilities such as air travel allowance during holidays, so far available only to executives, in addition to pay hike.Workers and management representatives under the joint bipartite committee for coal industry (JBare negotiating a new wage agreement that is renewed every five years. The three-day parleys are being hosted by Western Coalfields Ltd (WCL), one of CIL subsidiaries, in the city. In a move that has left industries complaining, CIL has shifted to grading of coal under the gross calorific value (GCV) system from the earlier method of useful heat value (UHV). The new method brings a wider range of coal in higher price bracket that is expected to give a major boost to company's profits.

  • The unions are demanding a direct hike of 24% in pay. Management, on the other hand, is offering a 13% increase, said a source in WCL. If the unions' demand is accepted, it will lead to an outgo of Rs 3,000 crore for CIL and Rs 600 crore for WCL each year. Under the management's offer, the burden will be Rs 1625 and Rs 400 crore respectively.The unions are also pressing for reducing the gap between wages of lower staff and executive cadre. "The last pay revision for executives has led to a huge gap with lower cadre. Earlier the senior personnel in staff and worker cadre got just marginally less than fresh executives. The gap has now increased," said a union press release, The performance related pay (PRP) offered only to executives is one of the reasons for it, it added.

  • The workers organisations have estimated an increase of 35% in CIL's earnings. In February 2011 itself, coal prices were raised by up to 30% and now new gradation formula will lead to a 30% to 60% increase in prices for same quality of coal, the union said.Another key demand is a post retirement medical scheme for the non-executives in line with contributory facility extended to retired executives.As the unions and CIL management talked new wage agreement at Hotel Centre Point, outside the WCL headquarters in Civil Lines, a small group raised pro-Telangana slogans. These were workers from the Singerani Coalfields Ltd in Andhra Pradesh affiliated to Rashtriya Koyla Kamgar Sangharsh Sangh. Members of this union had blockaded coal supplies during the Telangana agitation and are now wanting to take part in wage negotiations. Around 500 members had reached Nagpur to press for their demand.

  • The company is not a CIL subsidiary and is run by Andhra Pradesh government. However, since the wage talks covered the entire coal industry they wanted a representation too. One of their demands is income tax exemption to coal sector on the grounds that it is the riskiest peace time profession."We want a minimum 60% increase in wages but these unions are demanding just 35%. They may settle for even less," said Kajarela Malliapa, president of Sangh. He claimed the union is prepared for a Telangana protest like showdown if the demands were not met.

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