New Delhi: State-owned Coal India Limited (CIL) on Monday said it has reached an agreement with its non-executive employees regarding revision of wages.
In a regulatory filing, the coal mining major said there has been a 25% increase in minimum guaranteed benefits (MGB) and allowances by 19% on emoluments including basic pay, variable dearness allowance (VDA), special duty allowance (SDA) and attendance bonus. Consensus has been made for more than 2 lakh employees of the Maharatna company.
The Joint Bipartisan Committee for Coal Industry (JBCCI)-XI consists of representatives from the Management of Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), five Central Trade Unions – BMS, HMS, AITUC, CITU and Indian National. Mine Workers Federation (INMF), an affiliate of INTUC in its 10th class
In the meeting held on May 20, 2023, the ‘National Coal Wages Agreement’ (NCWA)-XI was recommended and signed for a period of five years from July 1, 2021.
“Enhancement of 19% Minimum Guaranteed Benefit (MGB) and Allowances by 25% with effect from 01.07.2021 on emoluments (i.e. Basic, VDA, SDA and Attendance Bonus) up to 30.06.2021 has been granted,” the filing said.
Around 2.81 lakh employees of CIL and SCCL who were on the rolls of the company as on July 1, 2021, will be eligible for the new wage settlement.
Coal India has provisioned 9,252.24 crore for a period of 21 months – from 1st July, 2021 to 31.03.2023 – to this effect. “The final impact of the 25% increase in allowances will be intimated shortly, which is unlikely to be significant,” it said.
On February 7, Mint had reported that Coal India’s annual salary bill is about to reach With potential growth of around 46,000 crores 6,000 crore with the new wage settlement coming into effect.
The wages of non-executive employees of Coal India, which constitute 90% of its workforce, are revised every five years and the latest revision is due from 2021.
Employee benefit expense is the largest component of total expense, accounting for 45% of the company’s expense. Employee Benefit Cost for FY22 40,700.82 crore as against 38,592.42 crore in the previous year.
Coal India’s annual report for FY22 showed that the gross turnover grew by 20% during the financial year. While the average wage of all employees increased by 4.51%, the median wage decreased by 0.04%.
Further, the annual report revealed that the average remuneration of employees excluding key management personnel (KMP) declined by 0.07%, with the average remuneration of KMPs declining by 19.21% in FY2018.
Coal India shares closed at Rs 7.77 on BSE. 238.35 on Monday, down 0.60% from its previous close.
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