State-run Coal India on Tuesday said it had signed a wage agreement with workers' unions to hike salaries of its non-executive staff by 20 per cent for five years, ending months of negotiations over the increase that affects pay until 2021.
Wage Agreement of the employees has been due from 1 July 2016. The negotiation for wage agreement that has been on the negotiation table for more than one year has been concluded on Tuesday.
“Trade Union representatives were insistent for 50 per cent of wage increase. Their demand was there should be 50 per cent wage increase for the employees. But considering the country’s position, CIL’s benefit and financial position, a new record has been created by agreeing 20 per cent increase on wages,” Ministry of Coal said in a statement.
Today’s wage agreement has been hailed as a historic one by the trade union representatives and management, the Ministry said.
The special accomplishment of this agreement is that every employee shall get one day’s rest in a week, as per rule, so that the employee shall have relaxation and shall get an opportunity to spend time with their family paving way for improvement in quality of life through Work-Life-Balance. The representatives of Trade Union and CIL Management have taken a decision to work together in the spirit of team work and increase productivity to unprecedented level.
It has also been decided that from 16th October to 15th November, 2017 welfare, safety and productivity drive shall be carried out. In each subsidiary company from CIL’ management, Chairman-cum-Managing Director CIL, Director (P&IR), Director (Finance), Director (Technical), Director (Marketing) and CMD of respective subsidiary company, Functional Directors and from trade union side honourable Basant Kumar Ray, Ramendra Kumar, Ramanandan shall participate in this drive.
To implement the agreement in totality, the payment of arrears would be made in three stages – 40 per cent, 30 per cent & 30 per cent. For the welfare of workers an amount of Rs 40,000 would be paid to the employees before Diwali as a one-time advance.
CIL and its employees will contribute, for the first time, 7 per cent towards pension fund which will help retired employees to avail the pension facility. To implement the scheme of medical treatment to the retired employees, CIL will contribute an amount of Rs 18,000 for each employee towards contributory post retirement medical scheme, apart from Rs 40,000 by each employee contributed towards the said scheme. This fund will be operated through a Trust.