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India’s Mine Unions, Coal India Reach 5-Year Labour Agreement

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6 February, 2012

Some 360,000 Indian miners, many of them represented by the ICEM affiliate, the Indian National Mineworkers’ Federation (INWF), have a new five-year labour agreement achieved under the National Coal Wage Agreement. The agreement with the world’s largest coal company, state-owned Coal India Ltd. (CIL), and five unions calls for 25% wage increases over the term of the agreement.

Signed on 31 January in Delhi, it is backdated to 1 July 2011. The agreement was finalised by the joint bipartite consultative committee (JBCC) on 27-28 January.

“After discussions, the management agreed to a 25% minimum guaranteed benefits on gross wages,” said General Secretary S Q Zama of INMF, affiliated to the Indian National Trade Union Congress (INTUC). Along with Brother Zama, INMF and INTUC leaders Sanjeeva Reddy, Rajendra Prassad Singh, S Panigrahi, GVR Sarma, B Venkat Rao and R Algamkar took part in the signing.

An increase in all basic allowances of 88% will take effect throughout the agreement, and higher housing allowances in non-urban areas and management substitution bonuses were also won for workers filling those roles.

Further gains will be made when reports are submitted and agreed to on retirees’ medical benefits, and on aspects pertaining to contract workers.

The other unions involved in this ninth set of National Coal Wage talks are affiliates of the Centre of Indian Trade Unions (CITU), the Hind Mazdoor Sabha (HMS), the Bharatiya Mazdoor Sangh (BMS), and the All-India Trade Union Congress (AITUC). The new accord will cost CIL US$788.6 million over the five-year period.