In consultation with trade unions, a wage-revision agreement was reached for the non-executive employees of Coal India (CIL). As per the agreement, the employees were to be provided 19 per cent of minimum guaranteed benefit on compensation [basic, special dearness allowance (SDA), variable dearness allowance (VDA), attendance bonus] along with a 25 per cent hike in allowances from 1 July, 2021. This wage revision agreement has been approved by the Ministry of Coal. The same will benefit about 2.81 lakh employees of CIL and Singareni Collieries Company (SCCL).
A memorandum of agreement to this effect has been entered into with CIL, SCCL and trade union representatives of Bharaiya Mazdoor Sangh (BMS),Hind MAzdoor Sabha (HMS), All India Trade Union Congress (AITUC), and Centre of Indian Trade Unions (CITU) and Indian National Mine Workers’ Federation (INMF).
About Rs 252.24 crore has been set aside for a period of 21 months (starting 1 July, 2021, to 31 March, 2023) towards wage revision. It is pertinent to mention here that CIL’s net profit reduced by 18 per cent to Rs 5,528 crore in the fourth quarter of FY 2023, due to the spend on increments.
Recently, Coal India announced an employee offer for sale (OFS) in which it will sell more than 92 lakh equity shares from 21 June to 23 June, with an expected fundraising of approximately Rs 209 crore. During this OFS, eligible employees will be allowed to purchase up to 92,44,092 equity shares at Rs 226.10 per share, each having a face value of Rs 10. The aim behind this move is to involve the company’s workforce in its growth and overall success.