Amid coal shortage, CIL union threatens strike over wages

07 Jul 2022 CW Team

The Akhil Bharatiya Khadan Mazdoor Sangh (ABKMS), one of the leading unions at Coal India (CIL), has warned that workers may strike over delays in finalising salary increases, a move that would complicate efforts to meet the soaring fuel demand.

Talks held July 1 failed to reach any agreement over a pay deal, said Sudhir Ghurde, who represented the union at the meeting.

Workers are seeking a 47% increase in wages after having earlier demanded a 50% hike, while CIL has offered a 3% raise. A group of unions has written to the Union Coal Minister Pralhad Joshi, urging him to intervene to help the sides conclude negotiations.

This comes as the government struggles to meet the coal demand of power producers and other consumers of the fuel, amid the high costs of coal imports, with seaborne prices trading near record highs.

Wages of non-executive workers, which account for 94% of Coal India’s workforce, are revised every five years. The latest agreement is intended to cover salaries from July 2021, and will be applied retroactively once a deal is struck.

The wage talks are happening as rising global costs of food and fuel and a depreciating rupee are stoking inflation and denting government finances.

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