Coal India Limited (CIL) may enter the defining phase of wage negotiation beginning today (January 10, 2012).
The three day joint bi-partite consultative committee (JBC) meeting for the National Coal Wage Agreement-IX will be held at Nagpur between January 10 and January 12. The five-year pact will be brought into effect from July 1.
With labour unions already pitching for a nearly 30% salary hike — higher than a 24% hike in NCWA-VIII — during the last JBC meeting in Bhubaneswar held during December last year, sources expect discussions to enter the most crucial phase at Nagpur.
CIL had made an opening offer of a 10% salary hike during the latest negotiation.
While it has yet to be seen how the coal major would negotiate the stiff demand from labour unions, sources said that a 30% wage hike would increase the company's employee-related expenditure by nearly Rs6,000 crore annually – double the current rate of provisioning by the company.
CIL provided for a little over Rs750 crore towards the wage pact impact during the July-September quarter. On an annualised basis, the company therefore is providing approximately Rs3,000 crore.
Assuming that the latest round of price rationalisation — brought into effect from January 1 — would boost the company's earnings by over 12% (approximately Rs6,000 crore annually), a 30% will therefore neutralise the gains on the earnings front.
....more info
The three day joint bi-partite consultative committee (JBC) meeting for the National Coal Wage Agreement-IX will be held at Nagpur between January 10 and January 12. The five-year pact will be brought into effect from July 1.
With labour unions already pitching for a nearly 30% salary hike — higher than a 24% hike in NCWA-VIII — during the last JBC meeting in Bhubaneswar held during December last year, sources expect discussions to enter the most crucial phase at Nagpur.
CIL had made an opening offer of a 10% salary hike during the latest negotiation.
While it has yet to be seen how the coal major would negotiate the stiff demand from labour unions, sources said that a 30% wage hike would increase the company's employee-related expenditure by nearly Rs6,000 crore annually – double the current rate of provisioning by the company.
CIL provided for a little over Rs750 crore towards the wage pact impact during the July-September quarter. On an annualised basis, the company therefore is providing approximately Rs3,000 crore.
Assuming that the latest round of price rationalisation — brought into effect from January 1 — would boost the company's earnings by over 12% (approximately Rs6,000 crore annually), a 30% will therefore neutralise the gains on the earnings front.
....more info