Wednesday, 24 Aug 2011
ET reported that Coal India Unions have demanded a 100% jump in their salaries a demand that would put the state run entity under a severe strain as its annual wage cost of INR 20,000 crore already accounts for 42% of its expenditure.
In fact, one of the unions has demanded a five fold hike.
Analysts are concerned about the impact of new salary on Coal India's finances. Mr Rajesh Agarwal, head of research at Eastern Financiers said that "It will make a huge dent on the bottomline.”
JP Morgan said in a research note that it was expecting 15 to 20% rise in wage costs.
Last week, the Coal India management met the five unions for the first time to negotiate salary hike under the National Coal Wage Agreement, which expired on June 30.
Mr R Mohan Das executive director personnel and industrial relation told ET that "The unions have asked for different salary hikes. So, we have asked them to discuss among themselves and come up with a common minimum demand when they meet us again on September 22.”
The basic salary of a Coal India worker is around INR 8,320 per month. While the All India Trade Union Congress has asked for a revised salary of INR 16,000 per month, the Hind Khadan Mazdur Federation has asked for a minimum revised basic of INR 40,000 per month
(Sourced from ET)
ET reported that Coal India Unions have demanded a 100% jump in their salaries a demand that would put the state run entity under a severe strain as its annual wage cost of INR 20,000 crore already accounts for 42% of its expenditure.
In fact, one of the unions has demanded a five fold hike.
Analysts are concerned about the impact of new salary on Coal India's finances. Mr Rajesh Agarwal, head of research at Eastern Financiers said that "It will make a huge dent on the bottomline.”
JP Morgan said in a research note that it was expecting 15 to 20% rise in wage costs.
Last week, the Coal India management met the five unions for the first time to negotiate salary hike under the National Coal Wage Agreement, which expired on June 30.
Mr R Mohan Das executive director personnel and industrial relation told ET that "The unions have asked for different salary hikes. So, we have asked them to discuss among themselves and come up with a common minimum demand when they meet us again on September 22.”
The basic salary of a Coal India worker is around INR 8,320 per month. While the All India Trade Union Congress has asked for a revised salary of INR 16,000 per month, the Hind Khadan Mazdur Federation has asked for a minimum revised basic of INR 40,000 per month
(Sourced from ET)
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