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Coal India contract workers await year-old Diwali gift

03 Feb 2014

Maharatna PSU Coal India Limited (CIL) recently doled out a huge special dividend of Rs19,000 crore to its shareholders - mainly the government. However, a large number of contract workers, who toil in the mines to meet the output targets, are still waiting for the Rs1,000 Diwali payout announced more than a year ago.

Workers' union sources peg the quantum of unpaid workers at around 70%. Around 65,000 contract workers are reported to be engaged in various CIL subsidiaries, such as the city-based WCL. It was after the unions threatened to launch a nationwide strike in October 2011 that CIL decided to hike the bonus for regular workers as well as grant a one-time payout of Rs1,000 termed as a 'Diwali gift' to contract workers.

Now, the subsidiaries are waiting for a specific policy guideline for the payout. Officials also admit that they lack proper data on contract workers.

The issue was raised during a meeting on mines safety last week at the ministry of coal. However, it was not discussed further on the grounds that it was not a safety related issue. The minutes of the meeting say that it has been over a year but the modalities of the Diwali gift have not been finalized yet. Subsidiaries like WCL, ECL, BCCL, SECL and MCL have implemented the scheme, but CCL, NCL and NEC have not. CIL's director (personnel) has been quoted saying the scheme has been implemented in some cases and will be done at the earliest for others.

However, WCL CMD DC Garg said the payment has not been made so far. "This was a one-time measure but no specific policy was announced after the announcement. No further steps can be taken without policy guidelines," said Garg.

It is difficult to keep track of the duration for which a contract worker has been engaged by WCL or any other subsidiary. These are mainly migrant workers and go away after brief stints. The managers in-charge of all the mines have been asked to report the figures of contract workers, which has not happened despite several reminders, said a management source.

However, a senior management officer added that there appears to be some confusion over the issue as a manager in one of the mines said the payment has been made in that area. This was revealed once inquiries were made following the TOI query.

SQ Zama, general secretary of Rashtriya Koyla Khadan Mazdoor Sangh (RKKMS), said contract workers have an equal contribution in the company's growth. There are many who have been working in underground mines since years as they have acquired the specialized skills, and it is difficult to find a replacement for them, he said. Zama added the issue will be resolved soon. He explained that it was termed as a Diwali gift as it was not a regular bonus under the Payment of Bonus Act.

During the meeting a representative of Directorate General of Mines Safety (DGMS) reported that almost 20% of deaths due to mine mishaps are of contract workers. Out of this, 40% are in the age-group of 18 to 25 years, and 45% aged between 26 to 35 years. The DGMS official noted that it was perhaps lack of training of contract workers that led to accidents and the industry needs to learn from past mistakes.

Source: The Times of India