Coal news and updates

Amidst the ongoing tepid demands for its coal which resulted in Coal India posting its worst result ever, the company is faced with a new challenge which may potentially stress its margins further by raising its expenses — workers’ and officers’ salaries needs to be revised this year.

 

While senior company officials are working out the means to arrange the extra income to fund the pay hike, trade unions have demanded a 50 per cent increase. Senior officials said given the demand situation, the company was not in a position to yield to union and would try to negotiate a fair hike considering the market conditions.

 

“Demand is already stressed and we are looking at means to arrange the necessary revenue to fund the hike,” a senior Coal India executive said, adding that collective bargaining would decide the outcome.

 

 

Sources in the company hinted that the pay hike this year might not be even 25 per cent — the rate of increase which took place five years ago. Following the last salary revision in 2011, Coal India’s annual salary bill was raised by Rs 5,000 crore.

 

“Things are different now. Previously, the demand for coal exceeded supply and now supply is exceeding demand,” the executive, quoted earlier, said.

 

As many as 265,876 workmen, 18,213 executives and 30,817 supervisors of the company await the hike.

 

Officials are worried as the average price realisation from coal sales has taken a hit by six per cent, at Rs 1,344 a tonne. Even e-auction prices, compared to the previous year, are down by 27 per cent which has led to a Rs 1,000-crore decline in income.

SOurce: Business Standerd