Coal news and updates

A group of Coal India Ltd (CIL) executives has threatened to go on 3-day strike from March 13 unless issues related to performance linked pay and new pension scheme are resolved at the earliest.

     

The Coal Mines Officers' Association of India (CMOAI) has said it may resort to indefinite stir if the demands are not met even after the 3-day strike.

     

"Significantly, all the Maharatna PSUs except Coal India Ltd have already been given order for payment of Performance Related Pay (PRP) by their ministries concerned...We are constrained to communicate to you our strike notice w.e.f March 13, 2014 to meet our genuine and justified demands," CMOAI said in a letter to CIL Chairman and Managing Director.

     

"We, therefore, appeal to you and all concerned to take immediate remedial measures so that the long pending issues are settled expeditiously without any further delay. In case the demands are not fulfilled latest by March 12, 2014, this letter may be treated as our final notice for strike," it said.

     

The demands include finalisation and payment of PRP pending since 2007, immediate refund of recovered performance -linked pay advance from retired executives, immediate implementation of new pension scheme and removal of pay anomaly of different grades in general and in particular junior grades among others, it added.

     

Earlier, Department of Public Enterprises had strongly objected to the Coal Ministry's proposal on performance related pay for executives of CIL's subsidiaries from its consolidated account, stating that it will have wider ramifications as other PSUs may seek similar dispensation.

     

As per the DPE guidelines, in the absence of sufficient profit before tax (PBT), loss-making CPSEs are not allowed to distribute performance related pay and there is no concept of providing PRP based on the consolidated account of holding company.

     

"The DPE is not in favour of providing PRP to CIL's loss making arms, as it is not in line with its guidelines. They have strongly objected to any such move," the official had said.

     

However, the Coal Ministry had sought permission for allowing CIL to determine the corpus of PRP due since 2007 on profit before tax based on its consolidated accounts and not from the individual accounts of the subsidiaries.

     

CIL will have to shell out about Rs 200 crore on account of PRP to loss-making subsidiaries, including Eastern Coalfields Ltd (ECL), if the proposal is accepted.

 

 

 

Source: http://profit.ndtv.com/