Coal news and updates

Coal India, union agree on bonus

Government-owned Coal India has granted a bonus of Rs 48,500 each to its 332,000 non-executive workforce.

The unions had pressed for a higher payout on the ground that if the company has declared a special dividend for the government, workers should get their share, too. This will entail a payout of Rs 1,600 crore.

The decision was taken at a meeting between the senior management of Coal India and the other public sector coal companies and five central trade unions, on Wednesday in Delhi.

"As regards payment of bonus to the contractual workers engaged in mining, the management has assured us of resolving the matter shortly, after internal consultation on the amount and mode of payment," said S Q Zama, secretary general of Indian National Mine Workers Federation.

There are estimated to be at least 100,000 contractual workers.

Union leaders had demanded at least Rs 54,000 but finally agreed for Rs 48,500. “We should understand that with global coal prices falling and demand very low, the scenario is challenging for Coal India,” Zama told the Business Standard.

This is Rs 8,000 more than the amount granted last year (and Rs 8,500 more from the year before).

For the June quarter, Coal India had net profit of Rs 3,764 crore as compared to Rs 4,033 crore in the corresponding period last year.

source: http://www.business-standard.com