Coal news and updates

Coal strike ends on MoC pledge to consider union demands

January 8: The five-day strike in the coal sector ended late on January 7 (the second day) as India’s coal and power minister Piyush Goyal assured that a committee will be formed to look into the trade unions’ concerns.

The committee, to be headed by a joint-secretary of the government, will include representatives from Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL), and each of the five trade unions that had called the strike, Goyal said after a six-hour meeting with union leaders that ended around 10 pm.

A statement issued by the coal ministry on January 8 on the proceedings of the meeting said, the unions have pledged to compensate for the production lost due to the strike, while CIL’s new chairman and managing director Sutirtha Bhattacharya has assured not to penalise workers for their participation in the strike.

It further explained that the purpose of the Coal Mines (Special Provisions) Ordinance, which was the primary area of concern for the unions, is not to privatise Coal India, but to help the coal sector increase production and this to reduce imports. "A rumour is being spread that Coal India will be privatised. But the minister has made it clear that there is nothing in the Ordinance that will lead to such a move," the statement added.

Subsequent to the meeting, the unions withdrew the strike ending the stalemate in coal production and supply across the country. This came as a major relief for the power sector which feared of severe supply shortage. On the second day of the strike, Coal India Ltd (CIL) reportedly shipped only 0.645 million tons (mt) which is half its daily target.
However, a source in CITU-backed All India Coal Workers’ Federation (AICWF) said that the strike, while extracting some assurances about protecting coal workers’ interests, has not exactly achieved its objectives.

“Neither the government has promised to withdraw its disinvestment programme for CIL, nor promised to withdraw the ordinance,” a senior leader of the union told ICMW. “So, in strict sense, although the strike has been called off, AICWF’s opposition to the government’s stand will continue.”

Around 6-8 lakh coal workers including contract workers had taken part in the strike which was said to be the biggest industrial action in many years. Average loss of production amounted to around 1.5 mt per day.