Coal India Ltd.

Following the signing of National Coal Wage Agreement, the Maharatna public sector coal mining giant, Coal India is witnessing 7% hike in wage cost this financial year (FY), which will increase its expenses under salary head by Rs 1,750 crore, as mentioned in some media reports. The hike in Dearness allowance (DA), which has been estimated at 10% during this year, after offsetting a 3% reduction in DA cost on account of a drop in employee number due to normal retirements, is solely the reason behind the 7% wage hike.

Coal India, as on January 31, 2012, finalized the wage agreement for its 3.63 lakh strong non-executive work force by giving a 25% increase on Gross wages as of 30 June 2011. The National Coal Wage Agreement (NCWA) was inked in New Delhi between the Central trade unions representing the coal workers and the Management of the coal sector behemoth, CIL, in the Joint Bi-partite Committee for Coal Industry (JBCCI) set up for the purpose.