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13,000 Contract Workers End Strike Against India’s Neyveli Lignite Corporation

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7 April, 2008

Some 13,000 contract workers of several Indian trade unions ended an eight-day strike Saturday, 5 April, against state-run Neyveli Lignite Corporation, a mining and electric generating company in southern Tamil Nadu state that supplies power to four neighbouring states.

The contract workers, employed for as long as 12 years at the company’s three mines and three power stations, are seeking permanent work status and payment of bonuses. Reportedly, the company had filed a petition with India’s Supreme Court to vacate a recent Madras Hugh Court ruling calling on Neyveli to make all contract workers full-time employees.

Contract workers were also seeking housing provisions, and medical and transport allowances. The strike, which began on 29 March, was highlighted by mass demonstrations in front of two of the power plants. At one, Thermal Power Station No. 2, all 2,000 demonstrators were arrested by police.

The end of the strike indicates that contract workers obtained their demand for regularisation. A spokesperson for Neyveli Lignite, founded in 1956, which went public in 1986, said during the strike that 4,000 contract workers had been absorbed into the company, and that an 8.33% had been awarded. The company mined 22 million tonnes of lignite in 2007, and saw a 10.57% increase in power generation.