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Big Pay Rises For Indian Coal Workers After Strike Threat

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7 August, 2005ICEM News release No. 96/2000

More than 700,000 coal workers in India have won major improvements in pay and allowances.

Agreement came after their unions had served notice of a six-day nationwide strike, which had been scheduled to start this Monday.

The deal is between the Indian National Mineworkers’ Federation (INMF), three other unions and the management of the coal industry, led by the public sector Coal India Limited (CIL). At the global level, the INMF is affiliated to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).

Following the strike threat, India's Coal Ministry and the coal industry management invited the INMF and its allies for discussion. The Office of the chief Labour Commissioner of the Ministry of Labour also intervened and called both the parties for conciliation.

Negotiations led to a new Memorandum of Understanding, replacing a previous one whose interpretation and implementation had been disputed.

The new understanding provides for pay rises of between 15 and 33 percent. A wide range of allowances will also be increased. And all workers are guaranteed to receive four promotions during the standard 30-year period of service. Provident funds and life insurance have been improved, as have the ex-gratia payments by employers if a worker dies in a mine accident.

The memorandum has been ratified by the conciliation officer and the labour commissioner. On 23 December, it will be converted into a National Coal Wage Agreement when the Joint Bipartite Committee for the Coal Industry meets.

Coal workers all over India hailed the agreement and supported the decision of the INMF and its allies to withdraw the strike call.