Considerable Wage Gains Achieved by Indian Petrochemical Workers

Conflict was resolved at the Haldia Petrochemicals company in India last week, where a four day strike was ended by a new collective agreement, ensuring significant wage gains for CAL workers. The wage revision saw workers receive a 104 percent rise in the first year of the agreement, followed by 21 percent the second year and a further 20 percent the third year. There are 1,500 workers at the plant who will benefit from the new collective agreement.

Talks were brokered by the country’s Department of Labour, and discussions were held at the office of the Labour Commissioner. The top officials of the Haldia Petrochemical Ltd. management had previously refused to sign the Charter of Demand (COD) presented by leadership of the HPL Servicing and Maintenance Contractors Union (HSMCU), who are not ICEM affiliates. The union responded with indefinite strike action, on Saturday 21 November, which was ended after four days.

HSMCU General Secretary Debashish Maity stated that the lowest paid CAL worker at the plant received Rs. 3,000 per month (US$65), prior to agreement. The originally rejected COD sought to raise that figure to Rs 6,000 in year one, Rs 7,600 in year two, and Rs 8,500 in year three. The agreement reached following strike includes this wage structure. Similar percentage raises will apply to better paid workers at the factory, “…the average hike of the structure will be up from Rs 6,000 to Rs 11,000,” stated General Secretary Maity. Workers will also receive a monthly salary, as opposed to the daily wage they received prior. The wage gains apply for the last five months, and workers will receive those arrears immediately.

The company has been carrying out a second phase of expansion, named Project Supermax, which would increase the capacity of the naphtha cracking from 520 kilotonnes to 675 kilotonnes per year. The union action was well timed and the company could not afford to halt the expensive expansion process for strike.

The new collective agreement also changes the rules on workers receiving their salary payments on time, as salaries are paid to the employees via the contractor firms, workers had complained of severe delays. This will no longer be possible.

There are still considerable differences in the standard of working conditions for the outsourced workers and regular employees at the plant. The struggle will continue to end this discrepancy.