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27 July, 2009
ICEM affiliate the Indian National Mineworkers’ Federation (INMF) led a joint protest of all coal worker unions in India, against the proposal of the Indian Government to disinvest shares of Coal India Ltd., a state owned body. All coal mines in the country were nationalised by former President Indira Gandhi, because of malpractice throughout the industry, and the inadequate rate of progress in the development of the industry. The unions jointly submitted a strong statement condemning the decision to amend the Coal Mines Nationalisation Act and calling on the government to desist.
The statement is signed by INMF President, Shri Rajendra Prasad Singh and INMF Secretary General, Shri S.Q. Zama, along with the leaders of the other coal mining unions of India. The statement argues that Coal India is competent as is, and a more effective way of improving its operations would be for the government to provide adequate facilities, and also for the coal industry to be given “infrastructure status”. All the trade unions in the Indian coal industry pledge, in the statement, to work together to faster develop the industry and achieve the goal of producing enough coal to satisfy domestic need, and avoid importing it.
Coal India Ltd. made a profit in 2008 of US$1.8 billion. Raw coal production during 2008-09 went up by 7.90 per cent to 493.20 million tonnes. Coal India Ltd. is one of 40 publically owned companies targeted for privatisation in India.
The Board of Coal India Ltd. has recommended that 5 to 10 per cent government equity can be disinvested. Coal Minister Sriprakash Jaiswal accepts the recommendation and will now approach Prime Minister Manmohan Singh. Jaiswal plans for the shares to be offered first to employees, secondly to those whose land was transferred to CIL, and then remaining shares will be open to all buyers.
The unions oppose the allocation of virgin coal blocks to private companies, as well as the transfer of areas currently controlled by Coal India Ltd. (CIL). The statement points to the private sector’s record of exploitation of mineworkers, and the extremely low wages paid by private companies currently operating in the industry. “We demand that all the blocks should be handed over to Coal India for further production of coal.”
Further demands made in the joint statement are for an industry-wide wage to be enforced by the National Coal Wage Board, and for the prevention of outsourcing coal industry jobs to private agencies. “We demand that the contract workers should not be allowed to be engaged in permanent and perennial nature of jobs and in other coal sectors they should be paid minimum of the scale in coal industry.”
The ICEM supports the campaign to oppose disinvestments and privatisation of the Coal Industry in India.