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State Indian Coal Company Settles Strike with Contract Workers

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1 November, 2010

A six-week strike by contract workers of Neyveli Lignite Corporation (NLC) in Tamil Nadu state, India, ended on 27 October, after intervention by state Chief Minister M. Karunanidhi. Some 13,000 contract workers, represented by six unaffiliated unions, began strike actions at the state-owned coal and electric generating company on 19 and 20 September after putting forward a ten-point charter of demands.

Included in that charter was a demand to make workers with ten years or more of service permanent workers of the company. Other demands included wage revisions, equal pay for equal work, regularization of services, and certain work terms.

The settlement came after the six unions requested mediation by both state officials and the Coal Ministry in New Delhi. Also crucial in settling the walkout was a threat by the 750 permanent workers of NLC that they would strike if an accord was not reached. On 22 October, permanent staff also did a day of fasting in support of the striking contract workers.

The agreement, reached late in the evening of 27 October, gave contract workers an additional monthly pay of 1,560 rupees (€26), plus 1,000 rupees (€16) on top of a minimum bonus. There was also an assurance that the contract workers would not be victimized by taking part in the strike.

The strike was marked by road blockades to power plants, and mass arrests. Two weeks into the strike, contract workers affiliated to two other unions – an affiliate of the Labour Progressive Front, connected to the Tamil Nadu ruling party Davida Munnetra Kazhagam, and the Union of Dalit Panthers – broke with the other unions and signed a five-year contract with NLC.