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Cement manufacturers in the country and their trade unions have concluded a new wage agreement for the period from April 1, 2018 to March 31, 2022.
The move comes at a time when the industry gears up for a growth phase in view of a stronger infrastructure development push by the Central government.
Cement Manufacturers’ Association (CMA) and Federation of major Central Trade Unions (INTUC, AITUC, BMS, HMS, and CITU & LPF) concluded the new wage pact.
The MoU was signed by CMA and the representatives of Central Trade Unions in Chennai on January 21. It will be converted into a Memorandum of Settlement before the Chief Labour Commissioner (Central), New Delhi, in due course.
The new agreement provides for an increase of ₹5,000 per month in the gross pay of cement employees (to be paid in two instalments of ₹2,500 each). It also provides for enhanced DA, service weightage and other benefits. Arrears for 10 months will be paid in two instalments.
“Talks concluded smoothly and in India, the cement sector is the only one that concludes wage pact through negotiations. We are satisfied with the new pact and it will help maintain industrial peace in the industry,” M Shanmugam, General Secretary, Labour Progressive Federation, told BusinessLine.
In all, 21 cement companies — including India Cements, Ultra Tech, Ramco Cements, Dalmia Cement, Chettinad Cement, Zuari Cement, JK Lakshmi Cement and Century Cement — that together make up 60 per cent of the country’s total cement capacity, negotiated under the CMA banner with the unions, according to a statement. N Srinivasan, Vice-Chairman and Managing Director of India Cements, led the talks and played a crucial role in concluding the new wage agreement amicably. He has helped in concluding seven out of eight wage settlements in the cement industry in the past 26 years.
“The cement industry had faced weak demand in the last seven years. It is left to face enormous cost pressure. At the same time, the industry has been a benevolent employer,” Srinivasan said in a statement, adding, “The national level industry-wide settlement since 1992 is unique as it is collective bargaining in its truest sense. This has assured industrial peace in the sector for the past 26 years.”
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