In a Diwali bonanza to its employees, Coal India finalised the Tenth Wage Agreement of Coal Workers on Tuesday.
An official statement said, trade union representatives were insisting on a 50 per cent wage increase for the employees. But, considering CIL’s financial position it has been agreed for a 20 per cent increase in wages.
The statement said: “To implement the agreement in totality, the payment of arrears will be made in three stages — 40 per cent, 30 per cent, and 30 per cent. For the welfare of workers an amount of ₹40,000 will be paid to the employees before Diwali as a one-time advance.”
The wage agreement was due from July 1, 2016. The negotiation for wage agreement that has been on for more than one year, concluded on Tuesday, the statement added.
Under the agreement, CIL and its employees will also contribute 7 per cent towards a pension fund. This has been enabled for the first time, according to the statement.
To implement the scheme of medical treatment to the retired employees, CIL will contribute an amount of ₹18,000 per employee towards contributory post retirement medical scheme, apart from ₹40,000 by each employee contributed towards the said scheme. This fund will be operated through a Trust.
After the agreement, each employee shall also get a day’s rest every week.