The government has asked Coal India to focus on production enhancement, saying it cannot let the “profitability tumble” as the recent wage hike will have an estimated impact of nearly Rs 6,000 crore annually.
“They (Coal India) have to increase their production and productivity. That goes without saying. When they came to meet me after they signed this (wage pact) both the employee leaders and management were sitting. I told them that you have to do that,” Coal Secretary Susheel Kumar told .
Coal India (CIL) had in October signed a wage agreement with workers’ unions proposing 20 per cent hike in salaries for a period of five years, which will have an estimated impact of Rs 5,667 crore per year to the world’s largest coal miner.
“Because if there is Rs 5,000-Rs 6,000 crore of outgo that has to be generated. We cannot let the stock prices tumble. We cannot let the profitability tumble. So, they (CIL) have to work for productivity and production enhancement,” Kumar said.
The public sector firm had signed the agreement at 20 per cent hike in salaries against workers’ demand for a 50 per cent raise. Read More…