People's Democracy

  Successful Coal Agreement Achieved Through Struggle 

M K Pandhe

AFTER a long drawn struggle by joint movement of coal workers, the government of India was forced to accept most of the major economic demands of the six lakh coal workers.

All the five federations of coal workers affiliated to CITU, INTUC, AITUC, HMS and BMS planned to go in for a week long strike from July 18 to 24 in protest against the inordinate delay in settling the wage agreement.

It is reliably learnt that the secretary, department of coal, government of India proposed dissolution of the Joint Bipartite Committee for Coal Industry (JBCCI) and tackle the strike situation in coal industry by resorting to application of ESMA. The coal minister, Dr Dasari Narayan Rao, however, felt that it would lead to aggravation of situation and serious disturbance in coal supply since after third day of the strike, the thermal power plants in the country would start coming to a grinding halt. The ministry of coal’s idea to handle the situation through import of coal could not be considered in view of the high cost of imported coal in the international market. The Port & Dock workers agreed to refuse unloading of imported coal if the government decides to do so to break the strike of coal workers.

It is in this background, the government of India was compelled to call the unions for final negotiation. On July 9, 2005, the core group of the workers leadership held talks with the management at the residence of the minister of state for coal and the talks continued throughout the night. The management had to accept all the points raised by the trade unions and the talks were concluded. On July 14, 2005, the drafting committee finalised the draft and the agreement was signed by JBCCI on July 15 in the presence of minister of state for coal.  The total payment, including the arrears, consequent upon the agreement works out to be Rs 7500 crore.

The National Coal Wage Agreement, the NCWA-VII, which is made effective from July 1, 2001 has become a pace setter and guide for the entire public sector workers’ movement. It could fetch highest level of minimum wages. It is the only wage agreement which has defeated the DPE directive and achieved full neutralisation DA despite having a five year tenure. And this could be achieved owing to the remarkable spirit and the readiness to fight unitedly, demonstrated magnificently by the six lakh coal workers. The same spirit was also reflected in the fight against privatisation move of the coal mines during the past years. The entire public sector trade union movement must draw a lesson from the coal workers achievement.    

NATIONAWIDE PREPARATION

Moreover, the strike was to take place on the eve of the monsoon session of parliament and the UPA government must have felt concerned that the coal workers strike would add to its difficulty and bring embarrassment. Hence the prime minister, who is also in charge of the coal portfolio, directed the ministry of coal to settle the issues and avert the strike prior to his departure to US on July 16.

The massive campaign and preparatory movements for long-drawn strike action throughout the coal industry at various stages of negotiations and spontaneous participation of the mass of coal workers in such campaign could create a charged atmosphere all over. From the grassroots level, demand was being raised by the workers to prepare for an indefinite strike, if the government does not accept the just demands of the workers.

The National Coal Wage Agreement-VI completed its tenure on June 30, 2001 and the new wage agreement was supposed to come into effect from July 1, 2001. During the entire period till date, the united coal workers’ movement had to give call and prepare for multiple-days’ strike action a number of times to make the government and the management move on the issue of wage revision of the coal workers.

The NDA government delayed the constitution of JBCCI for over two years. And it was again owing to a strike threat by the united movement of the coal workers, the NDA government had to announce the constitution of the JBCCI. It also had to agree to grant interim relief of 15 per cent of basic pay in early 2004 with effect from January 1, 2004, again in the face of strike notice served by the coal unions.

Even after the UPA government came to power, the coal management continued with their dilatory and negative tactics in finalising the wage agreement. In September 2004, coal workers had to give a call for another nationwide strike. The government of India and the Coal India management had to commence negotiation on the eve of strike and had to agree to raise the Minimum Basic Wage of the coal workers from existing Rs 3300 to Rs 5500 and the rate of annual increment to 2.5-3 per cent of basic pay at the commencement of each grade. This resulted in increase in the rate of increment from Rs 28 to Rs 139 at the minimum level and Rs 200 to Rs 300 at the maximum level. The government had to agree that the settlement would be applicable to all coal workers including those working in ECL and BCCL. The government was earlier refusing to grant the benefit of wage agreement to ECL and BCCL on the ground that these companies had been referred to BIFR and revival package submitted by these companies provided that the NCWA-VII, i.e., the new wage agreement would not be applicable to the workers of these two companies. In September 2004, the government had to agree ultimately that these revival packages would be modified to provide payment of higher and revised wages to the workers of these two companies as decided by the National Coal Wage Agreement.

STRUGGLE FOR FULL NEUTRALISATION

The previous coal wage agreement provided that the workers drawing basic wage above Rs 6500 would receive only 75 per cent dearness allowance, thereby depriving the major chunk of the coal workers from the benefit of full neutralisation. The CITU had been consistently opposing this and made clear that it would not sign the new wage agreement unless full neutralisation DA is provided for. Ultimately due to pressure from the ranks, all the trade unions had to raise this demand and the united movement pressed for the same.

The government of India appointed a team of ‘Group of Ministers’ under the chairmanship of Pranab Mukherjee to discuss  disputed issues during the wage negotiations. The trade unions jointly told the GoM that no agreement is possible unless the government accepted grant of full neutralisation-DA to all the coal workers for five-year wage settlement.

The Department of Public Enterprises (DPE) of government of India had issued a directive to all the public sector undertakings that 100 per cent neutralisation DA above the wage level of Rs 6500 would be allowed only in those industries which go for 10 years’ wage agreement. But confronted with the situation of long-drawn nationwide strike by the coal workers, the central government had to throw overboard the directive of DPE and accept full neutralisation-DA even for a five-year wage settlement for the coal workers.

As a result, coal industry becomes the only industry which could achieve full neutralisation DA even for a five-year wage settlement completely defeating the restrictive anti-worker directive of the government of India and DPE. This is going to have repercussions on the forthcoming public sector wage negotiations since the trade unions can very well press for a five-year wage settlement in all the PSUs.   

SUBSTANTIAL BENEFITS

The coal workers receive 10 per cent quarterly bonus which is also treated as basic wage.  Hence it will lead to increase in various fringe-benefits calculated on basic wage including the provident fund which, works out to be Rs 99.62. This is added to the minimum wage.  Therefore, the minimum wage of the coal workers as on July 1, 2001 would be Rs 6204.62. In view of this, the daily rated workers would get a minimum wage of Rs 238.63 per day in the coal industry.

All workers would receive a guaranteed benefit of 15 per cent of basic pay as on 30-06-2001 plus Rs 300 or Rs 1185.39, whichever is higher.

There has been substantial improvement in underground allowance. Workers drawing basic wage up to Rs 9000 would get 10 per cent of the basic as underground allowance. Those drawing above Rs 9000 would get 12.5 per cent. At the minimum wage level the rise in UG allowance is from Rs 300 to Rs 555 per month.

All the allowances have been increased. Washing allowance from Rs 50 to Rs 60; transport subsidy from Rs 5 to Rs 7 per day; additional transport subsidy from Rs 7 to Rs 10; conveyance reimbursement from Rs 10 to Rs 15 per day. Other allowances have also been increased.

Workers drawing a salary above Rs 5850 will be entitled for first class rail travel while availing Leave Travel Concessions (LTC/LLTC). The workers who have not been provided standard quarters will receive Rs 100 per month as HRA while no rent will be charged for the standard house provided to the workers. In case of urban residence, the existing provision of payment of HRA will continue. The workers will receive 30 units of electricity without any charge. They will also be supplied free coal or reimbursement of cost of 14.5 kg of LPG.

Under Life Cover Scheme, workers will receive Rs 40,000 over and above gratuity. They will also be paid Rs 30,000 over and above the amount available under Workmen’s Compensation Act in case of permanent and total disablement.

Regarding employment of dependent, the existing provision will continue till a new scheme is jointly framed by the management and the trade unions. The pernicious system of deploying trainees with meagre stipend despite deploying them in regular production jobs will be discontinued and they will be paid category-1 wages.

The management tried to obstruct the settlement by raising issues which could not be accepted by the workers. They wanted to link quarterly bonus with attendance. Further, they pressed for introduction of seven days’ working with staggered weekly off at normal wages by abolishing the provision of overtime wages. The trade unions resolutely opposed these proposals and ultimately due to the pressure of direct action by coal miners, the management was compelled to withdraw these preconditions.

NEED FOR A NATIONAL COAL POLICY

The CITU representatives in the joint forum, besides dealing on the demands of workers, also insisted the minister of coal to make serious effort for assigning the coal sector the status of infrastructure industry, which will help make the industry advance steadily.

The CITU also pointed out that JBCCI is a bipartite forum and its constitution should not be left to the government. JBCCI should continue to operate without interference of the government.

Regarding improvement of production and productivity, the CITU proposed that the present practice of outsourcing should be stopped and workers will fully cooperate to increase production of coal required for the country. The CITU pointed out that out of 325 million tonnes of coal production, 175 million tonnes is produced through outsourcing and such largescale outsourcing has also led to huge wastage and theft of precious natural resources besides dampening potential of productivity in the entire coal sector. The CITU, therefore suggested that the Special Committee on Production should be activised which should periodically monitor the performance of the whole industry and suggest measures for improvement. The CITU demanded that the Bill to privatise coal mines should not be brought before parliament for consideration and that it should be abandoned altogether.

The CITU also insisted that the settlement signed in JBCCI on coal workers’ wage should be made applicable to entire industry, including in the private sector. The private sector and the mafias engaged in mining are exploiting the workers by  paying only Rs 30-40  per day to them. This must be stopped and common wage rates as decided by the JBCCI should be made applicable to the entire industry by official order and the government must immediately act in that direction.

The rampant corruption, theft of coal, illegal mining, all going on with the active indulgence of a section of officials in the industry and local administration, are resulting in loss of thousands of crores of rupees to coal industry besides dampening efficiency and productivity. This is further compounded by policy of victimisation, favouritism, unfair labour practices etc indulged by a section of management. All these must be brought to an end. Along with this, safety standards need to be substantially improved and monitoring agency has to be strengthened. Production management at the mine-level is also required to be substantially revamped to ensure availability of appropriate skilled manpower, equipment, safety arrangements etc.

If these steps are taken and workers representatives are involved appropriately in the process, productivity will definitely increase in a big way as workers are always ready to cooperate in augmenting the production to meet the requirement of the country, including that of the energy sector. And only the public sector coal industry can effectively meet the national requirement and priorities. The public sector coal workers are determined to defend the public sector coal industry at all costs, asserted the CITU in the joint forum.

The CITU congratulated the coal workers for the remarkable achievement which has been possible owing to the unity and determination to fight, demonstrated magnificently by the six lakh coal workers through out the country.