It is time to cheer up for nearly 365,000 non-executive employees of world’s largest coal producer Coal India (CIL). The company’s management and workers’ union have agreed on 25 per cent increase in gross salaries including several other benefits.

The wage hike would cost the miner about Rs 6,500 crore every year, said Coal India chairman Nirmal Chandra Jha, who retired on Tuesday.

When asked if Coal India would revise prices after the increase in wages, Jha said, they are yet to decide on this. “We have made a profit after tax of Rs 10,867.35 crore last financial year. If we can absorb this increase without incurring any loss, we may not raise prices. But, shareholders also have aspirations for higher profits,” Jha added.

The new wages will be effective July 2011. Earlier in 2006, it was revised by 24 per cent.

In addition to rise in gross salaries, Coal India non-executive employees will get an additional bonus of four per cent on basic salary. The workers’ union has also demanded for rise in pension benefits. A committee has been formed comprising members from both management and union to discuss and find out ways to increase pension fund.

There are also demands from workers for medical help for retired persons. The company has agreed for a health insurance scheme in addition to free treatment at Coal India run hospitals. The workers would also be entitled to a house rent allowance amounting to two per cent of basic salary.

In a related development, additional secretary in coal ministry Zohra Chatterji will take additional charge of chairman Coal India on Wednesday. The state-run company has remained headless after Partha S Bhattacharya retired as chairman on February 28, 2011.

Since then Jha, who is director (technical), was handling additional charge of chairman till he retires on Tuesday.

siddharthasaikia@mydigitalfc.com