NLCIL inks wage revision pact with trade unions


NLC India Limited a Navratna CPSE under the Ministry of Coal, Govt. of India has about 10,000 employees on the rolls under the Non-Executive category.

The revision of wages, allowances and incentive schemes benefiting the 10,000 employees was due since 01.01.2017. To revise the same, a Joint Negotiation Committee was formed comprising the representatives of the Management and the Trade Unions (CITU & LPF) based on guidelines receiving from DPE, Govt. of India. The Committee after holding several rounds of negotiations had arrived at a consensus and the same was finalised by the Senior Management team consisting of Functional Directors and CMD. Based on the agreement, a Memorandum of Understanding (MoU) for the revision of wages, allowances and incentive schemes has been inked today at Chennai between the Management of NLC India Limited and Trade Unions in the presence of the CMD and the Functional Directors of NLCIL and the Senior Central Leaders of the Trade Unions (CITU & LPF).This will be implemented after the approval of Board of directors of NLCIL

The salient features of the revision in the MoU include

  • Wage hike of 13.5% as fitment benefit with 35% of the running basic pay as common allowance applicable to all the employees covered under the settlement.
  • Validity of the revision is for 10 years from 01.01.2017 as against the previous validity period of 5 years.
  • Apart from the above, the employees will get enhanced Gratuity amounting to
    20 Lakhs and increase in other benefits linked to performance.

In respect of the revision of the incentive schemes, it has been agreed to introduce a single scheme called “Unified Incentive Scheme” as against the existing two different schemes with effect from 01.01.2017 onwards which will be valid for a period of 10 years. The Management had agreed to set aside an amount of 8% of the Profit before Tax (PBT) which will be ‘kitty’ for the incentive pay out.

The above pacts revising the wages, allowances and incentive scheme has several unique features as under.

  1. The settlement has been arrived at in a conducive atmosphere without the employees resorting to ‘strike’unlike in all previous occasions creating a new history in the annals of the Company’s Industrial Relation front.
  2. The revision is applicable for a period of 10 years as against the previous term of 5 years.
  3. The Management and Unions have agreed to ink the MoU as bipartite settlement within themselves, clearly exhibiting the mutual trust, as against the similar MoUs inked with the mediation of Central Labour Commissionerate authorities as ‘tripartite’

Rakesh Kumar, CMD, V.Thangapandian, Director (Power), R. Vikraman, Director (Human Resource), Nadella Naga Mahewara Rao, Director (Planning & Projects) and Prabhakar Chowki, Director (Mines) were present on the occasion.

The representatives of the unions and the Central Senior Leaders of the Unions have expressed their satisfaction and overwhelmingly appreciated the Management in bringing out an amicable settlement on the revision to the complete satisfaction of the workforce. They have assured their continued support to the management in all its endeavours and to elevate the status of the NLC India Limited to ‘Maharatna’.

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