NEW DELHI, 1 FEB: State-run Coal India Limited has signed a pact with its trade unions to increase wages by 25 per cent, which would put an additional burden of Rs 6,500 crore on the public sector unit. The hike will benefit over 3.7 lakh workers of the world's largest coal producer.

“An agreement was signed between union representatives and CIL management late last night for increase in the wages under which minimum guaranteed benefit would be 25 per cent of gross as on 30 June 2011,” a CIL official said.

Mr NC Jha, whose term as CIL chairman ended on 31 January, had said yesterday that the agreement would roughly cost the company Rs 6,500 crore extra and is likely to be absorbed either by enhancing output or by having a revisit on the pricing structure.

At present, CIL and its subsidiaries spend about Rs 20,000 crore annually on salaries of workers which is roughly over 40 per cent of the cost of production. pti

source:the statesman