Government rejects Coal India execs’ demand for pay parity

KOLKATA:The government has rejected the demand of 20,000 Coal India executives that the company’s pay scale should be the same as that of some other state firms such as Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL). The government has said that current salaries are in line with guidelines of the department of public enterprises (DPE).
It has also asked Coal India to ensure that salaries of workmen do not exceed that of executives. Many senior workers are getting paid more than some executives because the company revises the salaries of workmen more frequently.

The Centre has told Coal India the salary demand has been rejected after consultation with the DPE, which prescribes pay scales for executives on the basis of recommendations of the Committee of Secretaries on the report of the 3rd Pay Revision Committee, which has been notified after Cabinet approval.

“Hence, Coal India’s proposal being not in line with extant department of public enterprise guidelines on pay revision does not allow any deviation in the number and structure of pay scales,” the Centre said in a letter to Coal India.

Last December, Coal India hiked executive salaries, which resulted in an additional Rs 800 crore outgo every year. This raised the pay scale for entry-level executives from Rs 16,400 - Rs 40,500 to Rs 40,000 – Rs 1,40,000 per month. The dearness allowance of 117% was merged with the basic salary after the hike.

The DPE told Coal India’s management that they can negotiate wages with unions and executives within the norms laid out by the department; they have also called for corrective action to remove any deviation from wage guidelines.