Coal India surges 5% on wage hike

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Coal India surges 5% on wage hike
Coal India: Quotes, News
BSE 253.90BSE Quote0.3 (0.12%)
NSE 253.80NSE Quote0.25 (0.10%)
Coal India, single largest coal producer in the world, shares surged by more than 5% on Friday after the management agreed to a wage hike which is lower than analysts' anticipations.

Coal India has agreed for 25% hike for all its non executive employes. The final agreement is expected to be signed in January last week.

Coal India shares on BSE opened at Rs 327.70. At 1.05 pm IST, shares were seen trading at Rs 344.05 up by 18.55 points or 5.70%.

The basis salary of Coal India workers is Rs 8,320 per month, but All India Trade Union Congress (AITUC) had asked to increase it to Rs 16,000 per month.

However, Coal India management has succeeded to settle the matter with much lower salary composition.

Coal India's wage bill increased by 25% is an additional burden on the company of about Rs 4,000 crore per year, the agreement is for five years with effect from July 2011.

About Coal India
Coal India Limited (CIL) as an organized state owned coal mining corporate that came into being in November 1975. It produces around 81.1% of India's overall coal production. It commands over 74% of the Indian Coal Market. Produces over 400 Million Tonnes of Coal annually. Coal production ending Financial Year 2011 was 431.32 Million Tonnes (MTs).

Read more about: coal india, shares, coal mining
Story first published: Friday, January 13, 2012, 13:03 [IST]
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