Tussle over $5 billion in wages is new risk to India’s coal supply

A key trade union at Coal India has warned that workers may strike over delays in finalising salary increases, a move that would risk complicating efforts to meet soaring fuel demand.

Talks held on July 1 failed to reach any agreement over a pay deal, said Sudhir Ghurde, who represented Akhil Bharatiya Khadan Mazdoor Sangh, one of the leading unions, at the meeting.

Workers are seeking a 47 per cent increase in wages — having earlier demanded a 50 per cent hike — while Coal India has offered a 3 per cent raise. A group of unions has written to Union Coal Minister Pralhad Joshi and urged him to intervene to help the sides conclude negotiations. The coal ministry and Coal India didn’t immediately respond to emailed requests for comment.