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MCL mining contractors to go on strike from October 1
BS Reporter / Kolkata/ Talcher Sep 26, 2009, 00:41 IST

MCL Mining Contractors’ Association has served an ultimatum to MCL (Mahanadi Coalfields Ltd) authorities to go on strike from October 1 unless its three main grievances are addressed by the end of the current month.

These contractors are engaged in key mining works like surface miner operation, over burden removal, coal transportation and wagon loading in the both Talcher and IB valley coalfields under MCL. The main demands include reimbursement of service tax levied upon the contractors after the tender, payment of escalated wages, payment of escalation charge of tyres, lubricants and spare parts of the vehicles engaged by them in various mining and transportation works.

The secretary of the association S.K.Satpathy accused the MCL authorities of harassment. “We have no option but to resort to casework amid continuing apathetic and exploitative policy by the MCL management”, he said.|

He said, since the service tax, which was not enshrined in the tender was levied by the government in 2002 during the pendency of the contract, the principal employer MCL should have borne the financial burden arising out of it. However, MCL has refused to do so despite the fact that other Coal India (CIL) subsidiaries have reimbursed the amount to their contractors. Even CIL board had approved the reimbursement, he added.

Similarly, he said, in case of escalation of wages of workers, price hike of diesel, lubricant, tyres and other required materials, MCL refused to pay the hike amount violating all norms.

He alleged that terms of the tender notices are one sided and framed to squeeze the contractors with penalties. He also criticized the “dual policy” of MCL in which it goes for outsourcing at one hand and on the other, purchases heavy machineries like surface miners for coal productions without proper utililisation of the equipments. Stating that abnormal delay in closure of contract has blocked huge amount of contractors’ funds, he termed tender conditions like price fall penalty, performance clause and security clause as unjustified.

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