Coal India trade unions may soften stand on disinvestment

Trade union leaders meeting coal minister Sri Prakash Jaiswal on Tuesday

Coal India trade unions are likely to soften their stand on the proposed 10% disinvestment by the government in the Public Sector Undertaking (PSU).

The trade union representatives opposing any stake sale in the mining company would propose allowing stake purchase by other state-owned companies in Coal India or a share buyback by the company.

The union leaders are meeting with coal minister Sri Prakash Jaiswal on Tuesday. The unions fear loss of jobs because of disinvestment, but are willing to discuss “other” options.

“We will not use the word “strike” as of now. We will not agree for any private sector purchase of stake in CIL in the 23 July meeting but, if the government insists, we are prepared to discuss alternate options. Any other public sector company like Bharat Heavy Electricals (Bhel) can buy the stake,” S Q Zama, Secretary General of Congress-backed Indian National Mine Workers Federation (INMFW) told Business Standard.

Zama is part of the six-member committee set up to talk to the government on the issue. INTUC is one of the five trade unions representing over 90% of the 383,000 workforce of the world’s largest coal mining company. Other unions include Bharatiya Mazdoor Sangh (BMS), Hind Mazdoor Sabha and the left-backed All India Trade Union Congress (AITUC) and Centre for Indian Trade Unions (CITU). The unions are also going to press for cancelling all the 100-odd coal block allocations made to private companies which have not commenced production and giving the blocks to CIL.

CIL was listed on the bourses in 2010 through an Initial Public Offer (IPO) in which the government raised Rs 15,199 crore by selling 10% stake. The government currently holds 90% in the company and plans to divest another 10% to rope in around Rs 20,000 crore from the market in what would be the biggest share sale in the current financial year.

“At the time of the last share sale in 2010, we were assured by the government that no further disinvestment of CIL would be carried out. Therefore, a joint resolution was adopted to oppose the new stake sale in the 24 June meeting of the five unions in Kolkata,” Zama said. The union representatives met Jaiswal on 6 July who assured taking up the issue with the Prime Minister.

Coal India produces around 1.2 million tonne (MT) coal daily and loses output worth Rs 150 crore in a single day of strike. The opposition from worker unions comes at a time when the world’s largest coal miner is struggling to meet the current financial year’s production target of 482 MT, a 6.6% increase over the last fiscal’s output of 452 MT.