Coal India gains after workers' Union call for work to rule

Coal India rose 0.98% to Rs 379 at 14:25 IST on BSE after the company said that a joint notice is served by five CTUs enclosing charter of demands for resorting to "work to rule" with effect from 18 to 20 September 2014.

The announcement was made during market hours today, 4 September 2014.

Meanwhile, the BSE Sensex was down 135.89 points or 0.5% at 27,005.25.

On BSE, so far 3.23 lakh shares were traded in the counter, compared with an average volume of 4.12 lakh shares in the past one quarter.

The stock hit a high of Rs 381.50 and a low of Rs 371.50 so far during the day. The stock hit a record high of Rs 423.85 on 11 June 2014. The stock hit a 52-week low of Rs 240.50 on 26 February 2014.

The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

The work for rule will be carried out in all the mines/establishments of the company. The joint notice dated 31 August 2014 from Secretary General, Indian National Mineworkers Federation (INTUC) was addressed to Secretary, Ministry of Coal, Government of India with a copy to Chairman, Coal India. Charter of Demand was jointly signed by five Centre of Indian Trade Unions (CITUs), namely, INTUC, BMS, HMS. AITUC & CITU. Efforts are being made to reconcile the issue, CIL said in a statement.

Among other demands, five CTUs had been consistently demanding to stop/retrieve back coal blocks allotted for captive use to private parties. It demanded to return back the coal blocks to CIL as the nodal agency for exploration, mining and marketing. Recently, Supreme Court declared allocation of coal blocks to the companies since 1993 as illegal.

Work-to-rule is an industrial action in which employees do no more than the minimum required by the rules of their contract, and precisely follow safety or other regulations in order to cause a slowdown, rather than to serve their purposes.

Coal India's consolidated net profit rose 8.1% to Rs 4033.28 crore on 7% rise in total income to Rs 1995.83 crore in Q1 June 2014 over Q1 June 2013.

Coal India is the largest coal producer in the world.

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