Neyveli begins talks with unions after employees go on strike

Previous talks failed to break the deadlock with the management sticking to its stand of offering 10% increase in salary while the unions are demanding 24% rise

Public sector company Neyveli Lignite Corporation today said it had started negotiations with the recognised workers' unions a day after its employees went on an indefinite strike to press their demand for wage revision.

"The management of the company has already commenced negotiations with the recognised unions and conciliation proceedings before the Regional Labour Commissioner is in process," Neyveli Lignite Corporation said in a BSE filing.

It further said: "Contingency plans are in place. Executives and supervisors of the company are maintaining the production and carrying out other supporting activities. Lignite production and power generation are being maintained. It is expected that normalcy would be restored soon."

The talks held on July 17 failed to break the deadlock with the management sticking to its stand of offering only 10 per cent increase in salary while the unions are demanding 24 per cent hike.

The strike began from 2200 hours on July 20.

Neyveli Lignite Corporation has termed wage hike demand "unreasonable".

Around 15,000 employees of Neyveli Lignite Corporation commenced an indefinite strike to press their demand for wage revision in Neyveli in Tamil Nadu. Strike has been called by 13 trade unions following failure of talks between them and the management over wage issue.

The decision to go on strike was taken at a meeting of the Joint Action Council of the trade unions including CITU, INTUC, AITUC and AIADMK union.

Wage revision in the public sector giant is implemented once every five years. However, the last revision was in 2007.