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Coal India's $5 billion annual wage bill set to rise amid rocky outlook

The state-owned company is expected to begin talks this month that could result in paychecks climbing 20% or more.

An increase in pay will put more strain on Coal India’s balance sheet. Employee salaries accounted for more than half of the company’s expenses in the nine months ended December.
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An increase in pay will put more strain on Coal India’s balance sheet. Employee salaries accounted for more than half of the company’s expenses in the nine months ended December. (Photo: Bloomberg)

Rajesh Kumar Singh | Bloomberg
Coal India Ltd., the world’s biggest miner of the fossil fuel, is about to enter negotiations with trade unions over potentially hefty pay hikes at a time when the global push for clean energy is putting the industry’s future into doubt.
 
The Indian coal giant is expected to begin talks this month that could result in paychecks climbing 20% or more, bloating its more than $5 billion annual wage bill. The Kolkata-based company revises salaries of non-executive staff every five years, and the next change is due starting in July.

Talks come at an exceptional time for the coal sector.