NE BUSINESS BUREAU
CHENNAI, JAN 24
India Cements, a company with 75 years of legacy and one of the largest producers of cement in South India, on Monday announced it has signed a new wage settlement with trade unions under section (12(3)] of Industrial Disputes Act.
The agreement was signed on Friday – January 13, 2023 by N Srinivasan,Vice-Chairman & Managing Director, India Cements and the representatives of the trade unions affiliated to INTUC, LPF, CITU, MDMK and internal Unions in the Company’s plants, before P Arunkumar, Deputy Chief Labour Commissioner (Central), Chennai and D Srinivasulu, Deputy Chief Labour Commissioner (Central), Hyderabad.
- The agreement provides for revising the variable DA payable from Rs 2.55 per point in CPI (1960 series) to Rs 2.75 per point.
- India Cements’ wage pact with unions is perhaps the first time that the industry is seeing a company-specific agreement.
- Apart from the agreement, the Management has also announced a new Floater Mediclaim Policy to all the employees covered by the agreement for the annual insurance cover of Rs 3 Lakhs per employee
“The four year agreement effective from April 1 2022, provides for a total increase of Rs 5,000 per month for the workmen employed in all the 10 cement plants of the Company. The agreement will benefit over 500 workmen.
Further, the agreement provides for revising the variable DA payable from Rs.2.55 per point in CPI (1960 series) to Rs.2.75 per point. This is expected to fetch an additional Rs 5,000 per month per head at the end of the settlement period. This along with Rs 5,000 wage increase, an employee stands to get nearly Rs.10,000 increase at the end of the 4th year,” says a company statement.
Apart from the agreement, the Management has also announced a new Floater Mediclaim Policy to all the employees covered by the agreement for the annual insurance cover of Rs 3 Lakhs per employee. The premium amount will be paid by the Company. This will entail out go of Rs.1.65 crore per annum for the Company.
Commenting on the lead taken by India Cements in amicably reaching the agreement with the unions, N Srinivasan, Vice Chairman and Managing Director said, “For the last 30 years, I have been negotiating on behalf of the cement industry with all the central trade unions. As reaching a consensus is taking time this time, we have now entered into the 12 (3) settlement with our unions for the benefit of employees in all our Plants”.
Since 1992, Srinivasan has been spearheading the negotiations with the central unions on behalf of the cement industry and concluded seven settlements till 2018, the statement added.
