According to the first proposal, Coal India, will now be allowed to regularise the 2007 Pay Revision with effect from January 1, 2007 in the loss-making subsidiaries, a press statement from the government said.
Union Cabinet on Wednesday approved a proposal to allow Coal India Ltd.’s loss-making subsidiaries to adopt revise the pay for their employees and payment of performance-related pay to executives and supervisors who are not part of any employee unions.
The move is to ensure “ equity among executives who are transferable, across the subsidiaries companies, and would also help in keeping up the morale of executives working in loss making” public sector enterprises and Central Mine Planning & Design Institute, a press statement from the government said.
According to the first proposal, Coal India, will now be allowed to regularise the 2007 Pay Revision with effect from January 1, 2007 in the loss-making subsidiaries, a press statement from the government said. “This is being allowed as a special dispensation” to Coal India, it said. “However, this special dispensation to CIL will not be cited as a precedent by other loss making Central Public Sector Enterprises (CPSEs).”
The Cabinet, also approved a proposal for payment of performance-related-pay to executives and other supervisors at Coal India who do not belong to any employee unions.
“The payment would be out of the corpus created by pooling the profits of CIL (Coal India Ltd) subsidiary companies, duly setting off the losses of the loss making subsidiaries and stand-alone profits of CIL, excluding dividends received from its subsidiary companies,” it said. “This will be with the condition that the corpus for payment of PRP should be treated as a yearly corpus with no provision for carrying it forward to subsequent years.
In a related but separate development, the Cabinet also approved a productivity-linked-reward for Port and Dock Employees from the year FY15 to FY16. The payment of the reward would be mad after adjusting the ad-hoc amount already paid during the last financial year, the government said. It added the expenses for payment of the reward shall be met by the major port trusts and dock labour boards themselves from their own resources and without any budgetary support from the government. The move is expected to benefit 44,000 employees.
Performance-related pay for Coal India and Port and Dock staff comes a week after the week after the Cabinet approved a proposal for production-linked pay for Indian Railways employees.