India Cements, one of the largest producers of cement in south India, has signed a new wage settlement with trade unions, under which workmen at all 10 cement plants of the company will get a salary increase of Rs 5,000 per month. The four-year agreement, effective April 1, 2022, will benefit over 500 workmen, according to a statement by India Cements.
The agreement was signed on January 13 by N Srinivasan, vice-chairman & MD, India Cements, and representatives of trade unions affiliated to INTUC, LPF, CITU, MDMK and internal unions at the plants.
In addition, 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 another Rs 5,000 per month, per head at the end of the settlement period.
The management has also announced a new floater mediclaim policy for all employees covered by the agreement for the annual insurance cover of Rs 3 lakh per employee. The premium amount will be paid by the company, entailing an outgo of Rs1.65 crore per annum for it.
Srinivasan 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 entered into a settlement [under Section (12(3) of the Industrial Disputes Act] with our unions for the benefit of employees in all our plants.”
Hit by an increase in input material prices, India Cements reported a net loss of Rs 137.58 crore for the second quarter of FY23, against a net profit of Rs 21.97 crore in the corresponding quarter of last fiscal. Total income at Rs 1,258.52 crore was 5.4% higher than Rs 1,193.35 crore in the year-ago period.