Workers at Coal India Ltd. will defer a proposed three-day strike after a court ruled the top global producer should implement planned pay increases.
A previous court decision to support a legal challenge by a group of executives to proposed hikes in salaries for other workers, including staff in operational roles, was overturned October 10 by a two-judge bench at Madhya Pradesh High Court.
“Our immediate demand was resumption of salaries to the workers and the court order has enabled those payments,” A.K. Jha, national secretary at Indian National Trade Union Congress, said by phone. As a result, “all the leading unions have collectively decided to call off the strike.”
Strikes had threatened to disrupt the supply of the fuel that accounts for almost 70% of India’s electricity generation as utilities seek to boost stockpiles following a scorching summer that pushed power demand to a record high.
State-run Coal India confirmed the planned strike would not go ahead.
The company paid out 407 billion rupees ($4.9 billion) in salaries in the 12 months ended March 2022 and reached an agreement with unions in January to raise base pay for its non-executive staff by 19%.
Officials have previously said the supplier would need to raise coal prices to cover the cost of pay hikes and other cost increases.