After auto, labour unrest to hit steel

After auto workers in Manesar and Gurgaon, it is the turn of the workers of public sector steel manufacturers Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL) to strike work demanding a wage revision.

Around 20,000 CITU members belonging to the two PSUs are expected to go on strike on October 30 and November 4. Among other things, the union is demanding that non-executive employees be paid on a par with the executive employees; that there be a wage revision every five years instead of 10 at present; and that the pay of contract workers be increased.

“Yes, we have given a notice to strike next week. Close to 20,000 workers are expected to strike,” Tapan Sen, national secretary, CITU, said. Negotiations are on, but the management has not accepted the demands, he said.  Turn to Page 22

However, there appears to be a rift between two trade unions, INTUC and CITU, on this agitation.

“We are opposing this strike and will not be a part of this agitation of CITU,” Sanjeeva Reddy, president, INTUC said.

Reddy said they have been talking to the management and the latter has been receptive to the workers’ demands. “Some demands have been met, but CITU is asking for more. We are happy with the negotiations.”

According to Reddy, the management has agreed to a 68.8% increase in dearness allowance as demanded by INTUC. However, CITU is demanding a 78.2% increase.
A SAIL spokesperson confirmed the agitation but denied the workers were going on strike. “It’s a Bandh for one day, certainly not a strike. It is their way of putting forward their demands. The work and production will go on as usual,” he said.

Sen, however, said, “It’s a strike and we have given a formal notice also. You can call it different names. Certainly, there will be production loss.”

An RINL official told DNA Money the two companies met the striking leaders in New Delhi on Thursday, but the meeting bore no result.

The strike, if not averted, will have an adverse impact on both. The RINL official said his company will lose close to Rs 50 crore a day in case of a strike.

PK Bishnoi, chairman and managing director, RINL, said, “Any delay due to strike will escalate the cost and delay further the commissioning of the expansion units. This will be detrimental to the financial health of VSP, which needs to generate huge ‘investable funds’ for further expansion as well.”

“If the strike does happen, we have the mechanism in place to carry on the production for a day or two,” Bishnoi said, adding, talks were on with the union to avoid the strike.
SAIL currently has a capacity to produce 14.6 million tonne per annum (mtpa) of steel and is under a Rs 54,000 crore, 26 mtpa expansion, expected to be completed in 2011. The government is planning to sell 10% stake in SAIL as part of its divestment strategy. The money raised will be routed to SAIL’s expansion.

RINL, on the other hand, has a capacity of 3.6 mtpa of steel. The steelmaker is expanding capacity to 6.3 mtpa at a cost of Rs 12,000 crore.

With contribution from KV Ramana in Hyderabad