India: Cement unions secure nationwide wage increase

Following several rounds of negotiations, Indian cement trade union federations, including the BWI-affiliated Indian National Cement Workers' Federation (INCWF) and the All India Cement Employees' Federation (AICEF), signed a Memorandum of Understanding (MoU) with the Cement Manufacturers' Association (CMA) on 21 June, providing for a nationwide tripartite wage increase as well as increases in education, conveyance, periodical, and leave travel allowances. The increase is made up of INR 3,450 (effective 1 April 2022) and INR 2,300 (effective 1 April 2024), for a total of INR 5,750. The agreement also specifies an increase in variable dearness allowance and an increase in respective pay grades. Furthermore, arrears arising from this settlement for the period 1 April 2022-30 June 2023 must be paid by 31 July 2023. The memorandum, which covers the period from 1 April 2022 to 32 March 2026, was signed by all the parties and endorsed by the Central Chief Labour Commissioner of India's Ministry of Labour and Employment. The negotiations started after a September 2022 meeting at Chennai in theTamil Nadu State.


The agreement applies to all permanent workers of CMA member companies, including those working in the grinding units. All existing service conditions, benefits, and privileges stated in the prior settlement and not revised by the most recent MoU will remain in effect. The trade union federations included demands for contractual workers, but no agreement was reached, and negotiations for them will continue outside of the formal agreement and through the Chief Labour Commissioner.


INCWF General Secretary Deoraj Singh welcomed the agreement. “After six rounds of hectic negotiations, we are happy to achieve a satisfactory settlement even as we continue to push for our demands for contractual workers which remain pending. We, along with other cement federations and their constituent unions, will continue the fight, this time, for the cause of contract workers. We will take their case with the Chief Labour Commissioner, and are hopeful that we will secure for them some form of job permanency and security, including benefits.”