Charter of Demand for NCWA





To                                                                                                                           Date: 01-10-2011

            The Chairman

            Steel Authority of India Ltd

            Lodhi Road

            New Delhi-110003

Subject: Charter of Demands

Dear Sir,

            The terms of wage agreement dated 29th April 2010 in respect of the employees of SAIL & RINL will expire on dated 31-12-2011, after completion of the five years period effective from dated 01.01.2007. The terms of new settlement would be effective from dated 01.01.2012. In order to avoid delay in implementation the Steel, Metal & Engineering workers’ Federation of India (HMS) is placing the following demands and urge upon the management of SAIL to complete negotiation as early as possible so as to its employees to receive the benefits right from dated 01.01.2012.

                                                                                                          With kind regards

                                                                                                         Sincerely yours

                                                                                                        (Rajendro Prasad Singha)

National Vice President

Hind Mazdoor Sabha &

Steel, Metal & Engineering Workers’ Federation of India

Telefax: 0671 2506266

Mobile: 09437152224



Wages Allowance & Benefits 

1.         Wages

The wages of employees primarily should consist of Basic Wages, Dearness Allowance.

(a)        Minimum Wages

The revised minimum wage for the lowest paid employees (S-I) as on 01.01.2012 should be as under

        Basic Pay                                                  –    Rs.8,630/-

(+)   MGB (50% on Basic Pay)                        –    Rs.4,315/- (Rounded up to Rs.12,950/-)

            (+)   03 Spl. Increments @ 3%                         –    Rs.1,210/- = Rs.14,160/- (Minimum Basic)

            (+)   DA as on 01.01.12 anticipating @ 50%    –    Rs.7,080/- =  Rs.21,240/- (Minimum wages)

            (This minimum wages should be Rs.21.240/- linked to AICPI 126.33 (Base 2001 = 100)

(b)        Wage Structure

The revised Wage Structure effective from 1st January 2012 for different category of employees as under 




S – 1

14,160 - 3% - 25,690/-


S – 2

14,590 - 3% - 26,470/-


S – 3

15,030 - 3% - 27,270/-


S – 4

15,490 - 3% - 28,090/-


S – 5

15,960 - 3% - 28,940/-


S – 6

16,940 – 3% - 33,570/-


S – 7

17,980 – 3% - 35,620/-


S – 8

19,080 – 3% - 37,800/-


S – 9

20,860 – 3% - 41,320/-


S – 10

28,090 – 3% - 55,580/-


S – 11

31,640 – 3% - 62,570/-


S – 12

34,580 – 3% - 68,390/-



2.         Dearness Allowance

(a)        Dearness Allowance (D.A.) to the employees in the revised scales of pay at A.I.C.P.I.  126.33 as on 01.01.2007 (Base 2001 = 100) should be Rs. X/-  (which would stand as on 01.01.2012). Further increase in D.A. should be governed as per the following proposal.

(b)        D.A. should be revised every quarter on 1st April, 1st July, 1st October & 1st January of the year based on the increase in quarterly average on AICPI for the quarter December-February, March-May, June-August and September-November respectively over AICPI 126.33 as on 01.01.2007 (Base 2001 = 100).

(c)        In case there is decrease in AICPI, the rate of D.A. already received should continue till it is revised upwardly.

(d)        The percentage increase in quarterly average of AICPI for the above quarter should be taken into account up to one decimal point.

(e)        For computing the quantum of D.A. payable on the above basis, the fraction of a paisa if any should be rounded up to next rupee.           

3.         Minimum Guaranteed Benefit

(a)        The employees under this Agreement who are on the roll as on 31.12.2011 and continued should he entitled to a guaranteed benefit @ 50% of Basic as on 31.12.2011 + D.A. stands as on 01-01-2012.

(b)        Fitment in the revised Pay Scale

The wage of an employee on the rolls of the company as on 31.12.2011 should be fixed as per the following formula

(a)        Basic pay in the pre-revised scale of pay as on 31.12.2011


(b)        Guaranteed Benefit @   50  % on (a) above


(c)        Dearness Allowances as on 01.01.2012

(d)        03 (three) increments in the revised scale on 01.01.2012.

The basic will be (a)+(b)+(d). The total wages as on 01.01.2012 will be (a)+(b)+(c)+(d).

(c)        The aggregate amount so arrived at as above should be rounded up to the next (10) rupee and will be the revised Basic Pay in the revised scale of pay. Similarly as and when an employee is granted promotion after fixation of pay in the promoted grade, the aggregate amount so arrived should be rounded up to next ten rupee and would be the revised basic in the promoted scale.

(d)        The fixation benefit in the revised scale should be effective from 01.01.2012

4.         Annual Increment

(a)        The rate of annual increment in the revised scale of pay w.e.f. 01.01.2012 should be as per the rate provided in the scale in the earlier Paragraph. When such Annual Increment is granted the amount so arrived should be rounded to the next (10) rupee.

(b)        Where increments are granted on anniversary dates of employees, such anniversary dates of increment in the revised grade should remain same as it was existed in the pre-revised grade. The system of granting increments on two dates during the year, i.e. 1st July & 1st January wherever existed prior to revision of scale should continue.

(c)        In case only one date of Annual Increment for all the employees is decided, the principle followed in case of executives in this regard should be adopted, retrospectively from 01.04.2005

(d)        The superannuating employee should be granted one additional increment on the day of superannuation for the purpose of computation of leave salary on any kind of leave due, i.e. E.L., HPL or Medical Leave, C.L., National Holidays, Restricted Holidays and gratuity.

(e)        The superannuating employees should be granted E.L. Medical Leave or H.P.L., C.L., National Holidays and Restricted Holidays at the rate of full quota treating as if he/she had worked for the whole year.

5.         Allowances/Perks

(a)        All the employee should be given Parks/Allowances equivalent to the amount of 50% of the wages (Basic + DA) every month under the similar scheme adopted for the Executives.

(b)        Night Shift Allowance

Night Shift Allowance should be paid @ Rs.200/- per night shift who works during the period from 6 P.M. onwards.

(c)        Uniform

All the employees should be provided with 04 pairs of uniforms during a calendar year with provision of payment of reimbursement of washing expenses @ Rs.200/- per month excepting the Nursing and Fire Fighting Staff. The rate of payment of Washing Allowance for these two categories of employees should be Rs.300/- per month.

(d)        Canteen Facility

All the employees should be paid a sum of Rs.100/- per day of actual attendance towards reimbursement of canteen expenses.

(e)        The rate of reimbursement of House Maintenance expenses to employees for undertaking small jobs in their allotted Quarters in SAIL Township should be revised as under.

Type of Quarter

Amount (in Rs.)

One Room


Two Room


Three Room & above



There should be no change in the list of items for maintenance.


6.         Reimbursement of Energy  Allowance

Energy Allowance equivalent to the rate of two LPG Cylinders per month existing on the 1st day of the month should be reimbursed to the employees.

7.         Mobile Phone

All the employees should be provided with a mobile telephone and an amount of Rs.1000 - 3000 per month should be granted to each employee per month towards reimbursement of expenses towards voucher. In addition an amount of Rs.5000/- should also be paid to purchase a new mobile phone within 3 years.

8.         House Rent Allowance/House Rent Recovery

(a)        Merely as a consequence of increase in Basic pay, there shall not be any change in regard to the eligibility of workmen for allotment of Quarters. 

(b)        Employees covered by this agreement who are not living in company’s accommodation should be paid House Rent Reimbursement Allowance equal to the HRA rates irrespective of classification of city as would be revised by the Govt. of India from time to time. Wherever house rent are paid at a higher rate than the approved rate of the Govt. the actual amount paid for house rent by an employee should be reimbursed.

(c)        House Rent Recovery for the company’s Quarter shall continue at the rate as prescribed in the settlement dated 29th April 2010.

9.         House Building Advance & Recovery

(a)        The amount of HBA should be raised to 25 lakhs from 15 lakhs. The rate of interest on the loan amount should be as follows and the calculation should be made on reduced balances method.










(b)        The limit for grant of HBA for extension of house should be enhanced to 10 lakhs.

(c)        The details of conditions for availing HBA should be discussed, and decided in the NJCS Forum.

10.       Motor Vehicle Advance

(a)        For purchase of two wheeler

The amount of advance for purchasing two wheelers, should be equivalent to the market price of the new vehicle. The Rate of interest on such loan should be paid at a concessional rate. The calculation of interest should be made on reduced balances method.

(b)        For purchasing of four wheelers

The employees in S-6, S-7, S-8, S-9, S-10, S-11 & S-12 grade should be granted with Advance of Rs.5 lakhs for purchasing a four wheeler at a reduced rate of interest.

The terms and conditions for availing such loan should be decided at NJCS level.

11.       Education, Medical & Leave

Education Facility

(a)        In case an employee who dies or suffers permanent and total disablement while in service their children availing the facilities of education in the institution should continue to avail the facilities of education as was available to the children of the serving employee till the children complete such course in the institution.

(b)        Suitable scholarships and other incentives should continue to be given to the children of the employees with a view to enable them to persue higher studies including scholarship to SC/ST, deaf, dumb, blind and other handicapped meritorious children of the employees.                                                 

(c)        The details of the amount of scholarship, number of scholarship holder, criteria of scholarship should be discussed in detail at NJCS level.

(d)        The employees children selected for admission in professional courses should be provided interest free study loans. Similarly the employees interested to prosecute higher study and selected for higher education in abroad and IIT within the country may be granted interest-free loans with study leave with wages as it is available with other P.S.U.

(e)        The details of the scheme should be discussed and decided in the NJCS Forum.


12.       Medical Facilities

(a)        The existing medical facilities for employees and their entitled dependants with the following facilities and improved treatment shall continue with modified definition of dependants.

(b)        Referral of cases to specialized medical institution as per choice of the patient from among the listed institutions should be allowed. There should not be delay in referral matters. The referral should not be restricted but it should be made as per the advice of referral institution for any number of times.

(c)        System of reimbursement of cost of artificial limbs, lenses, pacemaker and other kinds of medical instrument/equipment necessary for the patient should be made immediately. If necessary on application advance should be made available wherever patient expresses his request, without payment of interest.

(d)        Facilities available to the superannuated and total and permanent disabled employees should continue. The referral facility should be made available to the superannuated and other kind of employees who are availing medical benefit.

(e)        Free ambulances facilities/reimbursement of ambulances expanses should be granted when the patient is brought to companies hospital or in case of referral to other hospital.

(f)        Paramedical staff should be maintained on the basis of medical norms decided by the Medical Council of India. 

(g)        If any injury external or internal are caused when going for duty or coming back from duty or while performing duty in the work premises should be treated as injury on works and accordingly existing benefit should be granted. The modality of granting such benefit should be decided at NJCS forum.

(h)        All the IGH should be elevated to medical colleges having facility for specialized treatment in Neuro Surgery, Cancer, Renal failure, Cardiac diseases with research facilities. The number of beds in Hospitals should be raised depending on the strength of employees, retired employees and neighbouring population. At least 5% of beds should be kept reserved for the weaker section people living in the periphery villages and in case of critical cases.

(i)         Where speciallised treatment facilities are not available in the company hospitals and employees suffering and receiving treatment continuously for 01 month should be referred for specialized treatment to other listed medical institutions without making delay.

(j)         Periodical meetings With Trade Unions represented in NJCS should be organized once in 02 month for restructuring and to rationalize medical faculties set up in different plant units to improve upon the health services.

(k)        The present mediclaim policy should continue without increasing the rate of premium. The present ceiling of Rs.4000/- (out door treatment) towards reimbursement of medicine etc., charges per annum should be raised to Rs.10,000/-.

13.       Leave & Holidays

The existing leave facilities should be revised as under

(a)        01 (one) E.L. for every 15 days of work + 07 days as per the existing system. Present restriction for qualifying to earn the E.L. on completion of 240 days work in a calendar year should be waved out. The employees should be allowed to earn the E.L. on the basis of their working days during the calendar year based on the above proportionate.

(b)        The Casual Leave-15-during the calendar year    

Festival/Restricted Holidays - 10 - during the calendar year   

Half pay leave/medical leave - 30 - during the calendar year

National Holidays - Netaji Jayanti & Ambedkar Jayanti should be included as National Holiday. “SAIL DAY” should be treated as National Holiday         

(c)        In case the employees were not allowed to avail their C.L. the left over no. of C.L. in the calendar year should be carried forward to the current year and the employees should be permitted to avail the same during current calendar year. If the employee is not spared during the year as per his request, such leave due should be encashed.

(d)        The present system of granting E.L. for 3 occasions in a calendar year stand be enlarged to five occasions. The weekly holiday falls in between CL-CML & HPL should be treated as weekly holiday with wages.

(e)        The employees covered under the Standing Orders should be allowed accumulation of leave as under. 

Earned Leave                         ----       300 days

Half pay Leave           ----       400 days

As and when the employee intend to encash the leave, he should be permitted to do this without any restriction.

All the left out leave available on the credit of the employee on superannuation should be encashed.

14.       Social Security

(a)        Provident Fund

The contribution of the management and the employees towards Provident Fund should be raised to 15%.

(b)        Gratuity

The existing rate of payment of gratuity in the respective plant level should be revised as follows.

Retiring Gratuity should be calculated on the last pay drawn (i.e. basic + DA taken together) by an employee @ 20 days for every completed years of service. The formula for computation of gratuity for payment of days wages per one year of service should be as follows for service period of twenty years.

Monthly wages (i.e. Basic + D. A. last drawn taken together) × 20 x 20  ………….. (a)


(c)        For service beyond 20 years gratuity should be calculated at the rate of one month wages (Basic + DA) last drawn taken together for every completed years of service in excess of 20 years

(d)        Total amount payable for gratuity should be (a) + (b)

Training period of Trainees where it is followed with regular employment should be counted for the purpose of computation of gratuity.

(e)        The above amount of gratuity should be payable under laid down conditions in the relevant statute only. No other conditions in any other form should restrict the payment.

(f)        If the temporary/NMR employees put in a minimum of 240 days of work in a year, the year should be counted for computation of gratuity.

(g)        For the purpose of computation of gratuity in continuation of service, the requirement of 240 days for the first year of service only as existing presently should be reduced to 200 days. The completion of 200 days work for subsequent years should not be made applicable to earn gratuity.

(h)        The period of service rendered during the year of superannuation is 100 days or more it should be reckoned as full one year for purpose of computation of gratuity. If the service rendered is less than 100 days in the said year of service then gratuity should be paid proportionately.


(i)         SAIL Employees Superannuation Benefit Fund (SESBF) and Performance Linked Benefit Scheme (PLBS) should continue. The management should deposit their share of amount to the found for the past years wherever contributions are not paid.


(j)         Life Coyer Scheme

The payment under the above Scheme should be revised.

(k)        Employees Compensation Benefit

The employees covered under the settlement should be entitled to benefits admissible under the Employees Compensation Act 1923 as amended by the Workmen's Compensation (Amendment) Act .........2009 (45 of 2009)

(l)         The benefits under the above Act should not be affected adversely on account of revision of wages through settlements.

(m)      The compensation during the period of disablement should be paid on the basis of the wages which the employee would have been entitled to receive on the day of declaring him fit/to resume duty or declaring him unfit to perform his normal duty further, had he been continued in his service with wages.

(n)        The erstwhile wages on rehabilitation should be protected irrespective, of the place where he/she has been rehabilitated.

(o)        Employees compensation benefit should continue to be extended to the injury cases causing death or permanent/total temporary disablement arising during journey from residence to place of work and back. This should cover both internal / external/ visible/ invisible injuries.

(p)        If an employee is disabled due to accident arising out of and in course of employment, he/she should get full wages and dearness allowances including other benefits which he would have received had he been continued on the job from the date of accident till the date he resumes his duty.

(q)        In case of death or permanent total disablement due to accident arising out of and in course of employment, employment to one of his/her dependants should be provided without making any condition.

(r)        Employees Family Benefit Scheme

The Family Benefit Scheme should be modified. It should be only optional The benefit should he granted to the eligible dependant(s) from the date of death of the employee.  

15.       Final Settlement of Retirement or Death

(a)        Final Settlement of P.F. & Gratuity should be made on the date of Retirement/Release without waiting for complying any formalities. The Account Payee Cheque separately, on account of P.F. and gratuity should be handed over to the concerned employee on the very day of his retirement followed with a function along with service certificate and memento. Other dues should be paid within 15 days.

(b)        The employees working in the mines should be paid difficult area allowance @ 20% of wages on the revised scale along with payment of mining allowance.

16.       Additional Superannuation Benefit Scheme

(a)        The company should create a fund by contributing 20% of the wages in respect of all the employees monthly to avail pension, mediclaim and towards life insurance. The scheme should be similar to that which has been proposed for executives in addition to the benefit assured in different scheme under the statute.

                              (b)        The demand in respect of better benefits under mediclaim scheme as mentioned earlier should be met with till the finalization of the proposed scheme is made in this Paragraph.

17.       Leasing out Land & Allotment of Houses to Retired Employees

(a)        The unutilized land should be leased out among the superannuated employees who are residing in Rourkela on the basis of seniority and length of service rendered along with existing employees who have served 15 or more years to SAIL plants. The lease should be confined to non-executives only.

(b)        The employees’ dependants receiving benefit under EFBS should be allowed to retain the accommodation on payment of rent.

(c)        The surplus Qrs. if any should be provided to retiring employees and the monthly rent should not be more than thrice of the standard rent fixed for the type of Qrs. allotted. The allotment of such Qrs. should be confined to the non-executives only.

(d)        All the existing Qrs. in the category of IR, IBR, IBR (HT), non-standard Qrs. should be modified and enlarged with marble flooring taking into conditions of such Qrs. in Township. Extra electrical points should also be provided.

18.       Fixed Incentive

An amount of Rs.500/- should be granted to all the non-executives as fixed incentive.


19.       Payment of (PRP) Performance Related pay

            A scheme should be evolved for payment of PRP in every month at plant level in addition to Incentive and Reward Scheme & Annual Bonus.

20.       Recruitment

            The recruitment should be made only at S-1 S-3 & S-6 levels with the minimum qualification assigned to the grade as literate, matriculate with ITI, Diploma or Graduates in any discipline respectively. These posts should be filled up from the domiciles of the state only where the plant is located as per the precedent/practice followed over the years from the inception of the respective plants. Additional vacancies should be created to provide employment to left out displaced persons.

21.       Implementation of Agreements

The terms of the agreement which have not been modified or replaced but not implemented or its implementation discontinued as follows should be enforced strictly here onwards.

Clause No. A need based mobile communication be introduced under CVG at plant and mines level for non-executive employees.

Clause No. It was agreed to examine the introduction of study loan for higher studies at the subsidized rate.

Clause No. The existing medical facilities for employees and their entitled dependants including the following shall continue.

a) Referral of cases to specialized institutions

b) System of reimbursement of cost of artificial limbs and pacemaker.

c) Facilities in case of superannuation/death/permanent total disablement.

Clause No. Necessary steps shall be taken to improve the facilities in the plant hospital for the benefits of the employees of the company and their entitled dependants in the following areas.

(i) Specialized treatment in Neuro Surgery, Cancer, Renal Failure, Cardiac diseases and occupational diseases.

(ii) Improvement in the indoor treatment facilities including the number of beds.

Clause No. Wherever specialized treatment facilities are not available in the company hospital, employees and their entitled dependants, as required will continue to be refered to specialized institutions within the country for the treatment.

Clause No.3.5.4: The feasibility of Scheme for employees shall be examined and discussed at a later stage.

Clause No.3.6.1: Abolition of contract labour on the job of permanent and perennial nature will continue to be done by regular employee.

Clause No. Improvement in existing facilities in the company’s Township.

Clause No. The management shall continue to provide education to the employees’ children up to matriculation or equivalent standard in the School run by SAIL. The management shall continue to provide the facilities for +2 Scheme in according with the State Govts. Regulation in the school run by Steel Plant.

Clause No. The existing facilities for tuition fee reimbursement will continue.

            The employees who had been superannuated in between the period from 01-07-2007 to 29-04-2010 and availed encashment of leave are entitled to payment of differential of wages during the said period. Though the dues towards P.F and Gratuity on account of revision of wages from 01-07-2007 onwards have been paid to superannuated and existing.

Employees the differential amount on account of revision of wages towards encashment of leave have not been given till date. All the employees including superannuated employees who have not been paid such dues should be paid the differential amount.

            So far the above terms & conditions of service are concerned, they have not been implemented till date. We therefore urge upon the management to implement the above terms in its true spirit and letter.

22.       Transfer

Transferring an employee from one Department to another having different LOP without the consent of the employee should be stopped forthwith. No employee should be transferred without his consent. The transfer/placement within the department in different position based on the requirement should be made rationally and on rotation basis. It should not be made with an ulterior motive to fulfill the desire of certain officers or union officials.

23.       Compassionate Employment

The recent Scheme circulated on 28.08.11 for providing compassionate employment on medical invalidation should be modified in consultation and agreement with the unions in NJCS level. The stringent conditions laid down in the scheme need to be replaced to fulfill the objectives behind the providing such employment.

24.       Superannuation of Age

The age of superannuation should be raised to 62 years from 60 years.

25.       Field Movement Allowance

The workmen who are required to attend their duty in different locations as per the requirement after reporting for their duty in the place of reporting should be given filled movement allowance @ Rs.100/- per days of attendance or money equivalent to 15 liters of petrol.

26.       Payment of Non-Practicing Allowance

The different categories of employees other than Doctors who are working as paramedical staff should be paid non-practicing allowance in the similar lines with the Doctors.

27.       Eligibility of S-12 for E-O Post

After creation of S-12 grade, it should be kept out of the perview for counting the nos. of years spent in the grade for qualifying period to became eligible to appear interview/written test for E.O. the present system of eligibility to appear interview/ written test for E-O should continue. S-12 employees should also be called for written Test/ Interview for E-O

28.       Special Increment

The employees Qualifying in the written Test for E-O should be granted two special increments if they are not promoted to E-O.

29.       Period of Settlement

The above demands are placed keeping in view that the terms of new settlement will commence from 01.01.12 and remain valid till 31.12.16 and will continue thereafter till they are replaced by another settlement with new terms of conditions effective from 01.01.17.

30.       Eligibility Period for Promotion to S–11 grade

            The employees completing 4 years in S-10 grade should be promoted to S-11 grade.

For Contract Labour

The wages of contract labour should consist of a basis pay at par with similarly placed regular workers with provision of payment of DA based on increase of AICPI quarterly. The wages, and benefits for contract labour should be uniform in all steel plants.

The minimum wages of contract labour irrespective of their work, place such as Works, Project or Township should remain same and be uniform. There should not be different rate for working in different area. Minimum wage for the contract labour working in SAIL irrespective of Plant & Department should be at one rate.

As the SAIL steel plants have its own Trust Board for maintenance and regulating the P.F. A/c of its employees and the contract labours are treated as its employees under section 2(f)(i) of the Act, their P.F. should be administer through the Trust Board.                

Contract labours should be given medical treatment in the company's hospital. Such employees should be kept out of coverage of E.S.I.   

All the statutory benefits must be complied by the principal employer

In case of fatal accident, the respective plant authority should pay compensation to the dependants of the deceased and employment to one of the dependants of the family in the Companies Roll.

The employees who are made permanent on the job which have been identified as permanent and perennial in nature should not be off-loaded again and given to the contractor. The other jobs which would be identified or already identified as permanent and perennial, in nature, no contract labour should work on such jobs. The provision of abolition of contract labour in the existing agreement should continue.

We may be at liberty to add, amend, modify the above demands if situation arises.



(Rajendro Prasad Singha)

National Vice President

Hind Mazdoor Sabha &

Steel, Metal & Engineering Workers’ Federation of India

Telefax: 0671 2506266

Mobile: 09437152224