Exemption of the loading and unloading of washed coal in Chasnalla washery of Indian Iron and Steel Company (IISCO)

## Report on Exemption Regarding Contract Labour in Chasnalla Washery of IISCO **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Labour and Employment, Government of India, which exempts the loading and unloading of washed coal in the Chasnalla washery of Indian Iron and Steel Company (IISCO) in Dhanbad from a prior notification (S.O. 2063, dated June 21, 1988) regarding the employment of contract labour. This exemption is granted for a period of five years, subject to specific conditions designed to protect the interests and welfare of the contract workmen involved. The key findings indicate a focus on ensuring fair wages, benefits, and employment preference for existing workers upon contract changes. **2. Introduction:** This report aims to provide a comprehensive overview of the notification S.O. 1395(E) issued on March 25, 2022, by the Ministry of Labour and Employment, concerning an exemption related to contract labour at the Chasnalla washery of IISCO. This analysis is based solely on the text of the provided notification. **3. Policy Overview:** * **Amendment:** This notification acts as an amendment to the Government of India’s Ministry of Labour notification number S.O. 2063, dated the 21st June, 1988, which regulated the employment of contract labour. * **Core Objective(s):** Based on the text, the core objective is to provide a conditional exemption from existing contract labour regulations for a specific operation (loading and unloading of washed coal) within a specific facility (Chasnalla washery of IISCO), while simultaneously ensuring the protection and welfare of the affected workmen. **4. Background and Rationale:** The notification amends a prior regulation concerning the employment of contract labour. The rationale for this specific amendment appears to be a desire to grant operational flexibility to IISCO's Chasnalla washery for a specific task (loading/unloading washed coal) while imposing conditions focused on worker welfare such as adhering to wage standards established by the Coal India Limited's High Powered Committee and ensuring preference for existing workers during contract transitions. The amendment suggests a need to balance regulatory oversight with operational needs within the coal industry. **5. Key Provisions / Changes:** The primary change introduced by this notification is the exemption of loading and unloading of washed coal in Chasnalla washery of IISCO from the applicability of notification S.O. 2063, dated June 21, 1988, for a period of five years. * **Specific Part of Original Policy Changed:** The notification S.O. 2063, dated the 21st June, 1988 is being partially suspended in applicability at the Chasnalla location for the specific activities. * **New Rule/Provision:** The new provision is the *exemption* itself, which allows IISCO to operate outside of the restrictions defined in S.O. 2063 for the specified activity for 5 years. However, the exemption is conditional. The key conditions are: * Protection of the interests of the workmen. * Payment of wages and benefits as per the recommendations of the High Powered Committee appointed by Coal India Limited and rates notified by Coal India Limited. * The Central Advisory Contract Labour Board has the right to inspect the establishment to ensure compliance. * Preference in employment for existing contract workmen by incoming contractors, subject to satisfactory performance. * Workmen in ancillary jobs get wages as determined by the High Powered Committee appointed by the Coal India Limited. * Payment of High Powered Committee wages and other benefits as per the provisions of the Mines Act, 1952. * Contract workers shall be covered under the provisions of the Payment of Gratuity Act, 1972. * Contract workers shall be paid bonus and leave with wages as per the provisions of the Mines Act, 1952. * **Difference/Effect:** The effect of this change is that IISCO's Chasnalla washery, for the specified activity, is no longer directly bound by the rules of S.O. 2063 *as long as* they adhere to the conditions stipulated in the exemption notification. This potentially allows for more flexible labour arrangements but also mandates specific worker protections. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * The Management of Indian Iron and Steel Company (IISCO), specifically the Chasnalla washery. * Contract workmen engaged in the loading and unloading of washed coal at the Chasnalla washery. * Contractors providing labour for the loading and unloading of washed coal at the Chasnalla washery. * The Central Advisory Contract Labour Board. * Coal India Limited. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** * Ministry of Labour and Employment (issuing authority). * Indian Iron and Steel Company (IISCO), Chasnalla (responsible for compliance). * Coal India Limited (through the High Powered Committee for wage determination). * The Central Advisory Contract Labour Board (responsible for inspection and enforcement). * **Timelines/Procedures:** * The exemption is valid for a period of five years from March 25, 2022. * Wages are expected to increase every six months based on the High Powered Committee recommendations. * Whenever there is a change of contract, the management of IISCO, Chasnalla shall ensure that the existing contract workmen may be given preference in employment by the incoming contractor. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this amendment are: * Increased operational flexibility for IISCO's Chasnalla washery in managing contract labour for the specified activity. * Improved working conditions and benefits for contract labourers at the Chasnalla washery, aligning their wages and benefits with standards set by Coal India Limited. * Ensured continuity of employment for existing contract labourers during transitions between contractors, subject to satisfactory performance. * Overall, a balance between operational efficiency and the protection of workers' rights. **9. Conclusion:** The notification S.O. 1395(E) represents a conditional exemption from existing contract labour regulations for a specific operation at IISCO's Chasnalla washery. Its significance lies in its attempt to streamline operations while simultaneously safeguarding the interests of the affected contract workmen by mandating adherence to industry wage standards, benefit provisions, and employment preference during contract changes. The Central Advisory Contract Labour Board's oversight role is crucial for ensuring compliance and realizing the intended benefits of this exemption.

Key Entities Referenced