Miners end India coal strike as Modi government backs down
Planned five-day strike ends early after government agrees to look again at privatisation plans, representing an early setback for Prime Minister Modi’s economic reforms
Indian coal miners were upset about the government's plans to privatise the industry and planned a five-day strike in response. It has since been cancelled after the government agreed to rethink the plans
The first major test of Indian Prime Minister Narendra Modi’s planned economic reforms has led to an apparent – if temporary – defeat. A five-day strike organised last week in the country’s coal industry – led by state-backed Coal India – was abandoned after just one day when the government agreed to re-examine it’s planned tendering process for new licenses. The original proposals would have seen private companies run previously state-owned producers of coal, leading to many workers fearing an erosion of their rights.
The government appeared to have caved on Wednesday evening
Five unions across the industry organised the strike that impacted as much as 75 percent of the country’s coal production. 3.7 million workers at Coal India stopped working at what was seen as the country’s largest example of industrial action since 1977.
However, the government appeared to have caved on Wednesday evening, when Coal and Power Minister Piyush Goyal told union leaders that he would form a committee that would look at the plans and address workers’ concerns.
Not all of the unions were appeased by the government’s stance. The Centre of Indian Trade Unions’ GeneralSsecretary Tapan Sen told The Economic Times of India that there were no concrete proposals and so they would continue to organise protests over privatisation. “We disagree with the stand of the other four unions and our opposition to the coal ordinance will continue in the form of demonstrations tomorrow (Thursday). There is no reason why the five-day strike should have been called off in two days by the other unions since nothing concrete has been assured to the workers.”
India’s coal industry is effectively a state monopoly, and many people have called for an opening up of the industry, so that it can become more competitive. Modi’s government will obviously look to implement some form of liberalisation in the future to the industry – and others – but this setback certainly shows how much of a struggle he will face in getting his reforms passed in the coming years.
