Home > Gujarat miners get 'one off' pay relief

Gujarat miners get 'one off' pay relief

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Workers have had some relief in the continuing Gujarat pay issues, as the company organises a 'one off' payment.

It comes less than a week after Gujarat NRE shareholders voted in favour of a takeover deal by Jindal for the embattledcoal miner.

Around 200 shareholders voted unanimously yesterday to allow the Indian company to buy up to 53.63 per cent of Gujarat shares.

The deal is expected to inject $68.8 million of new capital into the company, and once debts are paid, $18.7 million will be left for Gujarat to pay its workers and suppliers.

Tensions have been high between the company and its workers.

At the recent meeting between shareholders and Gujarat NRE head Arun Jagatramka, the chairman, caused ire by arriving to the meeting in a black Bentley, causing some shareholders to state "you’re up there eating fillet steak and those guys can’t even afford mince and pay their bills".

"You haven’t been paying your bills for years and years, mate."

Now workers have been informed that there will be a one off payment this week, according to the Illawarra Mercury.

"Until this afternoon, the company’s bank accounts were subject to a garnishee order from the ATO [Australian Tax Office], which restricted the company from making any payment including wages," Gujarat NRE said in a company statement.

"Due to special efforts on the part of the company, the ATO has now allowed the company to make a one-off payment for this week’s wages to its employees.

"Every effort is being made to process this payment as quickly as possible and the company is hopeful that the payment will be finalised this week."

However the ATO has rubbished these claims, telling the Illawarra Mercury that it never stopped the miner from paying its workers.

‘The ATO does not garnishee funds used to pay wages,’’ a spokesperson said.

It is now 35 days since miners were paid.

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