RINL Workers Hit Back at Production-Linked Pay

Labour unrest is escalating at Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of the Visakhapatnam Steel Plant, after management announced that employee wages would now be linked to production. Unions have approached the Regional Labour Commissioner, demanding an immediate revocation of this decision, which they claim violates labour laws.

“This is completely unfair to workers who have already endured delayed payments for over a year,” said a union leader. Workers at the plant have been waiting for their full salaries since September 2024. Initially, management paid only half of the wages, gradually increasing payments to 65% and then 75% after protests. Full salaries were restored in September 2025, but the new production-based system has reignited anger among the workforce.

Employees argue that linking wages to production is unreasonable, given the plant’s outdated machinery and pending maintenance. “How can we be held responsible for production when the machinery is outdated and maintenance is overdue?” said one worker, reflecting widespread concerns.

By August 2025, employees were reportedly owed 355% of their salaries, totaling nearly Rs. 350 crore. Union leaders have described the pay system as “adding insult to injury,” stating, “We are asking for nothing more than our rightful salaries. Linking pay to production is an additional burden on already strained workers.”

Experts note that no other steel plant in India ties salaries to production. RINL continues to struggle with output due to aging machinery, halted maintenance, and ongoing repairs. Recently, a belt in the raw material handling plant broke, potentially halting production for three days.

In response, employees have staged protests, worn badges highlighting their demands, and plan to continue demonstrations today and tomorrow. “We will not stop until management ensures fair wages and timely payments,” said another worker, emphasizing the growing unrest.