The proposed three-day strike by Coal India Ltd. workers has been deferred following a court ruling that supports planned pay increases. A previous court decision, which had backed a legal challenge by a group of executives against salary hikes for operational workers and other staff, was overturned by a two-judge bench at Madhya Pradesh High Court.

A.K. Jha, the national secretary at Indian National Trade Union Congress, explained that their immediate demand was the resumption of salaries for the workers, which the court order now permits. Consequently, all the major unions have collectively decided to call off the strike.

The strike had posed a threat to the supply of coal, which constitutes almost 70% of India's electricity generation. Utilities had been working to boost stockpiles after a scorching summer led to record power demand.

State-run Coal India has confirmed that the planned strike will not proceed. In the 12 months ending March 2022, the company paid out 407 billion rupees ($4.9 billion) in salaries and had reached an agreement with unions in January to increase the base pay for its non-executive staff by 19%. Officials had previously stated that the supplier would need to raise coal prices to cover the costs of pay hikes and other expense increases.