Around 2,000 contract workers working with the Balco will now get wages at par with the regular employees of the company. The decision was announced on 15 June 2006 by the Assistant Labour Officer, Korba, after a prolonged deliberation between the contract workers’ union, Bharat Aluminium Mazdoor Sangh (affiliated to INTUC), and the contractor, Nikhil Overseas Pvt. Ltd. An order issued by the Assistant Labour Officer, specifically says that the contract license will not be granted unless employees are given all benefits which they are entitled to under the Factories Act.

According to the new agreement, there will be a wage hike of Rs 2,000 for an employee. This means that besides basic pay, a worker is entitled to house rent, conveyance and canteen allowances. The term period of the agreement is 1 March 2006 to 28 February 2007.