The talks between Coal India management and workers union on salary revision failed today, two weeks after they agreed in principle to hike wages by 25%.

"The Coal India [CIL] management and workers union could not come to an agreement as in our opinion their [workers unions] demands were very high," the company's Chairman NC Jha said.

Secretary General of Indian National Mineworkers Federation (INMF) SQ Zama said: "Today's meeting between CIL management and worker unions ended in a failure."

The country's largest coal producer CIL's employee strength is over 3 lakh.

"The meeting failed as the management refused to accept some of our demands including, increasing the underground allowance from 12.5% to 15%," he added.

Both the management and unions are likely to meet again soon to sort out the differences.

A fortnight ago on January 13, CIL, had agreed in principle to increase wages of workers by 25%.

"An agreement is almost finalised between unions and CIL and the wage hike will be around 25%. The hike is from the level of June, 2011," a senior CIL official had said, adding, "The additional outgo is estimated at Rs 4,000 crore."

At present, CIL and its subsidiaries spend about Rs 20,000 crore annually on salary of workers which is roughly 40% of production cost.

"The management's offer is for 25% hike for both wage and perks, but we are demanding a hike of 50% in perks. Post-retirement benefit should increase to 30% from 21%," All India Coal Workers Federation General Secretary Jibon Roy had said.