Port workers defer nationwide strike after successful talks with govt

Relief for transporters, traders who were fearing cost hikes

Unions representing port and dock workers on Tuesday deferred their nationwide strike after talks with the government assuaged their concerns on pay revision and allowances, which broke the ice and averted disruption to the country’s shipping.

“The nationwide indefinite strike called by six federations of port and dock workers from August 28 is deferred consequent on a Memorandum of Understanding between the Chairman of the IPA, the MD of IPA, and representatives of the six federations,” a joint statement said.

Business Standard has reviewed a copy of the signed joint statement. 

The statement was signed by union leaders from All India Port and Dock Workers Federation, All India Port and Dock Workers Federation (Workers), Water Transport Workers Federation of India, Indian National Port and Dock Workers Federation, Port dock and Waterfront Workers Federation of India, and Bharatiya Port and Dock Mazdoor Mahasangh. 

A crucial meeting between labour unions of the country’s 12 major ports, Union minister for ports shipping and waterways Sarbananda Sonowal, and the Indian Ports Association (IPA) on wage revision and pension benefits reached consensus, potentially averting a strike that could disrupt India’s shipping.

“The Bipartite Wage Negotiation Committee meeting saw discussions between union leaders and Indian Ports Association, and a fitment benefit of 8.5 per cent on the aggregate amount of basic pay as on 31 December 2021, plus 30 per cent of VDA as on 1 January 2022 shall be given,” sources aware of the developments said.

This was later confirmed by the official statement by the national coordination committee of major ports workers’ federations.

“It was decided that the pay scales effective from 1 January 2022 shall be formulated as per existing practice,” they added. The period of settlement will be from January 2022 to December 2026.

A request by this paper for comment to the ministry of ports, shipping and waterways remained unanswered till press time.

Sonowal is said to have intervened to ensure settlement on the fitment benefit to 8.5 per cent. Officials said that a drafting committee will be constituted by the wage committee scheduled on Wednesday, which will prepare a settlement within 10 days.

The committee will comprise one representative from each of the six federations and representatives from management. 

At the crucial meeting, the management assured protesting federations that BWNC proceedings shall be concluded by the settlement within 15 days.

The wage negotiation committee had met several times in the past. But no consensus was reached and the workers’ demands had remained unmet. 

The call for strike had become a cause for concern for traders and transporters, anticipating congestion and price hikes. The strike would have reportedly cost Rs 125 crore in losses for every day that it went on.

Sources at Jawaharlal Nehru Port Authority (JNPA) said that the port, responsible for handling a bulk of container trade, said that there would have been no impact of the strike on the port's operations.

“There was a concern that when cargo traffic gets diverted from ports where the workers are on strike to private ports, freight costs may increase on account of congestion surcharge,” said the chairman of a freight forwarding body earlier on Tuesday.

Global logistics players had begun taking note of the situation. APL Logistics, a wholly owned subsidiary of the Kintetsu World Express Group, a Japanese transportation company, had said in an advisory on Monday that it was monitoring the situation in India.