An indefinite strike that was scheduled to occur across 12 state-owned ports in India on Dec. 17 has been averted. More than 18,000 union dockworkers from six federations decided to cancel the strike following the Indian government’s commitment to ensure that their employers adhere to the terms of the recently signed five-year agreement.
India’s ministry of ports, shipping, and waterways has secured government approval to instruct the Indian Ports Association (IPA) to enforce updated contract conditions, which include wage adjustments and pension benefits that were initially agreed upon in late summer.
The dockworkers were prepared to strike if their demands were not met. They were concerned that the wage and benefit promises were not being upheld.
According to a government official speaking to Indian publication Infra from The Economic Times, the agreement signed with the workers’ unions has now been approved, and orders are being issued to the Indian Ports Association to implement the settlement reached by the Bipartite Wage Negotiation Committee. This resolution has prevented the strike from taking place.
The federations initially agreed to an 8.5 percent wage increase over five years, effective from Jan. 1, 2022, along with cost-of-living adjustments and a monthly allowance of 500 rupees ($5.95). An updated performance-based bonus system was also part of the agreement.
Although the reward system was approved by Prime Minister Narendra Modi and his Union Cabinet in October, the unions reported that retired employees were not receiving the retroactive benefits owed by the IPA.
Apparel businesses importing goods and textiles from India will benefit from this decision. India is a significant player in the global apparel market, exporting $15.4 billion in apparel in 2023, making it the fifth-largest apparel exporter in the world.
During the April to November period, the 12 IPA ports handled 549,469 metric tons of cargo, showing a 2.6 percent increase compared to the same period in 2023. The state-owned ports processed 8.8 million 20-foot equivalents in the eight-month duration, an 8.2 percent rise from the previous year.
While the strike threatened to disrupt India’s ocean freight ecosystem, private container terminals at state-owned ports and the privately held Mundra Port would have remained operational, preventing a complete standstill.
Amidst mounting tensions over a delayed deal implementation, Indian workers set a decisive deadline of December 15 to address their contractual grievances or face the threat of a strike that could cost exporters a staggering $15 million daily, as reported by The Hindu Business Line.
Leading up to the ultimatum, hundreds of workers took to the streets in solidarity with union demands, culminating in protests on December 5. The unions had been vocal in their frustration, accusing India’s ports and shipping ministry of apathy towards the contract and the workers’ plight. The ministry’s wage negotiation committee, responsible for bridging the gap between the previous contract’s expiry on December 31, 2021, and the new agreement in August, had convened a mere seven times, prompting criticism from the labor unions.
Despite facing backlash from labor federations, the ministry remained steadfast in its vision to bolster India’s global maritime status by the turn of the decade. Speaking at the Indian Maritime Heritage Conclave in New Delhi, Shipping Minister Sarbananda Sonowal highlighted India’s strides towards becoming a key maritime player by 2030, emphasizing advancements in port operations, logistics, and monumental infrastructure projects.
India’s ambitious maritime agenda is underscored by a slew of expansive port development ventures slated for completion by 2023. Prime Minister Modi recently laid the groundwork for the $9 billion Vadhvan Port in September, while Adani Ports completed the first phase of the Vizhinjam Port, signaling significant progress in India’s maritime landscape.
As the country navigates through crucial negotiations and transformative projects, the future of its maritime industry hangs in the balance, poised for unprecedented growth and global recognition on the horizon.
