Indian port workers call off strike after new wage deal

MUMBAI (ICIS)–Indian port workers have called off their indefinite strike scheduled to begin on Wednesday following an agreement with the Indian Ports Association (IPA) and the Ministry of Ports, Shipping and Waterways on 27 August.

The agreement has averted a strike by around 20,000 port and dock workers at India’s 12 major ports.

The workers have agreed to a settlement which would give them a fitment benefit of 8.5% on the aggregate pay as of 31 December 2021 and a 30% variable dearness allowance as of 1 January 2022, an official in the shipping ministry said.

The settlement will last for five years beginning January 2022, he said, adding that a drafting committee constituting all the stakeholders is expected to finalize the terms of the settlement within ten days.

The strike would have created problems for exporters who have been struggling with high freight costs and could have led to further congestion at the private and minor ports across India.

Fearing disruptions, exporters had also asked the government to resolve the issue at the earliest, the shipping ministry official said.

“There is already a shortage of ships and containers, and a disruption at this point could hit the domestic industry as well as international trade,” Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FEIO) said.

Exporters are currently gearing up to cater to Christmas orders from western markets and the strike would have delayed exports indefinitely, he said, adding that the imports of raw materials and fuel would also be hampered.