A potential strike at India’s state-operated ports, which could have disrupted cargo operations and had broader regional implications, has been averted for the second time. Six unions representing over 18,000 workers had set a deadline of December 15 for the implementation of a wage package, threatening an indefinite strike starting on December 17. The strike would have impacted the Indian economy and regional shipping, particularly affecting bulkers, despite privately operated ports not being involved in the dispute.
The 12 state-owned ports, including Mumbai, Nehru Port, New Mangalore, and Cochin, handled over 500,000 metric tons of cargo in the first eight months of 2024. Cargo volume at these ports increased by 2.6%, with container volume up over 8% to 8.8 million TEU. The strike threat arose from failed contract negotiations over an 8.5% wage increase over five years, cost-of-living adjustments, a new performance-based bonus system, and job security during port modernization.
The Indian Ports Association failed to implement the agreement by the December deadline, citing unresolved issues. However, after intervention from Prime Minister Narendra Modi and approval from the Union Cabinet in October, the agreement was finally settled. The Ministry of Ports, Shipping, and Waterways was set to issue an order for the IPA to implement the wage agreement, leading to the withdrawal of the planned industrial action by the unions.
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