Indian ports propose wage hikes to avert strike

Port of Nhava Sheva in Mumbai, India (Source: Container-News)

Efforts by stakeholders to avert a nationwide strike at Indian ports appear to have begun. The Indian Ports Authority has informed stevedore unions, who have threatened to stage an indefinite strike from August 28, of a revised wage hike proposal that it is willing to implement as a conciliatory gesture.

Union sources speaking to Container News confirmed the approach from the Indian Ports Association (IPA), a body that manages 12 major ports in the country.

“The labour federations are studying the proposal and will hold a joint meeting between ourselves on 24 Aug. to decide the next course of action,” a union representative said.

However, the labor groups appear to be in no mood to make concessions on their demands, saying the proposal is not even worth negotiating.
“The proposed revisions are meagre,” the source pointed out. “The last wage revision package was implemented in 2017, which was due for renewal in 2022,” the official added.

“The unions will deliberate on a co-ordinated stance to be conveyed to the port administration,” the source added.

The IPA invited labor representatives to the first round of negotiations on August 27, shortly before the threatened action took place.
“The revised proposal is subject to the ministry’s guideline that – the wage revision shall be subject to the condition that there shall be no increase in labour cost per physical unit of output,” the authority said in the letter.

The IPA also clarified: “Hence, the individual ports may offer the settlement plan in staggered manner in order to keep the labour cost per physical unit of output under control.”

It remains to be seen whether the two sides will agree to a deal at the proposed meeting in New Delhi on August 27.

For now, the seemingly defiant stance of union leaders has raised concerns about a nationwide strike at seaports, which could cause disruption to trade sectors already grappling with the lingering effects of challenges related to the Red Sea crisis.

Source: Phaata.com (via Container-News)

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