Indian Port Workers Avert Strike with New Five-Year Agreement

27 Aug Indian Port Workers Avert Strike with New Five-Year Agreement

Nearly 20,000 workers at major Indian ports, who had planned to go on an indefinite strike starting Wednesday, have called off their protest after reaching a new five-year agreement late Tuesday.

The deal, which includes an 8.5% pay increase over five years, was finalized after prolonged negotiations between workers’ unions and the Indian shipping ministry. The agreement prevents further disruptions in the already strained global supply chain, which has been grappling with higher freight costs and congestion at key ports in Asia and Europe.

The workers’ unions initially demanded a 10.6% pay raise, but after discussions, they agreed to the lower figure. The negotiations were part of ongoing efforts to address pay revisions and pension benefits, initiated by the shipping ministry’s bipartite wage negotiation committee in March 2021.

With a combined cargo handling capacity of 1.62 billion metric tons annually, ports such as Chennai, Cochin, and Mumbai play a crucial role in India’s status as one of the world’s largest exporters. The workers’ decision to defer the strike was formalized in a document signed by union leaders and reviewed by Reuters.

This agreement marks a significant step in maintaining stability at these critical hubs, ensuring continued operation without further disruptions.