Major Ports’ Strike in India could lead to loss of ₹125 crore daily

This action may create a ripple effect throughout international trade, coming at a critical time when products like leather and apparel are being shipped to global markets for the Christmas and New Year sales. Any delays in these shipments could severely impact exporters, potentially jeopardizing future orders, warned an official from a leading apparel company.

The workers are seeking immediate settlement of pay revisions and pension benefits that have been pending for more than two years. They submitted their demands in September 2021, six months after the previous agreement expired in December 2021. Despite multiple meetings, the bipartite wage negotiation committee failed to meet the workers’ demands. The strike, driven by frustration over these prolonged delays, could result in a daily loss of ₹2,125 crore. The previous agreement, signed on August 30, 2018, expired on December 31, 2021, and the new settlement, which should have taken effect from January 1, 2022, remains unsigned, according to T. Narendra Rao, General Secretary of the Water Transport Workers’ Federation of India (CITU), one of the five unions organizing the strike.  

Rao highlighted that essential services, including the movement of containers, coal, and iron ore, would be severely impacted, paralyzing port operations. The other unions involved include the All India Port & Dock Workers Federation (HMS), led by both Kulkarni and Shanthi Patel, the Indian National Port & Dock Workers Federation (INTUC), and the Port, Dock & Waterfront Workers Federation (AITUC).

“We are not begging for charity but are fighting to protect our rights and privileges,” Rao stated, criticizing the government’s and port management’s “lethargic and cruel attitude” toward employees and pensioners, with 32 months having passed since the previous agreement expired.

The strike threatens to exacerbate the existing challenges faced by the trade sector due to the Red Sea crisis, noted S. Nataraja, Secretary of the Chennai Custom Brokers’ Association. With port employees refusing to operate tug boats essential for berthing and sailing vessels, all general cargo, dust cargo, bulk, and break-bulk operations will halt. Although private container terminals may continue their receipts and deliveries, vessel berthing and departures will be impossible.

Ishwar Achanta, President of The Federation of Association of Stevedores, warned that the disruption at major ports could force a diversion of traffic to minor ports, which are likely to raise handling charges in response to increased demand. “We cannot afford any disruption to our work, as it will have far-reaching and cascading effects, threatening the livelihoods of 20,000 dock workers and over 200,000 stevedores,” he said, emphasizing the potential economic losses.

In response, the Indian Ports Association has called for an urgent meeting in Delhi with the Presidents and General Secretaries of all major port workers’ federations on August 27th.

 The Bipartite Wage Negotiation Committee is also scheduled to meet on Wednesday 28 August. Despite these discussions, Rao reaffirmed that the strike is set to begin at 6 a.m. on Wednesday at all major ports.