News / Indian shippers brace for port strikes over 'promises not kept'

© Bakhtiar Zein

Indian shippers are fearful of major supply chain disruptions after dockworkers called for strikes at key ports, claiming the government has failed to meet commitments. 

A consortium of labour groups told port authorities workers would stage indefinite work stoppages across ports from 17 December in protest at the lack of action to address long-standing concerns. 

The move centres on wage revisions and pension benefits. Union sources complained that governing body the Indian Ports Association (IPA) had been “apathetic” about making recommendations in line with specific promises made during talks to avert a strike planned in August. 

“It is imperative on the part of the IPA to forward the settlement to all the port authorities for implementation, as per the practice hitherto followed,” said the labour consortium. 

“It is highly objectionable to state that, even after a lapse of two months after signing the settlement, it was not forwarded to the authorities for implementation,” they added. 

Union leaders also said workers would hold rallies at port locations on 5 December to highlight their grievances, as part of preparations for the industrial action. 

A productivity-linked reward (PLR) scheme remains at the heart of the impasse, and needs to be approved by the federal government retroactively to 2021. With no PLR guidelines in place, interim retirees from the ports have lost such benefits, unions claim.  

“The workers and pensioners are restless, and [they are] compelled to go on industrial action against the non-implementation of statutory settlements,” said the labour groups. 

According to IPA sources, the ministry of shipping needed to issue an order approving wage revisions for port workers, which “has been delayed”, one official told The Loadstar. 

The source of funding to cover additional overheads by the government ports, amid growing market share challenges from the private port sector, could be a major reason pushing the decision back at government level, according to industry observers. 

There are 12 government-controlled ports in India, but Adani Ports-run Mundra recently overtook Nhava Sheva to become India’s busiest container gateway. Similarly, Chennai has ceded a significant portion of its southern Indian containerised trade to Kattupalli Port, also managed by Adani. 

Meanwhile, the likelihood of port disruption comes as Indian exports are showing some signs of a rebound after recent downward trends. In October, the value of India’s exports swelled 17% year on year, boosting industry sentiment. 

“An impressive double-digit growth in merchandise exports amid continuing global economic uncertainties is definitely very encouraging,” said Ashwani Kumar, president of the Federation of Indian Export Organisations. 

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