Indian port workers’ strike averted by last-minute deal
Nearly 20,00 workers at major Indian ports have agreed to a new five-year pay deal, only one day before their planned strike.
Negotiations since 2021
The workers’ union had intended to start an indefinite strike on Wednesday, August 28th. The threatened walk-out was a result of lengthy negotiations, failing to create a new agreement after their previous contract expired in 2021.
On Tuesday – one day before the strike – an agreement was reached between the Centre of Indian Trade Unions and the state-run India Ports Association. This deal includes an 8.5% wage increase over five years – just below the workers’ original demand of 10%.
Averts interruption to the global supply chain
According to Reuters, three of India’s largest ports – Chennai, Cochin, and Mumbai – handle a combined cargo capacity of 1.62 billion metric tons annually. With India being ranked among the world’s biggest exporters, a strike would have had a significant impact on global transport and shipping industries.
“The agreement averted further issues in an already-strained global supply chain, which is struggling with higher freight costs and congestion at major Asian and European ports,” notes Reuters.
Below you can see an example of the vessel traffic in Mumbai port. The screenshot is taken on August 29th.
.png)
