The Business Bytes
New Delhi, August 28, 2024 (TBB Bureau): The Ministry of Ports, Shipping, and Waterways (MoPSW) has approved a wage structure revision for workers at India’s major ports, averting an indefinite strike that threatened to disrupt operations across 12 major ports in the country. This development follows the signing of a memorandum of understanding (MoU) between the Bipartite Wage Negotiation Committee (BWNC) and the Indian Port Association (IPA), the ministry announced on Wednesday.
The MoU not only facilitates the revision of the wage structure but also addresses other service conditions, including pensionary benefits, ensuring stability for the port workers. A key feature of the agreement is the provision of a fitment benefit of 8.5 percent on the aggregate amount of basic pay as of December 31, 2021, plus 30 percent Variable Dearness Allowance (VDA) as of January 1, 2022. The revised wage structure is set to be effective from January 1, 2022, and will remain in effect until December 31, 2026.
“The periodicity of the settlement has been set for five years, from January 1, 2022, to December 31, 2026, and the new pay scales will be formulated according to existing practices,” the ministry’s statement noted. The MoU also includes a special allowance of Rs 500 per month for working employees during the operative period of the settlement or until the date of the employee’s superannuation, whichever comes first.
Ports, Shipping, and Waterways Minister Sarbananda Sonowal praised the timely resolution, stating that it reflects MoPSW’s commitment to fostering a harmonious and productive working environment across all Indian ports. “The management assured that the BWNC proceedings will be concluded, with the final settlement reached within 15 days,” he added.
In a further move to align future revisions, both parties agreed to synchronize the periodicity of wage revisions for both officers and employees starting from January 1, 2027, to avoid potential anomalies.
The Ministry has also announced the formation of a draft committee, scheduled to meet on August 28, 2024, to finalize the settlement within ten days. This committee will include one representative from each federation and management representatives appointed by the IPA Chairman.
The decision to defer the planned strike was unanimously taken by six port workers’ federations after a marathon meeting between union representatives and port management in New Delhi. The federations involved include the All India Port and Dock Workers’ Federation, All India Port and Dock Workers Federation (Workers), Water Transport Workers Federation of India, Indian National Port and Dock Workers Federation, and Port, Dock and Waterfront Workers Federation of India.
The federations expressed appreciation to Minister Sonowal for his intervention and guidance in resolving the protracted wage negotiation. “The timely intervention of the Minister played a crucial role in resolving the deadlock and ensuring continued port operations,” a representative of one of the federations said.
The BWNC, headed by Mumbai Port Authority Chairman Rajeev Jalota, was constituted in March 2021 to address the wage concerns of port and dock workers. Despite holding seven meetings over the past 32 months, the committee had not reached an agreement with the federations until the recent MoU.
