Ports Shipping and Logistics (Commonwealth Union) – In a significant development, a Memorandum of Understanding (MoU) was successfully signed between the Bipartite Wage Negotiation Committee (BWNC) and the Indian Port Association (IPA). This agreement came just in time to avert a potentially crippling indefinite strike that had been planned to disrupt operations at 12 major ports across India. The situation, which could have had far-reaching consequences for the country’s maritime industry and economy, was resolved through the timely and decisive intervention of the Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal. His leadership played a crucial role in facilitating the agreement, ensuring that port operations would continue without interruption, safeguarding the livelihoods of workers and the smooth functioning of India’s critical port infrastructure.
As ports and shipping plays a crucial role to the Indian economy and also a crucial component of international trade the deal with the Shipping Ministry, is likely to put both local international players of the industry at ease.
The Memorandum of Understanding (MoU) plays a crucial role in facilitating the revision of the wage structure and addressing various service conditions, including pensionary benefits. As part of the agreement, it was decided that a fitment benefit of 8.5 percent would be applied to the aggregate amount of basic pay as of December 31, 2021. This adjustment, coupled with an additional 30 percent Variable Dearness Allowance (VDA) as of January 1, 2022, will be granted to eligible employees. The duration of this settlement is established for a period of five years, spanning from January 1, 2022, to December 31, 2026. The new pay scales, which are retroactively effective from January 1, 2022, will be developed in accordance with existing practices and guidelines.
Furthermore, both parties have agreed to explore the possibility of synchronizing the periodicity of future wage revisions for both officers and employees. This consideration is intended to take effect starting January 1, 2027, with the aim of preventing any potential discrepancies or anomalies that could arise from differing revision timelines.
In addition to these provisions, a special allowance of Rs. 500 per month will be granted to all working employees throughout the operative period of the settlement. This allowance will be in effect from January 1, 2022, until December 31, 2026, or until the date of the employee’s retirement, whichever occurs earlier.
After the successful resolution was done, Shri Sarbananda Sonowal, Minister of Ports, Shipping & Waterways, expressed his views saying “This agreement marks a significant step forward in ensuring fair and equitable treatment for our port workers, who are the backbone of the Indian maritime sector. The timely resolution of these issues reflects MoPSWs commitment to foster a harmonious and productive working environment across all Indian ports.” The minister further commended the workers federations and the IPA as well for their constructive approach for the negotiations.
A drafting committee meeting has been set to take place on the 28th of August, 2024, with the specific task of preparing the settlement within a ten-day timeframe. This committee is set to consist of one representative from each of the 6 federations, together with management representatives who have been appointed by the Chairman of the Indian Ports Association (IPA). The management has provided assurance that the proceedings of the Bipartite Wage Negotiation Committee (BWNC) will be completed, and a final settlement will be reached within a period of 15 days.
In light of this significant development, the six federations have unanimously decided to defer the strike that was previously planned for the 28th of this month. The federations have expressed their collective appreciation to Shri Sarbananda Sonowal for his timely intervention and ongoing guidance, which have been instrumental in steering the wage negotiations towards a resolution. His efforts have been acknowledged as crucial in bringing an end to what has been a prolonged and challenging negotiation process.
