Indian ports have averted a strike as dockworkers agreed to a new five-year contract Tuesday. The strike, initially planned for Wednesday morning, was called off after the All India Port Workers’ Federation reached a memorandum of understanding with the Indian Ports Association (IPA) and the country’s Bipartite Wage Negotiation Committee. Under the newly agreed terms, the unions accepted an 8.5 percent wage increase over five years, backdated to Jan. 1, 2022. Additionally, workers will get 30 percent variable dearness allowance, which is a cost-of-living adjustment to employees as a fixed percentage of their basic salary to mitigate impacts of inflation. The contract will expire Dec. 31, 2026. Additionally, a special allowance of 500 rupees ($5.95) per month will be provided to working employees during the contract’s duration. “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,” said Shri Sarbananda Sonowal, India’s Minister of Ports, Shipping and Waterways, in a statement. “The timely resolution of these issues reflects the ministry’s commitment to foster a harmonious and productive working environment across all Indian ports.” Sonowal is said to have intervened in the talks to ensure the agreement occurred before a strike took place.   The major 12 ports handled 818 million tons of cargo in the year through March, a 4.4 percent increase over the prior year, according to the shipping ministry. Inbound and outbound cargo makes up 77.1 percent of total containers at the port. Beyond avoiding a potential bottleneck of goods exported out of India, the new contract helps avoid more global congestion at major ports, particularly in Southeast Asia. A strike would have resulted in more blank sailings at Indian ports, forcing shippers to divert goods elsewhere at already clogged hubs. Additionally, ships that would have idled around the Indian ports would inevitably end up arriving off-schedule when they reached other ports, ultimately causing more delays. (ICE NEW YORK)

Fonte notizia: SJ