Strike averted at major Indian ports after deal with workers' union

Members of the All India Ports and Dock Workers Federation signed a memorandum of understanding with the Indian Ports Association and the Ministry of Shipping to avert an indefinite strike across 12 major ports in the country from Aug. 28, according to a circular seen by S&P Global Commodity Insights.

The union had called for the strike to discuss a new wage agreement, demanding a 10.6% increase in wages, according to industry sources. It reached an agreement with the port association and the ministry late Aug. 27 for an 8.5% wage increase.

The MOU was reached between the Bipartite Wage Negotiation Committee, the Indian Ports Association and six federations of the port and dock workers of major Indian ports, the circular said.

"The fitment benefit of 8.5% on the aggregate amount of basic pay as on Dec. 31, 2021, plus 30% of VDA [variable dearness allowance] as on Jan. 1, 2022, shall be given," the circular said.

The Indian Ports Association did not immediately respond to Commodity Insights' request for comment on the matter.

Spot container freight rates in the region saw minimal impact in anticipation of the strike.

Platts assessed PCR 53 -- North Asia to the Indian subcontinent -- unchanged at $1,500/FEU on Aug. 27. TCR 53 -- North Asia to the Indian subcontinent -- was also assessed stable on the day, at $1,400/TEU. Platts is part of Commodity Insights.