The Indian Ports Association (IPA) signed a memorandum of understanding with the Bipartite Wage Negotiation Committee (BWNC) on Wednesday, averting an indefinite strike by workers that would have disrupted operations at 12 major ports across India from 28 August.
The MoU facilitates a revision of the workers’ wage structure and addresses other service conditions, including pension benefits. It was agreed that the fitment benefit of 8.5% would be granted on the aggregate amount of basic pay as of 31 December 2021, plus 30% variable dearness allowance as of 1 January 2022.
The period of the settlement is set for five years, from 1 January 2022 to 31 December 2026. The new pay scales, effective retrospectively from 1 January 2022, will be formulated according to existing practices.
Both parties also agreed to consider aligning the periodicity of future wage revisions for both officers and employees, starting from 1 January 2027, to avoid any potential anomalies. A special allowance of ₹500 a month will also be provided to working employees during the course of the settlement or until the date of the employee’s superannuation, whichever comes first.
Sarbananda Sonowal, minister of ports, shipping & waterways, said, “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 [the ministry’s] commitment to foster a harmonious and productive working environment across all Indian ports.” Sonowal also commended the workers federations and the IPA for their constructive approach to these negotiations.
A drafting committee meeting, scheduled to convene on 28 August, will prepare the settlement within 10 days. This committee will include a representative from each federation, as well as management representatives appointed by the chairman of IPA.
Management assured that the BWNC proceedings would be concluded quickly, with a final settlement in 15 days. Following this development, the six federations unanimously decided to defer the strike.
