India's Major Ports Workers to See Wage Structure Revision

The Ministry of Ports, Shipping and Waterways has approved a revised wage structure for workers at 12 major ports, benefiting around 20,000 permanent employees. This decision follows a memorandum of understanding (MoU) between the Bipartite Wage Negotiation Committee (BWNC) and the Indian Port Association (IPA).

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Key Details of the Wage Revision

According to the MoU, a fitment benefit of 8.5% on the aggregate amount of basic pay as of December 31, 2021, plus a 30% variable dearness allowance (VDA) as of January 1, 2022, will be provided. The new pay scales will be effective from January 1, 2022, and will follow existing practices.

The ministry's statement highlighted that the MoU not only revises the wage structure but also addresses other service conditions, including pensionary benefits. "The Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal approves for Wage Structure Revision for Workers of Major Ports," the statement read.

Strike Deferred Following Agreement

Port and dock workers' unions had planned an indefinite strike but deferred it after reaching an agreement with port management representatives during a marathon meeting in the national capital. The six federations involved expressed their appreciation to Sonowal for his timely intervention and continuous guidance in resolving the wage negotiation issues.

A special allowance of Rs 500 per month will be provided to working employees during the settlement period from January 1, 2022, until December 31, 2026, or until the employee’s superannuation date, whichever is earlier. The periodicity of this settlement is set for five years.

Future Wage Revisions

Both parties have agreed to align future wage revisions for officers and employees starting from January 1, 2027. This alignment aims to avoid any potential anomalies in future negotiations. Additionally, a draft committee meeting is scheduled for August 28, 2024, to prepare the settlement within ten days.

The BWNC proceedings are expected to conclude with a final settlement within 15 days. The six federations have unanimously decided to defer their previously planned strike for August 28, 2024.

Committee Formation and Meetings

The shipping ministry established the BWNC in March 2021 to include representatives from port management and federations. The committee is chaired by Mumbai Port Authority Chairman Rajeev Jalota. Despite meeting seven times over the past 32 months, an agreement with the federations was not reached until now.

In an official statement, Sonowal said that resolving these issues promptly demonstrates MoPSW's commitment to fostering a harmonious and productive working environment across all Indian ports.

The six federations involved are 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.

This development marks a significant step towards improving working conditions for port and dock workers across India's major ports.