In a breakthrough, a Memorandum of Understanding (MoU) was signed between the Bipartite Wage Negotiation Committee (BWNC) and the Indian Port Association (IPA), averting an indefinite strike that was set to disrupt operations across 12 major ports in India, through the timely intervention of the Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal.

The MoU facilitates the revision of the wage structure and addresses other service conditions, including pensionary benefits. It was agreed that the fitment benefit of 8.5% on the aggregate amount of basic pay as of 31-12-2021, plus 30% VDA as of 1-1-2022, shall be granted. The periodicity of the settlement is set for five years, from 1-1-2022 to 31-12-2026. The new pay scales, effective from 1-1-2022, will be formulated according to existing practices.

Both parties agreed to consider aligning the periodicity of future wage revisions for both officers and employees, starting from 1-1-2027, to avoid any potential anomalies.

Additionally, a special allowance of Rs. 500 per month will be provided to working employees during the operative period of the settlement, from 1-1-2022 until 31-12-2026, or until the date of the employee’s superannuation, whichever comes first.

On the successful resolution, Shri 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 MoPSWs commitment to foster a harmonious and productive working environment across all Indian ports.” Shri Sonowal also commended both the workers federations and the IPA for their constructive approach to these negotiations.

A drafting committee meeting, scheduled to convene on 28-8-2024, will prepare the settlement within ten days. This committee will include one representative from each federation, as well as management representatives appointed by the Chairman of IPA. The management assured that the BWNC proceedings will be concluded, with the final settlement reached within 15 days. Considering this development, the six federations have unanimously decided to defer the strike previously planned for 28 August 2024.

The six federations also expressed their appreciation to Shri Sarbananda Sonowal for his timely intervention and continuous guidance in resolving the protracted wage negotiations.

*****

NB/AK