MoU Signed Between BWNC and Indian Port Association, Averting Indefinite Strike at Major Ports

The MoU addresses key issues, including the revision of the wage structure and other service conditions such as pensionary benefits.

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

The MoU addresses key issues, including the revision of the wage structure and other service conditions such as pensionary benefits. It was agreed that a fitment benefit of 8.5% on the aggregate basic pay as of December 31, 2021, plus 30% Variable Dearness Allowance (VDA) as of January 1, 2022, will be granted. The wage settlement is set for a period of five years, from January 1, 2022, to December 31, 2026, with the new pay scales effective from January 1, 2022, following existing practices.

Both parties also agreed to align future wage revisions for both officers and employees starting from January 1, 2027, to prevent potential anomalies. Additionally, a special allowance of Rs. 500 per month will be provided to working employees during the operative period of the settlement, until either December 31, 2026, or the employee's superannuation, whichever occurs first.

Expressing satisfaction with the agreement, Shri Sarbananda Sonowal stated, "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 fostering a harmonious and productive working environment across all Indian ports." He also praised both the workers' federations and the IPA for their constructive approach during the negotiations.

A drafting committee is scheduled to meet on August 28, 2024, to prepare the final settlement within ten days. This committee will include representatives from each federation and management representatives appointed by the Chairman of IPA. The final settlement is expected to be concluded within 15 days. In light of this development, the six federations have unanimously decided to defer the strike that was previously planned for August 28, 2024.

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