Shipping ministry approves wage structure revision for workers of major ports

New Delhi: The Ministry of Ports, Shipping and Waterways has approved wage structure revision for workers at major ports, an official statement said on Wednesday.

According to the statement, 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.

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The MoU facilitates the revision of the wage structure and addresses other service conditions, including pensionary benefits, it added.

It was also agreed that the fitment benefit of 8.5 per cent on the aggregate amount of basic pay as of December 31, 2021, plus 30 per cent VDA (variable dearness allowance) as of January 1, 2022, will be granted.

"The periodicity of the settlement is set for five years, from January 1, 2022, to December 31, 2026.

"The new pay scales, effective from January 1, 2022, will be formulated according to existing practices," the statement said.

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

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

Ports, Shipping and Waterways Minister Sarbananda Sonowal said the timely resolution of these issues reflects MoPSWs commitment to fostering a harmonious and productive working environment across all Indian ports.

A draft committee meeting, scheduled to convene on August 28, 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 IPA Chairman.

"The management assured that the BWNC proceedings will be concluded, with the final settlement reached within 15 days, " the statement said, adding that considering this development, the six federations have unanimously decided to defer the strike previously planned for August 28, 2024.

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

The six federations 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.

Port and dock workers' unions of major ports on Tuesday had deferred their indefinite strike proposed from Wednesday.

The decision came after an agreement between representatives of workers' unions and ports management on workers' demands at a marathon meeting in the national capital on Tuesday.

The shipping ministry set up a Bipartite Wage Negotiations Committee, comprising representatives of port management and federations in March 2021.

The committee was headed by Mumbai Port Authority Chairman Rajeev Jalota.

Though the Bipartite Wage Negotiations Committee met seven times during the past 32 months, it could not reach an agreement with the federations.

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