A major strike that threatened to disrupt India’s ports and further strain the global supply chain was averted on Tuesday after workers and unions agreed to a new five-year contract. The strike, which was set to involve nearly 20,000 workers across India’s largest ports, had been scheduled to begin on Wednesday.
The workers’ unions, which had initially pushed for a 10.6% pay raise, reached a compromise during negotiations in New Delhi, settling for an 8.5% increase over the next five years, according to a report from Reuters.
Negotiations for this new agreement had been ongoing since the previous labor contract expired in December 2021. This long-awaited resolution will help maintain the smooth flow of goods through India’s major ports, including Chennai, Cochin, and Mumbai, which handle an annual cargo volume of 1.62 billion metric tons.
India’s port system plays a critical role in the global supply chain, supporting a substantial portion of the country’s trade. For the fiscal year 2023-24, India has forecasted total exports to reach $776.68 billion, a slight increase from $776.4 billion in the previous fiscal year.
By reaching this agreement, both workers and port authorities have ensured that India’s ports can continue operating without disruption, providing stability for global trade and safeguarding the country’s economic growth.