Update: Strikes in India averted after successful negotiations

Update: Strikes in India averted after successful negotiations

Operations at ports are expected to continue without disruption

by Manal Barakat, SeaNewsEditor


Update: 28.08.2024


Kuehne+Nagel reports that the meeting held yesterday between port association and the unions managed to avert the strikes.


The successful negotiations have been attributed to an intervention by the Ministry of Shipping.


According to sources, the two sides have negotiated a Memorandum of Understanding and have agreed to reach an amicable settlement.


All port activities at major Indian ports are expected to proceed as usual.


Original article: 27.08.2024


According to the latest local news, plans for an indefinite port strike in India starting at 6:00 local time on 28 August remain unchanged.


However, India Times reports that a meeting will be held today to discuss ways to avert disruptions at ports.


The current agreement, signed on 30 August 2018, expired in December 2021. Union leaders criticised the ports association’s approach, emphasising the long wait for a new contract.


Narendra Rao, General Secretary of the Water Transport Workers' Federation of India, one of the four associations that called for a walkout, said that the revised agreement ought to have gone into force on 1 January 2022.


Local newspaper The Hindu Business Line reports that the strikes could cause a daily loss of ₹125 crore (nearly USD 14.8 million) and cause major supply chain disruptions.


So far, four unions have announced that they are joining the strikes, which involve the ports of Cochin, Chennai, Vizag, Goa, Kandla, and Tuticorin. Port activities that are likely to be affected are tugboat and stevedoring operations.


It is important to note that container terminals affiliated with private operating companies may not join the strike. Only members of the participating unions are expected to walk out tomorrow. Nevertheless, the situation remains fluid and is still expected to have a significant impact.


India has 12 major ports that employ around 20,000 permanent workers. The strike will exacerbate the trade's current problems caused by the Red Sea situation, resulting in supply chain problems.


Kuehne+Nagel continues to monitor the situation closely. For more information, do not hesitate to contact your local representative.

Source: Maritime Executive, India Times, The Hindu Business Line, Kuehne+Nagel