Recently, Indian port workers announced that they will launch strikes at major ports due to the government's failure to fulfill its commitments, causing concerns among Indian shippers that the supply chain may be severely disrupted.

Multiple trade unions have jointly informed port authorities that they plan to launch indefinite suspension protests in ports across the country starting from December 17th, with a focus on long-standing unresolved issues with the government.

The focus of this action is salary adjustment and pension benefits. The union accuses the Indian Ports Association (IPA) of showing a "cold" attitude towards the implementation of commitments made in previous negotiations. In early August, Indian dock workers threatened to go on strike indefinitely. The strike will affect multiple ports, including Cochin, Chennai, and Dutigolin. After negotiations between the port association and the union, the strike was avoided.

The Union Alliance stated that IPA should forward the contents of the negotiation agreement to various port management departments in accordance with established practices for implementation. It is unacceptable that two months after the agreement was signed, it has not been handed over to the relevant departments for execution

In preparation for the strike, the union plans to organize rallies at various ports on December 5th to further express their demands.

It is understood that one of the core controversies is the Productivity Reward Program (PLR), which requires approval from the federal government and can be traced back to 2021. The union stated that due to the lack of PLR implementation guidelines, retired employees at some ports have lost corresponding benefits.

The union representative stated, "Workers and retirees are deeply concerned about the failure to implement the agreement and are forced to take action to fight for their legitimate rights and interests

According to IPA sources, the approval order for the adjustment of port workers' wages needs to be issued by the Ministry of Shipping, but the approval process has been delayed.

Industry observers believe that the funding sources for additional government port expenditures, as well as the increasing market pressure faced by private port competition, may be the main reasons for delayed decision-making.

At present, there are 12 government controlled ports in India, but the Mundra Port managed by the Adani Group has surpassed the Navasheva Port to become the busiest container port in India. Similarly, the Chennai Port located in southern India has also split a large amount of its freight business to the Katupali Port, which is also operated by the Adani Group, due to competition.

It is reported that the possibility of a port strike is emerging at a time when India's export trade is showing signs of recovery. After a period of sluggishness, India's exports in October increased by 17% year-on-year, boosting industry confidence.

Ashwani Kumar, President of the Federation of Indian Export Organizations, said, "Achieving double-digit growth in exports amidst ongoing global economic uncertainty is undoubtedly encouraging news

However, if the strike action begins, it may have a serious impact on the recovery of India's supply chain and export trade.

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