Due to increasingly fierce competition among non-government cargo handlers led by the Adani Group, India’s major public ports are already facing growth pressure. After the government passes new legislation to reform the management system, the port will face new threats of shutdown.
The union representing the dock workers voted to hold an indefinite strike across the country on or after December 15 to fight for various demands, especially the negotiation of the new Major Port Authority Act.
A labor organization federation stated in a notice to the Port Authority: “According to the assurance of the management, it may take immediate action to discuss the rules of the bill with the recognized (labor) federation.” At the same time, the union is also seeking Negotiation of wage contract.
The new "Port Law" replaced the regulations promulgated in 1963. It aims to transform the landlord port into an independent company with greater functional autonomy and place it in "a freer and deregulated business environment for better Compete well with private small ports".
However, the union is concerned that these changes may lead to unemployment and privatization of port activities.
They demanded: "To revoke the government's anti-port and anti-labor decisions, and provide additional concessions to companies and PPP [public-private partnership]/BOT operators in major ports."
India has 12 major government-controlled ports, of which Ennour (now renamed Kamarajar/Kamarajar) near Chennai has been corporatized.
Gavalar Nehru Port Trust (Nhava Sheva) has a considerable share of India's container shipping business. Under the two-stage franchise granted by PSA International, the company is in the mid-stage of its 2.4 million TEU capacity expansion.
From a broader trade perspective, shippers are scrambling to find shipping capacity to take advantage of the resurgent market environment when the planned strike takes place. Therefore, any supply chain disruption may increase their difficulties and slow the growth of the number of ports.
