At least 12 ports in India will remain open after a last ditch deal was struck. Credit: SamCreativeArts/Shutterstock

A last-minute deal brokered by the Centre of Indian Trade Unions and state-run India Ports Association has allowed industrial action to be called off thanks to a new wage deal. 

As many as 20,000 members of the Water Transport Workers’ Federation of India had threatened to strike after three years of negotiating failed to produce a new agreement. 

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The indefinite strike, which could have lasted for weeks or months, sparked fears across the transport and shipping industries due to its size and timing. Last week it was feared unconnected actions in North America could coincide with an Indian ports strike to paralyse large portions of global trade. 

But a new five-year deal has alleviated such fears (along with government action in Canada, restoring freight rail services) with workers to be paid 8.5% more over the duration of the agreement. That will represent a win for the Water Transport Workers’ Federation, who had asked for a 10% uplift until talks broke down. 

All 12 major sea ports in India were threatened by the action and will implement the deal for longshoremen and tug operators. 

Water Transport Workers’ Federation leader T. Narendra Rao told Indian media the “lethargic and cruel” negotiating practices caused the lengthy delay. If strike action was taken at the 12 ports, Rao said it would have held up 2.3 million tonnes of cargo each day in continued. 

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“Considering the … understanding, the six federations agreed to defer the proposed strike,” said the document signed by union leaders and seen by Reuters news agency.