The Indian Ports Association, the apex body representing all major ports, is talking tough with unions on wage revision for port and dock workers.
“Given a chance, the managements of ports are not much inclined to go in for a wage revision at this point of time unless fundamentals improve,” the Association told the unions.
However, a mandate given by the Union Government could be pursued with practical reality and arrive at a mutually beneficial wage settlement, it said. The tough talk was against the backdrop of poor performance by 13 major ports in the last three years. The five recognised unions representing over 60,000-plus workers had demanded a 60 per cent pay revision retrospectively from January 1. In the earlier revision valid for five years, the Union Government gave a 23 per cent hike in wages. This time, the deadlock continues between the unions and the Association.
Time for revamp
The Association, in a note on sectoral status of major ports circulated to unions said that due to global recession, the gross domestic product is forecast to be 5.5-6 per cent.
The export-import trade has also shown an unfavourable trend.
In the last two decades, the share of major ports has dropped to around 60 per cent from 90 per cent. The non-major ports developed by various State Governments have gained a market share of 40 per cent. There is an imminent need for major ports to develop strategies in terms of cost effectiveness, efficient, productivity, infrastructure expansion, mechanisation and hinterland connectivity lest the share of major ports go further down, the Association said.
The operating income of major ports increased by 25.74 per cent in the last five years from 2007-08 while operating expenditure rose by 51.37 per cent. The operating surplus declined by 8.02 per cent.
Union counter
Another matter of concern is that net surplus over five years has fallen drastically by 31.54 per cent. However, the expenditure on salary and wages of class III and IV employees (workers) during these years has gone up by 62.83 per cent, which is a substantial increase, the Association said.
However, T. Narendra Rao, General Secretary, Water Transport Workers’ Federation of India, which is part of the bipartite Wage Negotiation Committee, refuted the claims of the Association. “The wages were hardly 23-24 per cent in five years,” he said. On the performance front, too, the picture at major ports is unhealthy. The average turnaround time of all major ports was 4.47 days in 2011-12 as against 3.93 days during 2007-08. This reflects a decline in productivity.
Similarly, the average pre-berthing detention increased to 50.19 hours during 2011-12 against 37.66 hours in 2007-08. This is a matter of grave concern, says the Association. The average for a berth day output has gone up slightly by 10.34 per cent due to mechanisation.
“If you look at all the three parameters, productivity in the port sector has not gone up in any reasonable measure.
It is an appropriate time for major ports to gear themselves up to increase productivity and reduce cost, if they have to survive and retain market share,”IPA said.