Following recent port strikes in Germany and the looming threat of labour action in the United States, yet another country is on the brink of a dock workers’ protest, potentially dealing another blow to global supply chains.
We recently reported on a possible strike affecting ports along the Gulf of Mexico and the East Coast of the United States. If no agreement is reached with employers’ organisations, dozens of American ports could face closure on October 1.
However, the United States is not the only region at risk of port worker unrest. On the other side of the globe, in India, dockworkers could halt operations as early as next week. Six trade unions representing employees from the country’s 12 largest ports have given employers until August 28 to accept the terms of a new contract that includes substantial wage increases. According to media reports, up to 20,000 port workers may participate in the strike.
Three years without a contract
The unions’ demands echo those of dockworkers in other parts of the world – recognition for their hard work during the pandemic, which kept global supply chains running, and the need for fair compensation. Furthermore, the existing agreement between unions and employers covering contracts and working conditions in India’s port sector expired back in December 2021. Despite seven rounds of negotiations, no agreement has been reached.
Dockworkers are seeking wage increases, improved benefits, paid holidays, and productivity bonuses. Additionally, they demand that the agreement be retroactive, taking effect from January 2022, when the new contract was initially supposed to begin.
There is a possibility that the Indian government may step in to expedite a resolution. India has made significant investments in recent years to position itself as a global manufacturing hub and a leading exporter. According to The Maritime Executive, volumes handled at Indian ports increased by 4% in the first half of this year, with container traffic rising by 10% year-on-year.
Another strain on global supply chains
A strike at Indian ports would further exacerbate already strained global supply chains. European and Far Eastern ports are grappling with congestion due to extended shipping routes around Africa and the aftermath of recent typhoons in Asian waters. Additionally, the port in Ningbo, China, was recently closed for several days.
In the 12 months leading up to March 31, 2024, India exported goods worth $437.06 billion. According to World Bank data, the country ranked as the world’s tenth-largest exporter of goods and services in 2023.
India primarily exports petroleum products, diamonds and precious stones (it is the world’s largest exporter of diamonds), electronic equipment, machinery, automotive products (both vehicles and parts), and pharmaceutical products. The country is the third-largest exporter of pharmaceuticals by volume, focusing primarily on generics, and ranks 13th globally in terms of export value.
Photo: Ccmarathe, CC BY-SA 4.0, via Wikimedia Commons