Exporters Relieved as Port Strike Deferred

New Delhi, Aug 27 (PTI) Exporters on Tuesday hailed the announcement of port and dock workers' unions of major ports to defer their indefinite strike proposed from Wednesday as it could have impacted the country's outbound shipments.

They said the exporting community was already facing issues because of the Red Sea crisis, which has led to jump in freight rates and inadequate availability of containers.

"We were very worried about the strike as it could have seriously impacted our outbound shipments for Christmas and New Year. Now we are feeling so relieved because of the deferment of the strike. We had approached the commerce ministry on the issue," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.

Sharing similar views, Chairman of the CII national committee on EXIM Sanjay Budhia said the announcement of the strike had created lot of uncertainty not only to exporters here but buyers across the globe.

"Particularly worrisome was the fact that if strike could have started from tomorrow as apprehended, being the crucial last few days of the month, entire monthly targets would have gone haywire," Budhia, who is also Managing Director of Patton Group, said.

Hand Tool Association of India Chairman S C Ralhan also said the exporting community is breathing a shy of relief following the announcement.

The decision of the strike deferment came after an agreement between representatives of workers' unions and ports management on workers' demands at a marathon meeting in the national capital on Tuesday.

At a national coordination committee meeting in Tuticorn (Tamil Nadu) on August 8, major port workers' unions affiliated to five federations decided to go on an indefinite strike from August 28 to press for immediate wage revision and other benefits, pending for nearly 32 months.

"The federations have agreed to postpone the proposed strike from August 28," a top port official said.

There are about 20,000 permanent port and dock workers employed over 12 major ports.

The workers' unions are affiliated to five federations -- All India Port and Dock Workers' Federation, All India Port and Dock Workers Federation (workers), Water Transport Workers Federation of India, Indian National Port and Dock Workers Federation and Port, Dock and Waterfront Workers Federation of India.

After remaining in the positive zone for three months, India's exports contracted 1.2 per cent to USD 33.98 billion in July, while the trade deficit widened to USD 23.5 billion.

Exports during April-July this fiscal surged 4.15 per cent to USD 144.12 billion, and imports grew 7.57 per cent to USD 229.7 billion.