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Tuesday, January 25, 2000

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Only a breather

THE FIVE-DAY strike by port and dock workers in the 11 major ports across the country may have been called off, but the two core problems they raised have not been resolved. In that sense, the Government has only bought more time to address the issues and a March 31 deadline has been set to find a solution. As a sop to the striking workers, the Minister of Surface Transport, Mr. Rajnath Singh, has offered a couple of monetary concessions. The existing ceiling on the House Rent Allowance (HRA) has been increased and the port employees have been given a choice between the rates offered to Government employees or the new HRA. Instead of granting them a City Compensatory Allowance (CCA), which was abolished, the Centre has extended a port allowance in three slabs, depending on the location of the port. And, without victimising the employees who struck work, their absence last week would be adjusted against leave. The two major demands - periodicity of wage revision and retrospective effect for the HRA from January 1998 - will be considered with ``full sympathy and strength'' and the Minister would himself take them up at the Cabinet as it will impinge on the whole army of Government and public sector employees.

For the present, the strike has been withdrawn and work has resumed at the ports. This should come as a major relief to the importers and exporters, who are working to tough schedules for the last quarter of the fiscal year. Export commitments have to be met and it will take a while to clear the congestion in the ports during the week-long holdup in operations. In this context, the move to refer the question of efficiency or productivity for adjudication as part of this interim settlement should provide some hope. Ultimately, it all boils down to the individual's efficiency and the productivity of the port as a unit. Instead of dealing with the old formula of overtime and letting employees while away their precious hours of work and doing their job only in overtime to earn more, it may be worthwhile linking the port allowance or one by any other name to the employee's productivity. That will not only encourage them to improve their efficiency, but also enhance the overall performance of the port. Given the resource and capacity limitations of the ports, improving their efficiency seems to be the best way out of the present state of stagnation. With better equipment in place and computerisation the employees must be able to substantially improve their output.

It is unfortunate that both the trade unions and the Government do not learn their lessons from previous strikes. If the unions are satisfied in getting a few hundred rupees more for their employees after each strike, they are certainly not addressing the basic issues at stake. And if the Government can act in time and prevent a strike, it gains so much more than by letting the employees go on strike and hurting the economy. For instance, the last bipartite wage settlement expired on December 31, 1997, which is why the workers want the benefits with retrospective effect from January 1998. The least the Government can do is to begin negotiations in time and ensure a smooth switchover to a new agreement. The employees must also realise the financial strains of the Centre and the mounting fiscal deficit. How can the Government afford to meet a hefty wage increase, when it is already reeling under the impact of the Fifth Pay Commission? The options are limited - increasing revenue through better performance, seeking a compromise on the wage increases or going ahead with privatisation. Even as the Centre mulls over the demands placed by the port workers, it must view the entire problem in the ports to take a holistic approach and find a solution. Stumbling from one problem or strike to another will not help.

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