The Hindu Business Line : CCTL workers' strike threat — Shippers worried about cargo pile-up

Frequent disruptions in work by workers at the Chennai Container Terminal are, the CCTL authorities claim, violations of the settlement and are causing deep concerns in the trade.

THE employees of Chennai Container Terminal Limited (CCTL) have threatened to go on strike from February 27 alleging that the management is adopting "unfair labour practice." This has brought into focus the issue of industrial relations at the private terminal.

For, since the terminal was handed over to P&O Ports, Australia, in August 2001 there have been more than ten instances of the workers resorting to strike. From August 2004, there have been five.

As the terminal's management and workers prepare for another stand-off, the port users are a worried lot. "Industrial relations are the weakest link in CCTL. You cannot run a private terminal like this," says a port user. "How can a private terminal operator have the luxury of getting away with such industrial relations? In the end it is only the terminal users, including thousands of small and big companies, that suffer and not the CCTL management or employees. And, for no fault, the trade needs to bear additional costs such as demurrage and congestion surcharge that follow after such strikes," he says, requesting not to be named.

What is of note is that during the last two-and-a-half years, there has been no major strike at the Chennai port. The government-run port is able to take care of its 10,000-plus employees, but the private operator is finding it difficult to handle around 300, point out port users.

No other private terminal in the country, including that at Tuticorin or the P&O-run Nhava Sheva Container Terminal, has seen so many agitations by workers, said the user.

According to a port source, the concession agreement signed between the Chennai Port Trust and CCTL for the terminal operation does not give the port trust chairman much power to intervene and take action if there is any problem in the terminal. This lacuna needs to be corrected, the source said.

Mr Ennarasu Karunesan, Chief Executive Officer, CCTL, says: "Most of these employees are below 25, and get carried away easily. There is no culture in the way the union here works and, for silly reasons, they stop operations, and ask for money or various benefits. We need to invent new ways to deal with industrial relations." He declined to give further details on the measures.

According to Mr Karunesan, after the CCT Employees Union issued the strike notice to the management on February 12, the productivity level at the terminal dropped by more than half, to less than ten moves an hour. The CCTL is contemplating various measures, including bringing outside workers, to counter the strike, he told Business Line.

According to CCTL, it has always taken care of its workmen well, and had granted its non-management staff a wage hike of 43 per cent in July 2004. This increase was unprecedented in the port and shipping industry. The wages were also restructured to include a performance-based incentive component in order to reward high performers and enable them to earn more money.

As per the provisions of a long-term settlement signed with the union in August 2004 before the Regional Labour Commissioner, the Union agreed not to resort to any go-slow or strike. However, it has blatantly violated the terms of the settlement by resorting to frequent disruptions in work on not less than six occasions, giving rise to uncertainty and deep concern in the trade, the CCTL said.

Last week, the Madras High Court granted an interim injunction restraining CCTL workmen from going on strike or indulging in a go-slow. The Court also permitted CCTL to bring in contractors/outside operators to keep the terminal at full operational capability. This is in recognition of the importance of keeping the public utility service operational in the trade interest, the company has said.

The current problem at CCTL started a couple of weeks ago when the management suspended four employees, including the CCTL Employees Union president and general-secretary, for disrupting a management meeting.

These employees, whose port entry passes have been withdrawn by the Chennai Port Trust, refused to submit to the disciplinary procedure necessary under the provisions of law and have instigated their co-workmen to "go slow " in operations.

In the wage settlement signed with the non-management staff in August 2004, employees have given an undertaking not to indulge in a strike or a go-slow. "Their present actions are in violation of the agreement and the go-slow is deemed an illegal strike," the CCTL says.

The union, on its side, alleges that the management is adopting "unfair labour practice," and is not allowing its management employees to join their union. The management also threatened those employees with dismissal if they joined the union. The union also wanted a good compensation package for the family of an employee who died recently, said a union official.

In a statement, the Federation of Indian Export Organisations (FIEO) Chairman, Mr A. Sakthivel, said that it has become a regular feature at CCTL for the staff/labour to resort to such strikes, which are totally bilateral and should be settled with the management of CCTL. Ever since the private sector started its operations, exporters were hopeful that there would be better productivity. However, during the last two years, the experience of exporters has been thoroughly frustrating.

The strike threat has come at a time when exporters are reeling under the appreciating rupee, which has affected their export margins. Exporters are also worried about the fate of their cargo that is piling up at various transhipment ports, including Colombo, Singapore and Port Klang. There are also issues such as delivery schedule, which exporters need to adhere to in terms of provision of letters of credit/contracts, Mr Sakthivel said.

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