The New Mangalore Port Trust (NMPT) has decided to stop the practice of ‘notional booking’ and ‘speed money’ paid to dock workers with effect from August 1.

Addressing presspersons in Mangaluru, MT Krishna Babu, Chairman of NMPT, said that the bilateral wage negotiation committee, headed by Chairman of Indian Ports’ Association, had a detailed discussions on such practices. All labour federations, irrespective of their affiliation, have agreed to stop this practice at all ports.

He had conducted a meeting with the unions at the NMPT two weeks ago, and gave labour leaders time till July 30 to convince their members.

Krishna Babu was addressing his maiden press conference on Tuesday after assuming charge as NMPT Chairman on July 1.

Babu said that such practices will not take the port anywhere in the long run. “I have convinced the unions. Everyone has agreed that they have to stop these practices if the port has to survive and get more cargo in the long run,” he said.

(Under the notional booking, compulsory booking of labour takes place even though there is no work. Under the speed money, payments are done on a per tonne basis even though that need not be done.)

He said such practices are impacting the port by ₹40-50 a tonne compared to any neighbouring port. Such practices that are more than three-decade-old are increasing the logistics cost. Once this is stopped, trade will save ₹40-50 a tonne.

The stakeholders of the port had raised this issue at their first meeting with Babu. He said the Parliamentary Committee on Finance had raised this issue during its recent visit to Mangaluru. The committee had also stated that local traders are feeling that the NMPT is becoming expensive because of such practices, he said.

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