Almost 20,000 workers at major Indian ports, who had planned an indefinite strike starting Wednesday, cancelled their walkout late on Tuesday after securing a new five-year agreement, Reuters reported.

This deal helped prevent further complications in the already strained global supply chain, which is grappling with rising freight costs and congestion at key Asian and European ports.

The workers’ unions consented to an 8.5% salary increase over the five years, as detailed in a document signed by union leaders and reviewed by Reuters. This follows their initial demand for a raise of approximately 10.6%.

In March 2021, the shipping ministry established a bipartite wage negotiation committee. The workers presented their demands six months later, before the expiration of the previous agreement in December of that year, according to another document reviewed by Reuters.

The committee and India’s top port authority reached a resolution with the unions, who had been engaged in “prolonged discussions” over pay revisions and pension benefits in New Delhi.

Earlier, the workers had decided to call for a strike following a meeting in Thoothukudi, a port city in the southern state of Tamil Nadu.

Almost 20,000 workers at major Indian ports, who had planned an indefinite strike starting Wednesday, cancelled their walkout late on Tuesday after securing a new five-year agreement, Reuters reported.

This deal helped prevent further complications in the already strained global supply chain, which is grappling with rising freight costs and congestion at key Asian and European ports.

The workers’ unions consented to an 8.5% salary increase over the five years, as detailed in a document signed by union leaders and reviewed by Reuters. This follows their initial demand for a raise of approximately 10.6%.

In March 2021, the shipping ministry established a bipartite wage negotiation committee. The workers presented their demands six months later, before the expiration of the previous agreement in December of that year, according to another document reviewed by Reuters.

The committee and India’s top port authority reached a resolution with the unions, who had been engaged in “prolonged discussions” over pay revisions and pension benefits in New Delhi.

Earlier, the workers had decided to call for a strike following a meeting in Thoothukudi, a port city in the southern state of Tamil Nadu.