PSA SICAL Workers End Strike After Settlement Agreement Over Terminal Closure
Workers at PSA SICAL Terminals Ltd have called off their indefinite strike after reaching a settlement agreement with management, following a prolonged industrial dispute. The agreement, which was signed on Wednesday, also confirmed that the terminal, located in one of India’s major ports, will cease operations on February 28, 2025—three years ahead of its originally agreed contract, which was due to end in 2028.
The dispute, which led to the strike, arose when the terminal informed its workers that it would be closing its operations earlier than expected due to declining business and revenue. The closure stems from a series of challenges, including alleged discrimination by the V O C Port Authority, which had been providing a lesser draft at PSA SICAL’s berth, making it less competitive compared to other terminals at the port. The terminal’s performance has suffered as a result, significantly reducing its business and revenue streams, leading to the decision to shut down operations.
In an official notice sent to workers on February 1, PSA SICAL explained the closure and the reasoning behind it. The notice highlighted the company’s ongoing struggles with the Port Authority’s alleged discriminatory actions, which had been adjudicated by an arbitration panel. Despite these challenges, the notice also confirmed that as part of an ongoing arbitration process, the Port Authority had agreed to take over the terminal’s operations. A survey and evaluation of the assets were completed in September 2024, paving the way for the closure of PSA SICAL’s terminal. The management also outlined the legal requirements for terminating employees, as per Section 25FFA of the Industrial Disputes Act, 1947, and Section 25FFF of the same Act. This meant that workers were to be given one month’s notice and appropriate compensation for the termination of their services. In response, the workers at PSA SICAL went on an indefinite strike, demanding fair treatment and adequate compensation. The resolution of this strike came in the form of a settlement agreement between the Union and the management. Under the terms of the agreement, approximately 100 workers will receive a 20% wage increase, effective from April 1, 2024. Additionally, each worker will be given a lump sum payment of ₹4 lakh, along with one year of medical insurance.
For workers who have been with PSA SICAL since its inception in 1998, the closure and termination were a difficult blow. Many of them have invested decades of service in the terminal, contributing to its growth and operations. The settlement agreement, while bringing an end to the strike, provides a measure of financial support and compensation for these long-serving employees. The closure of PSA SICAL’s terminal marks a significant turning point in India’s port operations. As the second oldest private container terminal at a state-owned major port, the terminal’s shutdown will have ripple effects on the local economy and the wider shipping industry. Despite the challenges, the settlement is a step towards resolving the dispute and ensuring that workers receive due compensation as they transition out of employment. As PSA SICAL prepares for the final closure in February 2025, the agreement represents a bittersweet end to an era of operations. It highlights the ongoing challenges within India’s port and terminal sectors, especially in the face of external factors such as port authority decisions and shifting business dynamics.
