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India stands firm as wave of strikes spread

NEW DELHI: The Indian government faced three separate labour disputes on Friday, including a nation-wide dock strike and a stoppage by power workers in the country's most populous state.

Adding to the difficulties, on Friday commercial transporters in New Delhi began an indefinite strike to protest against a new entry tax on vehicles entering the capital.

The port strike, now in its fourth day, crippled cargo movement in all 11 of India's major ports and a strike against power reforms dragged on in Uttar Pradesh state.

The government acknowledged that the labour disputes were affecting the economy, but put no price tag on the disruption.

Finance Minister Yashwant Sinha told Reuters: "I won't be able to give you a figure but it is quite obvious they (the strikes) are affecting us adversely."

Asked whether the strikes had weakened the federal government's resolve to pursue economic reforms, Sinha said: "Not my resolve, no. We will expect the necessary reforms to be carried forward. All issues will be tackled, all issues."

Cargo movement has been disrupted in all major ports and the government has called in the navy and the paramilitary territorial army to handle key positions.

In New Delhi, Surface Transport Secretary R. Vasudevan said cargo operations at ports were being carried out at about 70 percent of normal volumes.

An estimated 100,000 employees of the federal government-run ports are demanding a doubling of their wages and have rejected a government offer of a 28 percent increase.

Millions have been without power since workers in Uttar Pradesh state have gone on strike to protest against converting the state electricity board (SEB) into a company, and breaking it into three entities for generation, transmission and distribution.

Discussions betweeen state government officials and power leaders late Thursday failed to resolve the seven-day-old strike.

"If the government refuses to rescind the notification restructuring the SEB, 83,000 power engineers across the country will observe a day's token strike from the midnight of January 23," Dubey told Reuters.

He said the All India Power Engineers Federation had given the government formal notice of a nationwide strike.

The stoppage has also spilled over into neighbouring Punjab, Haryana, Himachal Pradesh and Rajasthan states. But electricity supplies in these states have not been affected.

Minister Sinha said the strikes were wage-related and not against the economic reforms being scripted by his government.

The Confederation of Indian Industry lauded the government's resolve in tackling the strikes.

"Even if it (the resolve) means a short dislocation for industry, the long-term gains of standing firm will far outweigh the loss. It should stand firm against any kind of vested interest," said Director-General Tarun Das.-Reuters