Port managements are offering a 28 per cent increase over the current wage bill, while the federations representing the employees are demanding an increased hike, port sources told PTI.

For instance, at the class IV level, the federations have asked for a starting basic of Rs 4800 with the managements offering only Rs 3400. The existing scale of pay starts at Rs. 2010, going up to Rs 5640 at the end of the scale.

The management's argument is that the ports would not be able to sustain a higher wage level, as they anticipate a downward trend in traffic this year.

"The traffic forecast for this year is not encouraging,"a Mumbai port official, who participated in the meetings, said. Last year, the total traffic throughput in all the major ports was 251.88 million tonnes, the same level as the previousyear, while the projected traffic had been 305.86 mt.

Increase in port tariffs also would not be able to bridge the gap, sources said. For this year the Union surface transport ministry has brought down the traffic target to a more realistic 280 mt. According to the stand taken by the management, the periodicity should be ten years. The unions' argument is that no wage agreement has been valid for more than five years at a time.

The port managements want the compensatory allowance to be governed by the Rakesh Mohan committee report. The federations, however, want it to be fixed at ten per cent of the basic pay.

House rent allowance (HRA) would be given only to those who do not own a house, a management proposal to which the unions are not agreeable. They want to it to be payable across the board.

Sources said the next round of talks would be held on July 15 and 16 in new Delhi. Some more issues such as conveyance allowance, vehicle advance and housing advance would be discussed.

They have yet todiscuss the wage structure for the class III employees, sources said as the current round of talks have ended with negotiations for the class iv level.

The meeting was attended by the five port federations representing the employees, stevedores and chairmen of Jawaharlal Nehru, Mumbai, Goa, Calcutta, Paradip and Cochin ports, the managing director of Indian Ports Association and an officer on special duty (OSD), who has been appointed to look into wage-related issues of the employees.