Shipping minister GK Vasan has invited labour unions of major ports for bilateral discussions on corporatisation on June 23 lest workers stage a strike. Trade unions have threatened strike if the corporatisation plan is not abolished immediately.

Vasan rejected a draft Cabinet note on corporatising the Jawaharlal Nehru Port Trust (JNPT) early this week, seeking inputs from labour unions. In this draft, it was proposed to dole out bonus to supporting workers, while forcing those in opposition to take voluntary retirement scheme (VRS). However, trade unions were not consulted while preparing the draft.

Officials have started the process of drafting the Cabinet note afresh. ?We are now going to consult labour unions,? shipping secretary K Mohandas told FE. The meeting is likely to be attended by Mohandas, Indian Ports? Association managing director A J Rao, officials from JNPT management and representatives of five trade unions, including the All-India Port & Dock Workers? Federation, All-India Trade Union Congress, Centre of Indian Trade Unions and Indian National Trade Union Congress.

The government has been trying to convert JNPT into a company with an independent board since 2007, but the proposal faced fierce opposition from workers. JNPT is the third largest Indian port in traffic volume and the shipping ministry wants to corporatise it by the end of this year.

Corporatisation will allow the port to have an independent board to take financial and management decisions.

Currently, all major ports, barring Ennore Port, are run as trusts and have to approach the government for every decision. The port can also raise funds from the market.

?JNPT has the size of a Mini-Ratna PSU and can be an attractive investment option. But being a trust, it cannot go to the market at present,? a senior official in the ministry said.

All-India Port & Dock Workers Federation?s general secretary P M Mohammed Haneef said, ?What kind of autonomy is the government talking about? Under the Major Port Trust Act, the management is currently free to decide on day-to-day operations, but it is not allowed to exercise the power.?

?Does Ennore Port, which is the only corporastised port, have the autonomy to take decisions?? he asked. All-India Port & Dock Workers Federation represents 48% of workers at major ports.

Haneef claimed that at a meeting with chief labour commissioner NK Prasad in New Delhi in April, the government had promised that it would keep labour unions informed about the movement on corporatisation.

?The practice is contrary to the assurances,? he added.

Ennore Port was incorporated as a company in 2001. Since then, the government is keen to gradually corporatise all major ports.

There are 13 major ports at present, including Ennore. JNPT and Haldia Dock Complex are in the priority list of the shipping ministry.