Visakhapatnam port has increased the levy rates on wages of workers from April 1. About 1,500 workers are engaged in cargo handling operations at the port.
“The port has increased the levy from 189 per cent to 250 per cent on Rs 1,000 per worker for an 8-hour shift from April 1. As a result, we have to spend about Rs 3,500 per worker for an 8-hour shift now. Moreover, from July the port plans to increase the levy further to 350 per cent, which will mean we have to spend Rs 4,500 per worker,” Krishna Kumar, president, Visakhapatnam Stevedores Association, said.
Vizag port supplies manpower to stevedores for loading and unloading activates. According to port sources, the cargo handling division of the port incurred a loss of about Rs 21.78 crore as at the end of March 2009. The hike in levy is aimed at avoiding further losses.
With this decision, manual cargo handling charges would increase 15 per cent, Krishna Kumar said, stating cargo handling expenditure would have increased 30-35 per cent due to the levy hike. But, since the port had reduced the manning scales by about 30 per cent, the overall handling expenditure was up only 15 per cent.
Earlier, a group comprised 12 workers, which the port has now reduced to 7-8. "We are getting the same productivity even with the reduced number of workers and, therefore, our wage bill has declined 30 per cent, but the overall cargo handling expenses have increased to 15 per cent because of the levy hike,” he said.
Apart from port workers, the stevedores association operates a private pool with 1,500 workers, for which it pays wages in the range of Rs 500 to Rs 600 per shift per worker.
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The port management and the stevedores association have also announced a voluntary retirement scheme for cargo handling workers.
“With mechanical operations gaining ground, the port will need only 1,500-2,000 workers in future. The stevedores association and the port together are planning to give VRS to 1,000-1,500 workers,” Krishna Kumar said.