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Over the past few months- and August of 2024, in particular- India has seen strikes and protest erupt across the country. These strikes, involving port workers, doctors, and farmers, have had significant adverse impact on both the national and global economies.
On August 27, the night before 20,000 major Indian port workers were set to go on an indefinite strike, government officials were able to broker a new five-year deal. After initially asking for a 10.6% increase, the union and workers came to terms on an 8.5% increase in pay over the next five years, finally ending the labor negotiations that have been in discussion since 2021.
This decision also helped to ease the strained global supply chain, which is already dealing with high freight costs and congestion at several major ports throughout Asia and Europe, which were in part due to the Houthi attacks continuing in the Red Sea.
This new deal allows six of the major port workers' unions in India to continue to operate at twelve of the largest ports in the country, which handle roughly 818 million tons of cargo a year. According to the Hindu Business Line, a strike at these ports would have an estimated loss of almost 15 million a day. With the strike averted, peak shipping season in India can continue. Especially considering an approaching holiday season in India, this marks a large break in the supply chain industry because India is the fifth largest exporter of apparel in the world, with companies like Welspun Living and Mufti leading the charge. Along with India gaining a new labor contract, Australia also was able to avoid a strike in one of its largest ports, helping to provide more relief in Southeast Asia’s supply chain.
However, additional strikes have racked the country and brought business and social processes to a halt. In late August, the Indian Medical Association, or IMA, went on strike to protest a lack of worker safety. With over a million doctors taking part in the demonstrations, medical services- from local clinics to large, private corporations such as RSV Hospital in Kolkata- have been "paralyzed entirely," primarily affecting poor patients who cross long distances for essential medical services.
As of August 12, the strike has suspended all non-emergent services, including outpatient departments, operation theaters, and ward duties, with an especially significant impact on elective services such as scheduled clinical anesthesia. As over 60% of doctors in India are women, doctors demand better security and working environments for female doctors. The IMA cites poor infrastructure and "a lack of safe spaces to rest" as the problem, and the proposed Central Protection Act would overhaul the working and living conditions for hospitals.
A few years prior, in 2020, thousands of farmers protested against proposed agricultural bills. In 2021, the farmer groups agreed to call off their strikes after the proposed laws were abandoned, and the government agreed to discuss guaranteed prices for produce. Now, protestors are back and alleging the government did not keep its promise. Looking for more guaranteed workdays and pensions, many protestors want India to withdraw from the World Trade Organization, which would have major trade implications. As one of the most important voting groups in India, farmers hold a large amount of power and influence, and their actions could lead to keystone changes in the country's farming and agricultural trade.
With so many important occupations going on strike, India and the world as a whole could see higher prices of medicine, clothes, and food. However, with both India and Australia coming to agreements with their port workers, there can hopefully be relief in shipping both across and beyond Southeast Asia.
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