Labour trouble at Delhi's cargo terminal resolved

The labour  trouble at Delhi airport's cargo terminal that had disrupted supplies of major white goods companies in the country, has been resolved. The unrest was a setback for these companies, especially amid the festival season sales across physical and online platforms.

Labourers employed by JAC Air Services have gone on 'Go Slow' since October 7, over wage issues. JAC has been contracted by Celebi Delhi Cargo Terminal Management, the India unit of the Turkish ground handling major.

Moneycontrol learns that the two sides have come to an agreement, with JAC Air Services agreeing to hike wages of the labourers.

“Despite the aviation industry being one of the most impacted by the COVID-19 pandemic situation, some outsourced contract employees have been demanding wage increase and bonus payments," said an official from Celebi Delhi Cargo Terminal Management, in response to Moneycontrol's query.

"Throughout the phases of complete shutdown of the economy, we have tried to protect the interest of all our employees and ensured continuity of wages. The company will continue to ensure that its customers and services are not disrupted”,  added the official.

That will be a respite for companies making products such as ovens, refrigerators and televisions as the labour trouble had delayed clearance of their consignments at the cargo terminal.

"The clearance had got delayed by at least six to seven days," a senior executive at one of the companies said.

"After the supply chain disruption that the sector earlier saw, and with shortage of sea containers, the airport has much greater importance than ever before. All the biggest electronics companies have been impacted," a top executive from the industry added.

The Delhi Airport handles nearly 30 percent of the country's air cargo.

The supply disruption came in the middle of the peak festival season, the busiest time of the year for these companies. This year, the season is particularly important for the companies who are hoping to make up for the losses during the lockdown period.

Already reports have surfaced of companies running out of stock due to supply constraints. Much of the shortage is seen in TV sets, ovens and dishwashers. While most of the retail chains are pushing for higher sales, online market places such as Amazon and Flipkart have also announced annual festival sales.

Supply disruption

Globally, white goods manufacturers are facing a shortage of critical parts as COVID-19 created havoc on supply chains.

In India, the stand off with China, a critical supplier for most of the parts, added to the problem. Shortly after the  border skirmish in June with China, the Customs department India had been closely scrutinising all imports to Mumbai and Chennai.

This had led to the cargo terminals at the bigger airports catering to higher volumes. In June, the Delhi airport handled 1,850 freighter aircraft, its highest ever for a month.

Earlier this year, there were signs of labour unrest at the cargo terminal. In April, says a report by PeoplesDispatch.com, labourers belonging to JAC Air Services had complained about unpaid dues.

The copy has been updated after the agreement between labourers and JAC Air Services