sickle_s.gif (30476 bytes)    People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXV

No. 02

January 14, 2001


A Ritual Called The Pre-Budget Discussion

THE CITU’s general secretary Dr M K Pandhe and secretary Ardhendu Dakshi attended the meeting which the union finance minister Yashwant Sinha held with trade union leaders on January 5 for a pre-budget discussion. Its ostensible aim was to incorporate the labour’s viewpoint in the next budget. Representatives from all major central trade union organisations were present at the meeting.

The finance minister claimed that labour was his "first choice" for consultation as the labour-related matters have a bearing on all sectors of the economy. But when he elaborated his priorities, labour was nowhere to be seen. He mentioned his difficulties on account of the rise in international oil prices, stock market crash in the information technology sector worldwide, poor monsoon, etc. As usual, his emphasis was on downsizing the public sector industries and government establishments and on labour law "reforms." He also indulged in glib talk about the safety net for displaced workers.

Dr Pandhe of the CITU blasted the whole exercise as a mere ritual and an image building exercise. Last year, not a single suggestion made at a similar meeting was accepted. The finance minister did not even have time to attend to the labour-related matters in the last 12 months though he met employers’ representatives as a matter of routine. Pandhe also emphasised that the income tax exemption limit should be increased to Rs one lakh in view of inflation. He accused the government of lack of concern as it was liberalising imports even when the internal economy was slowing down. This would throw the economy out of gear and millions of workers out of job. The government talks of "swadeshi" and does just the opposite, he said.

Pandhe opposed the lowering down of interest rate on provident fund (PF) deposits to 11 per cent. Condemning the move, he demanded that the Central Board of PF Trustees be allowed to work independently and that the interest rate be restored to the earlier 12 per cent.

CITU leaders at the meeting castigated the government for being indulgent to employers in every respect. Bank loans of Rs 58,000 crore have not been paid by the corporate sector, under-invoicing and over-invoicing in export-import deals are costing the country about 4 billion dollars a year, and black economy has grown to 40 per cent of GDP as per an authentic study. Yet the government is unwilling to do anything about these white-collar criminals.

About labour law "reforms," CITU leaders said the reforms must be pro-labour and aim at improving the workers’ condition. They must not be for turning the workers into contract labour. Most of the benefits under different laws, like bonus, gratuity and PF, are not being paid. The so-called reforms of today are aimed only at depriving the workers and not at enforcing the laws in the workers’ interest.

Pandhe demanded that a white paper be brought out, detailing the so-called benefits of "reforms" in the last ten years which have seen a rise in unemployment and depreciation of the rupee (from Rs 19.50 a dollar in 1991 to Rs 46.75 in 2000). He said that before talking about downsizing the government offices and the PSUs, the prime minister must downsize his ministry by at least 10 per cent.

Dakshi mentioned that, in many states, High Courts are staying the minimum wage notifications once the employers move the court. This has made a farce of these notifications as the cases go on for years. Steps must be taken to stop it. He pointed out that PF membership is going down because enforcement has slackened. Lakhs of workers in the unorganised sector are being deprived of minimum wage and all statutory benefits as they are termed as "piece-rate" workers. Dakshi demanded that a legislation on social security benefits for unorganised workers and one for agricultural workers, both on Kerala model, be introduced in parliament immediately. Such laws must cover the home-based and Anganwadi workers also.

Almost all the central trade union leaders highlighted the workers’ plight in this era of "reforms" and asked the government to retrace its suicidal steps in order to save the domestic industry and labour. Some others, of course, agreed to cooperate with the government in its game of globalisation and liberalisation. (INN)

 

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