People's Democracy

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


Vol. XXVIII

No. 36

September 05, 2004

Mumbai Convention Demands End To PSU Privatisation

  P R Krishnan

 

UNLIKE the meetings and conferences on academic issues, educational problems, and national and international affairs, the prestigious Mumbai University Convocation Hall in South Mumbai was this time the venue for a convention of a different nature. Organised by the Public Sector Employees Coordination Committee on August 21, this was a 600 strong convention of workers and trade union functionaries of different public sector industries, organised to discuss the problems facing the working class and the dangers posed to national economy as a result of the government’s drive to privatise the key public sector undertakings in aviation, telecom, insurance, railways, seaports, shipping, bank, oil and other vital sectors of economy. And while scholars, experts and educationists are the usual participants in the Convocation Hall meetings, the participants and audience this time were employees from banks, shipping, airlines, airports, seaports and defence establishments, state and central government employees, and workers from different industries.

 

While the speech by CITU president Dr M K Pandhe was heard with pin drop silence, the audience also listened to the presentations made by representatives from different industries, explaining the problems prevailing in their respective sectors like railways, airports, shipping and seaports, banking, education, etc. In addition, there were papers presented on contract system and on the neo-judicial onslaughts against the working class rights. There was also a presentation on the sell-out of the Juhu Centaur Hotel in Mumbai and the consequent problems.

 

Inaugurating the fully packed convention of delegates, Pandhe dealt with the origin of the public sector industries in India, which began immediately after independence. He said the assets of the public sector undertakings belong to the people of this country and not to the capitalists who are now demanding disinvestment. Pandhe said the profits made by the public sector industries, in turn, helped the nation attain economic self-reliance in a big way. Pandhe pointed out that it is these valuable assets which the industrialists want to grab. In this process the domestic industrial lobby is also helping the multinational corporations to have control over the national economy. This anti-national and unpatriotic game must be resisted tooth and nail by all the patriotic people. He said the working class and the Left movement had to wage long and arduous struggles to get industries established in key sectors like cement, coal, etc, and for nationalisation of private companies in airports, banks and insurance. Pandhe said if the working class unitedly opposes privatisation, the government’s attempts can effectively be thwarted. He therefore appealed for widening the working class unity, irrespective of political differences and ideological barriers. Congratulating the convention’s organisers, he hoped the working class movement in Mumbai would regain, through unity and struggle, the same glory as was witnessed during the freedom struggle in colonial days.

 

A presidium comprising trade union leaders P R Menon (railways), Naresh Birwadkar (shipping) and R Ramanathan (civil aviation) conducted the proceedings, while the convenor of Public Sector Employees Coordination Committee welcomed the gathering. Leaders of central trade union organisations, viz, Sukumar Damle (AITUC), Dada Samant (Kamgar Aghadi) and K L Bajaj (CITU) greeted the convention. Moved by P R Krishnan, the convention passed a resolution demanding state and central government intervention in the then ongoing truck and tempo strike. Through another resolution moved by Bhooshan Patil, the convention extended support to the bank employees who were to go on a one-day strike on August 24 for settlement of their demands.

 

The convention had before it 8 papers highlighting issues in different public sector undertakings. S K Bose (assistant general secretary of the National Railways Mazdoor Union) presented the paper on railway; George Abraham (general secretary, Air India Employees Guild) on civil aviation, P N Subramanian on banking industry, S C Bhagat on seamen’s issues; and Professor Madhu Paranjpe on education. On contract labour system, it was Dr Vivek Monteiro, convenor of the Contract Padhat Virodhi Manch, who presented the paper. Kiran Pulekar spoke on shipping industry and Bhooshan Patil on issues surfacing in seaports.

 

Thus the convention took note of the presentations made by the NRMU, by the unions engaged in civil aviation sector, particularly Airport Authority and Air India, by the unions in shipping sector, particularly Forward Seamen Unions and Shipping Corporation Staff Union, by the unions in seaports, insurance and banking sectors, by the Bombay University & College Teachers Union, and also taking note of paper presented on contract labour by Dr Vivek Moneterio and the paper on the neo-judicial onslaught on working class rights by CITU Maharashtra state secretary P R Krishnan.

 

One of the papers dealt with how deceptive was the sell-out of Juhu Centaur Hotel in Mumbai and the role of Shiv Sena led union in agreeing to the VRS arrangement. Also, the paper presented by P R Krishnan at the convention dealt with the anti-people trend that has begun to surface in the legal system, particularly at the level of the High Courts and Supreme Court.

 

Thus the convention strongly believed that public sector undertakings are facing increasing attacks in forms like of privatisation, disinvestment, distortion of industrial laws, and growing contractisation and casualisation. Simultaneously, public sector units are being weakened and destablised by shifting the productive and operational activities to private sector as is now rampant in the railways, insurance sector, shipping and banking and other fields. All this will adversely affect the people’s jobs and income, cause deterioration in service to the public, and expose the public to greater risks and health hazards as is the case in railways. The engagement of contract labour in manufacturing activities of the public sector undertakings has worsened the situation, particularly due to non-infusion of capital for modernisation and expansion.

 

The convention was concerned that the disinvestment and privatisation of the airports, seaports and shipping have serous implications for national security. The experience of independent India clearly shows that these sectors were required to assist military in operations during the wars. The convention also noted with shock the increasing privatisation of entire education system and contracting out of jobs while the private sector educational institutions are turning more and more commercial, reserving professional education to the highest income groups in society and thereby denying to a large section of people the educational opportunities as are guaranteed in the constitution of India.

 

The convention took note of the struggles of public sector unions in the oil sector, supported by all sections of the working class, which succeeded in defeating the move to privatise the HPCL and BPCL. The convention welcomed the dismantling of the ministry of disinvestment, but expressed determined opposition to the continued efforts to privatise the airports and other profit making public sector undertakings by the UPA government, in violation of its own CMP.

 

The convention expressed concerned that under the new, UPS dispensation the process is being pushed further ahead, despite the stark reality that in developing countries such privatisation and disinvestment have enabled the multinational corporations in takeover of the financial sector and services, and pushing these countries themselves into a deep financial and monetary crisis. The convention was convinced that the policy of persisting with privatisation and disinvestment would lead to the foreign multinationals’ iron grip over vital sectors of our economy, signs of which are already in ample evidence in the banking, insurance and in electronic communications. The convention therefore called for reverse steps.

 

The convention resolved to take steps to expand and further strengthen the resistance to privatisation, disinvestment and contract system, and hold programme throughout Maharashtra, involving all public sector employees.

 

The convention took serious note that of late the judiciary is delivering such judgements on labour issues and rights as bolster the anti-labour policies of the government. This was seen particularly in the court judgement regarding the strike by Tamilnadu government employees and in the judgement on contract labour. These verdicts swept under the carpet a large number of earlier judgements that upheld the workers’ right to strike and held that contract labour is nothing short of bonded labour. It is an irony that the act that was passed to abolish contract labour has now been transformed into an instrument to end regulated employment and collective bargaining and to expose the workforce to the hire and fire policy. In this context, the convention disapproved the anti-labour judgement of the courts and the policies pursued by the government. The convention therefore resolved to strengthen the movement of public sector employees and contract workers to fight these attacks and intensify the struggle against privatisation.

 

Presented by Dr Vivek Monteiro, the convention adopted a declaration highlighting the abovementioned issues and appealing for united struggles against disinvestment and privatisation of public sector industries. Smt Sangita Khalinar of Air Corporations Employees Union proposed a vote of thanks.