People's Democracy

The Confederation of Indian Industries (CII) organised a seminar in co-operation with International Management Institute in New Delhi on November 24, 2005. M K Pandhe, president CITU was specially invited to speak in the seminar. Following is the text of the speech delivered by him in the seminar.

TRADE union movement in India is characterised today by several employers’ spokesmen and financial columnists as a hindrance in economic progress of the country. It is a wrong concept and this argument needs to be strongly repudiated. As a matter of fact the trade union movement believes that without faster economic development, the standard of living of the working class and the people of the country can not be improved. Without accelerating economic growth, employment generation cannot be improved.

What trade union movement is advocating in India is that mere economic growth does not lead to social advancement. Though India claims to be the second largest growing economy in the world, its record of human development is extremely below the mark. The United Nations’ Human Development Index ranks India at 127th position out of 175 in the list. The capitalists in India today do not take into account this aspect of economic development and trade unions today are fighting for the concept of economic growth with social justice.

STRUGGLE FOR NATIONAL INTERESTS

When the question of national interests are involved, the trade union movement is always at the forefront in defending them. When GATT was signed in Morocco by the government of India, trade unions demonstrated before parliament since Indian interests were ignored. When all major capitalist countries, including the US, did not sign it, what was the hurry for India to sign it? Later on, Murasoli Maran, the late former commerce minister, admitted in parliament that the interest of India was not taken proper care of in GATT. However, the employers’ organisations in India remained silent.

When advanced capitalist countries advocated linkage of labour standards (in the form of social clause) with international trade, the trade union movement in India strongly came forward to oppose it. And ultimately in a tripartite meeting, the government, employers’ organisations and trade unions unanimously opposed to link trade relations with labour standards since it was an attempt of the capitalists in advanced countries to restrict flow of goods from developing countries to developed countries.

The trade union movement in India has opposed foreign direct investment in sectors where it destroys our jobs and industry, does not bring new technology but only comes to compete with our industries and take over Indian companies with a bid to control our economy. That is why TUs opposed induction of FDI in retail trade since they destroy our small traders. All this is being done only to protect India’s self reliant development.

The World Bank and the IMF is keen to dismantle our public sector due to its significant contribution to make India self-reliant. The trade unions opposed all measures to kill our small-scale industry and traditional sector of economy which generates employment for the poor people of the country.

According to us, it is possible to chalk out an independent path of economic development in the present situation. However, the big business houses want to collaborate with the MNCs for their own gains, without due care of the overall national interest. Hence it is totally incorrect to say that trade unions today are a hindrance to economic development of the country.

The experience of the last 15 years of globalisation has not been properly reviewed in India. It might have given boost to Sensex but it has also increased the number of our farmers committing suicide. According to ILO, it has increased global inequality and poverty-levels in developing countries. The millennium objectives are not likely to be achieved even according to official reports.

It has been noted that globalisation generated cut-throat competition in the world to bring down the cost of production. According to us it is the labour cost that is being brought down. Hence, downsizing manpower and increasing the workload of the workers has become the main slogan of the industrial houses and even the government. It is hoped that as a result of this the working class and trade union movement will be marginalised. We have to protect the interests of the working class. Hence, the objective conditions for conflict are not created by the trade unions but by the employers. Therefore, mere raising of the question of strengthening and sustaining harmony cannot help without taking into consideration the objective realities of the situation.

Dr Venkatratnam in his presentation criticised the concept of class struggle and wanted a middle path of progress. But the question is who is creating the conditions of class conflict? As the employers are trying to protect their class interests, the working class is also taking steps to protect its class interests. Under these circumstances the improvement of industrial relations is possible only if objective conditions for it are created.

ATTACK ON TU RIGHTS

Take the example of what happened in Gurgaon against Honda workers recently. The crime of the workers was that they only formed a union. They did not even submit a charter of demands. However, all the leaders were thrown out of jobs and when they protested, 700 workers were injured in brutal lathicharge.

The previous speaker also mentioned about Ludhiana. In this case also, the unions which have completed all formalities of registration more than two years ago, were not granted registration due to the direct intervention of the state government at the instance of a leading industrialist.

In Ferozabad, UP, glass factory workers are forced to work 12 hours a day illegally but the state government refuses to implement the labour laws and resorted to lathicharge, firing and arrest of trade union leaders even under Goonda Act!

In Special Economic Zones, Export Processing Zones and IT sector, labour laws are not implemented and the governments are openly conniving at the violation of the labour laws. The MNCs do not allow unions to be formed and raise industrial disputes often. Can you expect industrial harmony in such a situation?

India has not ratified many core conventions of the ILO, including those relating to freedom of association and right of collective bargaining. If trade unions rights are properly protected, trade union movement can play an important role in economic development of India. What we oppose is a peace of graveyard. We only want establishment of proper industrial relations machinery to protect the interest of the workers in a developing economy. The conflict is coming only when the employers oppose this simple demand.

The Second National Labour Commission recommended changes in the labour laws which practically introduce a right of hire and fire of the employers and to freely engage contract labour in regular jobs at low wage rates. The MNCs have also demanded these changes in the name of labour market flexibility.

I, however, want to ask you which labour laws are implemented effectively despite our having 55 central laws. Downsizing of manpower goes on unabatedly while contract labour is being engaged even in the prohibited categories all over the country with the union labour ministry behaving like a silent spectator.

Despite the commitment given in the National Common Minimum Programme that trade unions will be consulted while making changes in labour laws, there has been no serious consultation with trade union. The government on the other hand is going ahead with changes in the labour laws, which are wholeheartedly welcomed by the employers’ organisations.

Dr Venkatratnam had mentioned about union-free establishments. They became union-free because workers are not allowed to form trade unions and a claim is being made that workers do not desire to form trade union due to good working conditions. As a matter of fact, if attempt to form a union is made, workers leaders are immediately thrown out of jobs and the government fails to protect such employees from victimisation.

So much is talked today about workers involvement as equal partners in industry. But then why is the bill on workers participation in management kept pending in parliament for the last 15 years even though the decision to enact one was taken in a tripartite meeting? We are told by the government of India that employers’ organisations are opposed to it. An argument is advanced that in a globalised economy there is no scope for workers participation in management. Basically, the government of India has no political will to bring this bill. The employers however want to participate in the management of unions by forming pro-management unions. Can industrial relations improve under these circumstances?

INDISCIPLINE OF EMPLOYERS

Though employers’ organisations are frequently talking about indiscipline among the workers, they do not take action against indiscipline among the employers. Has any employers’ organisation, including CII, issued any circular to pay PF dues in time? The arrears have reached a whopping Rs1400 crore but no employer has been imprisoned despite legal provision. Non-payment of taxes by the corporate sector to government has reached one lakh crore rupees according to officials figures while many tax defaulters are leaders of the employers’ organisations. The non-payment of bank loans leading to increase in so called non-performing assets (NPAs) of the banking industry has reached 1,30,000 crores which involves top-most industrialists in the country. The industrial houses do not speak against growing economic crimes in the countries involving leading business houses.

The t rade union movement should take steps to reduce the present multiplicity of trade unions so that united voice of the working class is powerfully raised. A strong trade union movement is an asset for a sustained growth of economic development and proper industrial relations.

The trade union movement in India is ready for a serious dialogue if the employers are prepared for development of a self-reliant economy for the country and working out proper norms of industrial relations so that economy can move faster and social standards are improved. Elimination of poverty and job losses through generation of more jobs can lead to social happiness, a goal for which the trade union movement in India is striving.