People's Democracy

Withdraw The Clandestine Move To Freeze Employment

K N Balagopal

ON November 23, 2005 the central government (Ministry of Finance, Department of Expenditure) issued a circular, ostensibly introducing austerity measures. However, a more detailed reading of the circular, aimed at particularly paragraphs 8, 9 and 10 amply exposes the real purpose behind their policy instructions, as freezing all employment opportunities in the government sector. As is well-known government is the longest employers on the country. In condition where development strategy followed is failing to engender employment opportunities particularly for our youth interring the labour, it is shameful and highly objectionable that the central government should resort to such a clandestine method, of issuing a routine circular to implement a policy move of such far reaching consequence for the youth of the country, as job freeze. The circular has lashed the hopes of employment of millions of Indian youth.

The infamous circular issued by the Department of Expenditure in the name of austerity measures to control expenditure, lists 28 points for implementation by government departments. Paragraphs 8,9 and 10, (see box) unambiguously reveal the negative economic philosophy and inhuman attitude of the Congress led UPA government on this important issue.

Job Killer Circular

Following is the text of paragraphs 8, 9 and 10 of the infamous circular freezing employment:

 (8) There shall be a ban on creation of new posts in all Ministries/Departments/Autonomous Institutions. Any unavoidable proposals for the creation of posts, including Groups ‘B’, ‘C’ and ‘D’ posts, will continue to be referred to the Ministry of Finance (Department of Expenditure) for approval. The proposals would necessarily have to be based on ‘new organisation’ and accompanied by matching savings from existing related establishment. Outsourcing of routine services such as cleaning, maintenance, moving papers/dak etc., may be encouraged. 

(9) Every Ministry/ Department shall undertake a review of all the posts lying vacant for more than six months in the Ministry/Department and in the Attached and Subordinate Offices, etc., in consultation with the Ministry of Finance (Department of Expenditure) so as to identify posts which can be abolished. These reviews must be completed by March 31, 2006 and details of vacant posts in the respective Ministries and those identified for abolition intimated to the Department of Expenditure immediately thereafter. Till the review is completed no posts lying vacant for more than six months should be filled up except with the prior approval of the Ministry of Finance (Department of Expenditure). 

(10) Implementation of Existing instructions of DoP&T OM No. 2/8/2001-PIC dated 16.05.2001 concerning 10 per cent cut in posts and abolition of posts lying vacant for more than one year will be ensured ".

These three paragraphs clearly expose the myopic development philosophy of the present government under the imprint of neo-liberalism, the philosophy of job-less growth. Once implemented in the government sector it will only reinforce the practice in the private sector. It is an accepted fact that a strategy based on squeezing employment job cuts and, wage freeze,and other such anti-working class policies, has an adverse impact on economic growth. By taking away purchasing power from the people, ultimately slowing down or even stopping the engine of growth itself. Therefore, in the long run it is self-defeating and injurious to the wealth and welfare of the nation.

The UPA government, which came to power by cashing in on the dreams of the younger generation of the country, is now trying to deceive the youth. It was the earlier BJP led NDA government, which had ruled the country for more than 6 years, practically destroying the nation’s economic sovereignty in different ways, which sowed the seeds of this strategy of job-less growth. On the pretext of accelerating economic growth, they introduced several schemes, which damaged the economic structure of the country. The impact of these policies was felt squarely on employment and education. They allowed the education system of the country to be commercialised while the employment scenario worsened drastically over the period. Due to the development models based on ‘Jobless Growth’ and ‘Job loss growth’ lakhs of workers lost their jobs. Now millions of unemployed youth are being denied not just jobs, but the very hope of getting employment, around which they dream to construct their lives. Of course, a microscopic minority, the new generation entrepreneurs, and big capital from both within and outside the country benefited from this anti-people strategy of economic management.

It is alarming that the very central governments, which were expected to promote equitable development and welfare of the people, are shirking their historic responsibility. For the first time in the history of Independent India, central government in 2001, announced the decision to cut 10 per cent of jobs in government. It decided to abolish vacant posts and imposed a permanent ban on recruitment. A majority of the state governments followed suit; public sector undertakings and nationalised banks also fell into line. The result was a deplorable crisis on the employment front. Today more than 3.5 lakh posts are lying vacant in the central government; in State governments the number is estimated at more than 30 lakhs. In Indian Railways alone for example more than six lakh posts are lying vacant. Nationalised banks also, which are major job provider have, vigorously abolished lakhs of jobs.

This peculiar situation has also resulted in the creation of a ‘substandard’ job market, providing the maximum leverage for the exploitative class to use this situation to reduce the quality of employment. The new employment opportunities negated the concepts of ‘decent employment’ and job security. A ‘Hire and Fire’ system was introduced; laws were amended and the Judiciary was converted into a watchdog of the ‘Procrustean bed’ which cut labour and labour laws into the sizes dictated the capital.

The resultant bleak situation of inhuman treatment and indecent life, accelerated the discontent among young and old generations able against the policies of the BJP led NDA government. Agitations took place throughout the country, and through the Lok Sabha elections, the people taught the BJP and NDA a fitting lesson — the BJP led NDA government was thrown out of power and the UPA was elected. On the promises to reverse the policies of the NDA government so-called high-tech chief minister along with hailed as development messiah.

In it election manifesto, Congress emphasised the need to take major initiatives for creating employment opportunities. The common minimum program (CMP), supposedly the ‘Bible’ of the UPA government, also pledged significant policy changes in favour of the unemployed youth, and the prime minister himself promised “a development policy with human face”. More recently, responding to popular demand and as a result of the pressure exercised by the Left parties and youth organisations; the government has introduced the Employment Guarantee Act. Notwithstanding this progressive initiative continuing pro-rich economic policies of the government need to be fought.

ON OUTSOURCING

The circular, advocates outsourcing of services. In fact this outsourcing is intended for contractualising and even privatising all class IV category jobs, which do not require special skills. Already a percentage of security services, cleaning etc, have been contractualised. in the coming days, UPA government wants to totally contractualise all such jobs.

Despite the UPA government assurance on coming to power and the prime minister specifies assurance to a delegation of DYFI leaders on November 2, 2004 that his government would reverse the anti-youth policies of the earlier BJP government, paragraph 10 of the circular reiterates the earlier 2001 order of the Vajpayee government on abolishing posts which have remained for more than 6 months. This shows dishonest intention on the part of the UPA government.

In fact the order remains in force, because of which lakhs of active vacancies have been abolished. In addition there is a permanent ban on recruitment keeping further lakhs of jobs vacant. Now to the circular, there posts will also be abolished! This is nothing short of a criminal conspiracy to cheat the Indian youth.

It is quite difficult to understand the logic behind these anti-people policies. Following the government’s initiative the cash-rich PSUs, including the ‘Navarathnas’ are also taking similar steps. For example the ONGC which makes an annual net profit of more than Rs 14000 crore, BSNL which announced a profit of Rs 11250 crors and SBI which makes a profit of more than Rs 4000 crore, have also retrenched thousands of employees. The profit of each company is itself several times higher than the annual budget of many of the state governments. Sitting over huge cash reserves and piled-up profits, even government institutions are making strategies to reduce the number of employees. Then how can one criticise the private companies?

We must here again raise the question about development and growth. For whom is this development and huge profit. A development model, which protects the interest of a very small minority, at the expense of the people at large, is no development made lat all and cannot be allowed to continue. The government, which follows such policies must change its decisions. The Congress led UPA government must learn the lessons from history. They must reformulate their policy perspectives in tune with these election promises and commitment pronounced through the common minimum programme, and respect the real spirit of the people’s verdict in the Lok Sabha elections.

The DYFI calls upon the central government to withdraw this anti-youth circular immediately. DYFI requests all progressive political parties and individuals to intervene in this issue, and compel the government to change its policies. DYFI warns the government that if this circular is not withdrawn, it will organise nation wide agitations by mobilising youth against this anti-youth, anti- development, anti-nation circular.

(The writer is president of DYFI)