People's Democracy

ANDHRA PRADESH

CPI(M) Demands Immediate Steps To Save People From Economic Crisis

M Venugopala Rao

THE state committee of the CPI(M) demanded the government to take specific steps immediately to come to the rescue of the people of the state who have been losing jobs and employment under the impact of the economic crisis. The state committee, in its meeting held on December 13-14, 2008, discussed the impact of economic crisis on different sections of the people in the state. It suggested the government to take steps on war footing to prevent retrenchment of workers and stop loss of employment opportunities. Because of economic recession, the impact of the crisis is fast spreading to other sectors also, while the sectors of real estate and building construction have already undergone severe slump. Due to lack of opportunities for exports, especially the export-oriented industries working in many districts in the state are reducing production. They are announcing lay-offs. At many places, workers are being removed from jobs. Export-oriented industries in and around Hyderabad, the SEZ in Visakhapatnam, Ferro Alloys in Vijayanagaram, paper industries, granite industries in several districts and mini steel plants have already started reducing production and removing employees by announcing lay-offs. Some more industries are moving in the direction of closure. When this is the case, it can be easily imagined what the situation would be like, when the crisis gets further intensified in the days to come.

Already, thousands of contract workers in different industries are being removed from works. It is being said that already up to 10,000 employees are retrenched from the software sector. Due to recession in real estate, construction workers, transport workers and workers of crushers are losing work. The crisis is spreading to rural areas also. The farming community is agitated over fall of prices for commercial crops due to reduction in exports and economic recession. Due to lack of remunerative prices, farmers cultivating Subabul, cotton, jamoil, silkworms, aqua and sugarcane are being pushed into crisis. Even during agricultural season, agricultural workers are not getting adequate work. During some of the days, the daily wage is getting reduced. On the other hand, in the name of crop season, the government stopped taking up works under national rural employment guarantee scheme. There is every need to extend this scheme to the workers who are losing employment not only in rural areas but also in municipal towns, the state committee of the CPI(M) emphasised. The impact of economic crisis is engulfing weavers, fishermen, barbers, and those who are rearing goats and sheep and other artisans. Solace needs to be provided to the rural and urban poor to protect them from rising prices.

The state committee of the CPI(M) demanded the state government to take the following steps immediately to protect the people from the crisis:

1. Moratorium should be imposed on retrenchment of workers in industries. Lay-offs should not be permitted. The government itself should come to the rescue of the industries in crisis so that the workers are not sacked. The protection packages announced by the central government to financial institutions and industries should be linked to protection of employment of workers in the respective industries.

2. National rural employment guarantee scheme should be implemented in all the districts immediately. The scheme should be extended to municipal towns also and assured employment to daily wage workers who are losing work there must be ensured.

3. Keeping the rising prices in view, minimum wages for those working in government services like anganwadi, homeguards, village servants, Asha, EKP, animators and village deepikas should be enhanced.

4. Steps should be taken to ensure remunerative prices for commercial crops. Due to the crisis, banks have stopped giving loans to the farming community. The government should intervene immediately and see that the loans are sanctioned to the farmers.

5. Steps should be taken for the protection of small and medium industries which provide employment on a large scale. The state government should announce a special package to come to the rescue of the industries which get affected by the crisis. Banks are not giving loans to small industries. The government should intervene and provide loans to them in time.

6. The quota of rice being given through ration shops is inadequate. The ration quota should be increased immediately. Other essential commodities should be distributed through ration shops. House sites should be given to the rural poor free of cost. Supply of essential commodities on pink cards (ration cards issued to the people above the poverty line) should be restarted.

7. In view of the falling of incomes of the people due to the economic crisis and rising prices, the government should take immediate steps to close down belt shops of liquor which have been rendering families bankrupt.