Economic Highlights

New Delhi, 25 February 2013

Trade Unions’ Strike

PAY HEED TO WORKERS’ CALL

By Shivaji Sarkar

Indian workers are both angry and distressed. This is reflected by the fact that for the first time in many years, 11 trade unions went for a joint two-day nationwide strike last week. And, the focus was not mere wage hike but a demand for concrete measures to check inflation, which has impoverished the worker. The reasoning being that no wage hike will be able to match rising prices.

The strike call received unprecedented response from different workers’ groups, including taxi and transport workers and bank employees. It is their concern for the nation. High prices have affected growth prospects of the country leading to job losses and lack of new ones. In fact, the process of liberalization has sadly sidelined the trade unions. Even as they gave the strike call, talks with them were more perfunctory under the Government’s belief that the economy could take a leap even without them.

Workers constitute around 38.3 per cent of the total population of the country (46 crore out of 121 crore). If we include their families and dependents it will cover over 95 per cent of the population. Thus, the wellbeing of the workers is the wellbeing of the nation per se. 

While inflation has hurt everyone, the workers’ agony was surprisingly not reflected in President Pranab Mukherjee’s speech at the inaugural day of Budget session. Even inflation found only a passing reference through a cliché response of concern. The speech also did not reflect the issue of shrinking employment. Instead, it came out with another jargonized promise of creating millions of jobs.

Industry too has come out with the usual response of losses with various organizations pegging it at Rs 26,000 crore. It forgets that the workers who went on strike too would be losing their wages. In fact, many auto-rickshaw, taxi and transport workers are owners of their vehicles. In a way this strike was different from previous strikes. Workers were concerned about the falling growth prospects and seeking more job opportunities. They preferred to lose their wages amounting to almost the same amount as the industry estimates in production losses. Production is important, but what is its use, if it does not help ameliorate the condition of the people?

The concern surprisingly is not reflected in the Government’s policy formulation, which as is again evident from the President’s assertion of “reforms” may not help the working class. Contract jobs have become more the norm, labour laws are being observed more in breach and social safety has been thrown to winds.

Indeed, the working class has been marginalized. Their wages are shrinking. The latest corporate reports suggest that this year not only the low-paid but even the high paid workers would receive the lowest-ever hike in wages. This conceals the fact that many would not be given a raise. Wages of many others have stagnated during the past over two years. Very few in the organized sector received a wage rise of around three per cent.

The industry and the government have their own reasons. If the economy is in a tizzy, the workers cannot get a raise. Rightly so and the trade unions are not unaware of it. They too are not demanding any raise, but seeking what is most logical for turning the economy around including their condition i.e. please check inflation.

However, the agony should not have led to violent protests as in Noida, Ambala and other parts of the country. While political parties may have sympathized with the workers they have condemned the violence. But the workers in Noida used the opportunity to express their discontent and anger as a large number of them had not been paid wages for past many months. Industry cannot take them for granted. The State’s labour department has not acted against the employers. Non-payment of wages is almost seen as routine. The government of any shade must be sympathetic to the difficulties the employees and their families face. If this doesn’t happen, howsoever unethical, illogical or illegal it might be such violent expressions are bound to take place.

The industry has to learn. “Reforms” cannot be a process for deprivation of workers. Contract work has only worsened working conditions and reduced wages. Even government jobs are now on short-term low-pay contract. The workers demand a change. 

If a government does not understand this, it ends up paying through its nose in unproductive schemes such as employment guarantees (MNREGA) or direct cash subsidy transfer. But it does so as it pays political dividends, which it did for the ruling UPA in 2009. Sadly, the Government is hoping for a repeat in 2014. Worse, the schemes are being touted as the biggest financial inclusion programmes. Nobody speaks of the impact these have on the economy and the mounting budgetary deficit. It has led to cuts on plan schemes, welfare and social sector--schemes that benefit the people.

Inflation has added to Government expenses. It means that whatever increases are being shown in allocations these cannot achieve the same momentum of three years ago for less allocation of sum. It depresses the economy.

The Government has tried to bridge the budgetary deficit with disinvestment of public sector units, which may have fetched some money-- around Rs 12,000 crore. But it is silent on the outgo of increased dividend, which is to rise every year. Calling it imprudent, the workers have demanded stoppage of disinvestment, but the Government has turned a deaf ear.

The workers also want immediate ratification of the ILO Conventions Nos. 87 and 98, which provide for freedom of association and protection of right to organize and the right to organize and collective bargaining respectively. Ratifying these will compel the Government to enact uniform legislations, which will help bring the employers and workers to the negotiating table.

It will provide a global legal instrument to make many of the demands such as better working conditions, safety, hygiene and availability of medical care in work places a reality. There will thus be lesser strikes and lockouts, and eventually higher production and productivity. This will also help in creating more jobs, ushering in more prosperity, bringing down rising prices and curtailing inflation.

India is the world’s largest democracy. People’s voice is the key strength of democracy and yet, if the voice of the weakest and the poorest is ignored, the nation can never reflect the aspirations of its people.

Significantly, this all-India strike has given an important message after the 1974 railway strike, which was a result of runaway 14 per cent inflation. It had crippled the nation but had led to many changes in the working condition and also forced the Government to initiate steps to check inflation.  

Will this happen again? Unfortunately, the Government’s attitude and rigid policy formulations give no such indication. However, it would be wise and appropriate for the UPA-II to heed to the workers’ call. It may lead to a turnaround of the economy for the worker is as essential to the process as an investment by a business tycoon. ---INFA

(Copyright, India News and Feature Alliance)