Meeting of the
All India Coordination Committee of Public Sector Trade Unions
BTR Bhavan, New Delhi, 30-31 August 2014
Background Note
Dear Comrades,
We welcome you all in this meeting of our Coordination Committee. We had met last
exactly one year back at Ranchi in the month of August 2013. 200 delegates from a large number
of CPSUs comprising of major sectors like coal, steel, oil and natural gas, power, heavy
engineering, telecommunication, electronics, shipping, port & docks, construction, Bangalore
based PSUs representing around 50 trade union organizations from 14 states participated in the
meeting. Jharkhand state committee of CITU hosted the meeting.
At the outset it is very important to note that we are meeting in the background of an
unprecedented onslaught on the working class and trade union movement of the country in
general and public sector workers in particular by the Narendra Modi Government.
The 16th Lok Sabha election has produced an unprecedented shocking result - a party
based on the Hindutva ideology has won an absolute majority in the Lok Sabha. The sweeping
victory of the BJP-led alliance represents a rightward shift with all its socio-politico-economic
consequences. The 16th Lok Sabha election results reveal that while on the one hand there is
absolute majority for BJP with just 31% votes and on the other hand there is a serious weakening
of the Left forces in Parliament at their all time low with only 12 MPs in the Lok Sabha. The
complete Right-wing takeover of the governance in India has been attained. This will have a
serious bearing on the life and livelihood of the common people, the working class in particular.
Their political and social ramifications are also bound to be very serious.
The elections were held at a time when international finance capital is seeking to push
India towards a more aggressive neo-liberal trajectory. The Indian big bourgeoisie was also
committed to the same path hoping to get out of the crisis which was enveloping the economy.
Both these external and internal forces were obviously interested in isolating and marginalizing
the Left political forces in Parliament.
Modi Government’s Aggressive Push to Neo-liberalism
The direction of the BJP-led government is unfolding day by day. It is aggressively
pursuing neo-liberal policies and a big business driven model of exclusive development. As in
the time of the earlier NDA government, the infiltration of the RSS into the institutions of the
State and the communalization of the educational system and social and cultural institutions will
be initiated. There will be an emphasis on an authoritarian rule which will increasingly infringe
on the democratic rights of the people. The model of development that Narendra Modi seeks to
build will mean the curtailment of the welfare measures and the livelihood needs of the vast mass
of the working people and the poor.
1
Within weeks of sitting on the saddle of the Government at the Centre, ominous signals
are emanating for the working class, especially the Public Sector employees. Modi is now
echoing more loudly the voice of UPA-II Government for taking ‘tough decisions’ ‘to revive the
economy’.
Prime Minister Narendra Modi warned of “tough decisions” over the next couple of years
to improve the country’s financial health, which he said may not go down well with some
sections, and attacked the way the previous UPA government had handled the economy.’
“Taking tough decisions and strong measures in the coming one or two years are needed to bring
financial discipline which will restore and boost the country’s self-confidence,” he said
addressing BJP workers at Panaji in Goa. Obviously the sections Modi is targeting are the
working class, who unitedly and consistently fought and was able to slow down to an extent, the
neo-liberal reforms measures of erstwhile UPA government. This, the corporate media dubbed
as ‘policy paralysis’ of UPA government. There has been consistent pressure to cut in subsidies
on food, fuel and fertilizer.
Even before completing 20 days in office, the NDA Government has announced an
increase in railway fares by about 14.5% and freight charges 6.5%; diesel price has been
increased raising prices of almost everything. Several other doses of price rise are being
expected from the concerted statements of the Prime Minister himself that “common people have
to swallow bitter pills” for the “aane wale ache din ke liye”.
During the nearly three months of the Narendra Modi government, it has become clear
that the government will adopt policies for the benefit of big business and international finance
capital. The direction of the Union Budget for 2014-15 is to provide concessions to the
corporates and the upper classes at the expense of the poorer sections. It is a trajectory for
significant privatization of the economy through large-scale sale of public sector shares and
greater reliance on public-private partnership. The fiscal deficit will be reined in only by
expenditure cuts and squeezing the people further.
Comrades, it is a fact that the UPA-2 Government led by the Congress Party had been
continuously working against the interest of toiling people and public sector was under attack
during their tenure and also they repeatedly attempted to amend labour laws in favour of the
capitalist class. However under pressure of united struggle of the trade union movement they did
not succeed much. But with the Narendra Modi Government at the centre the socio-politicaleconomic policy of the country is being tracked to a more dangerous direction.
Within three months of Modi Government coming to power, peace and harmony in our
society has already come under serious attack. Communal incidences are organized by the
majoritarian religious fanatic forces in different pockets of the country. The RSS and its different
outfits have started speaking openly in support of their communal agenda. Achievements of
modern civilized secular society in the country is pushed to reverse by the revivalist forces. For
that matter the 16th Lok Sabha elections result and installation of Modi Government is a kind of
counter revolution in the Indian society. The working class is the product of science and
technological revolution. Working class is destined to lead the transformation of capitalist
2
society to a socialist society. Therefore it has the historic responsibility to oppose and defeat the
forces of revivalism.
The role played by corporate controlled private media including electronic and print
media in organizing mindboggling aggressive and huge expensive campaign focusing Narendra
Modi and the unimaginable flow of fund from big corporate houses both domestic and foreign
and the unprecedented scale of spending in the electioneering by Narendra Modi-led NDA must
be the parameters to understand the political and economic policies in favour of the capitalist
class and obviously against the interest of the working class the Modi Government is duty bound
to formulate and pursue.
Today we must pay priority attention to the following issues of core and critical
importance to our public sector trade union movement which have already come under serious
attack by the Modi Government:
Massive divestment of CPSUs equity, sell out of residue Government shares in the
concerned CPSUs;
Introduction/Increased limit of Foreign Direct Investment (FDI) in core strategic
sectors of the economy like Insurance, Defence Production, Railways;
Massive disastrous amendment in basic labour laws directed to snatch statutory
labour law protection and democratic TU rights of workers and on the contrary
granting exemption to employers from almost all obligations of labour laws and
enabling employers to realise trade unionless enterprises;
Further deterioration in composition of workforce against the interest of workers by
replacing both regular workers and contract workers with trainees;
Huge Contribution of Public Sector in our Economy
Ever since the country was pushed to the disastrous path of neo-liberalism under
imperialist globalization, public sector has been the victim of orchestrated vilification campaign
negating the glorious role played by our PSUs in post independent economic development of the
country. The role of public sector has been aptly captured thus: “Today Public Sector is an
inseparable part of the process and dynamics of economic development in India. It is gloriously
serving the nation for the past over six decades by providing strong building blocks. It has been
strengthening the financial resources of the government for the investment in laying
infrastructure and social development.”
The atrocious manner the shine of the public sector is blackened with the ulterior motive
to put public sector in poor light, dismantle PSUs and provide passage to private sector to grab
the national assets for a song, it is necessary to reinvigorate campaign under the leadership of the
working class in PSUs in particular to counter the conspiracy to kill public sector and showcase
the place of pride the PSUs achieved over the decades.
3
To counter the onslaught of neo-liberal order and the era of cut throat competition, PSUs
have undertaken several steps to perform and operate on a par with their private competitors,
such as adopting state-of-the-art technologies, focusing on improving productivity, implementing
welfare benefits to employees, establishing brands and increasing marketing efforts.
It is worth appreciating that the public sector contributed significantly to India’s
resilience against the impacts of the global meltdown witnessed from mid-2008. Much against
the apprehensions about their competitiveness, the central CPSUs strode and have been striding
ahead to take the challenges head-on.
Displaying strong immunity to the global and economic slowdown, the public sector
continued to show impressive performance by maintaining the highest orders of governance and
ethical practices. Within a short span of time, many CPSUs have progressed to the status of
Maharatna and Navratna.
The public sector banks (PSBs), which have played an important role in shaping up the
Indian economy continue to dominate the Indian banking sector, accounting for more than 70%
share of the total banking business in India. In other vital sectors, too, CPSUs maintain
dominance as in coal (over 80%), crude oil (over 70%), refineries (over 55%), wired lines (over
80%) and electricity (over 37%). On an aggregate basis, CPSUs are estimated to have a presence
of 36% in the services sector, 17.9% in manufacturing and 7.3% in mining.
During the year 2011-12, the turnover of all PSEs grew by almost 23% to Rs.18,41,927
crore from Rs.14,98,018 crore in the previous year. Similarly, the net worth and net profit also
maintained positive growth. Net worth grew by 8.38% to Rs.7,77,812 crore from Rs.7,17,641
crore while net profit grew by 5.84% to Rs.97,513 crore from Rs.92,128 crore.
CPSUs’ contribution to the central exchequer by way of dividend payment, interest on
government loans and payment of taxes and duties, increased to Rs.1,60,801 crore in 2011-12
from Rs.1,56,751 crore in 2010-11. CPSUs have also been contributing substantially to the
country’s foreign exchange earnings, thereby enhancing the global image of the country. During
the year 2011-12, foreign exchange earnings of CPSUs increased to Rs.1,24,492 crore from
Rs.91,774 crore in 2010-11, showing a growth of 36%. This is a reflection of their high
creditworthiness and global competitiveness.
Top Ten Profit Making CPSEs (2012-13)
Sl.No.
(1)
1.
2.
3.
4.
5.
6.
7.
Name of the CPSEs
(2)
Oil & Natural Gas Corporation Ltd.
NTPC Ltd.
Fertilizer Corporation of India Ltd.
Coal India Ltd.
Bharat Heavy Electricals Ltd.
NMDC Ltd.
Indian Oil Corporation Ltd.
Net profit
(3)
20925.70
12619.39
10778.08
9794.32
6614.73
6342.37
5005.17
4
(Rs. In crore)
% share in total net profit
(4)
15.50
9.34
7.98
7.25
4.90
4.70
3.71
8.
9.
10.
Power Finance Corporation
Power Grid Corporation of India Ltd.
GAIL (India) Ltd
Total (1 to 10)
Net Profit of profit making CPSEs.
4419.60
4234.50
4022.20
84756.06
135048.07
3.27
3.14
2.98
62.76
--
We append below a table showing top ten loss making CPSEs for the year 2012-13. The
list includes very important PSUs like BSNL, MTNL, Air India. CPCL, MRPL Here it is
necessary to understand that the strategically vital PSUs are not financially ill placed due to
operational weakness or due to problem with the employees. The main reason of losses is hostile
policy regime, conspiracy by their private competitors in connivance with the successive ruling
regimes. There is urgent need to organise campaign collectively by all PSU unions with effective
initiative by the unions of the concerned PSU to expose the conspiracy and bring out the truth
before the nation. Self-introspection by employees of the PSUs concerned is also necessary.
Some of the PSUs in the list are not in operation for last more than one decade.
Top Ten Loss Making CPSEs (2012-13)
Sl. No.
Name of the CPSEs
(1)
(2)
Bharat Sanchar Nigam Ltd.
Mahanagar Telephone Nigam Ltd.
Air India Ltd.
Chennai Petroleum Corporation
Ltd
Hindustan Photo Films
Manufacturing Co. Ltd.
Hindustan Cables Ltd
Mangalore Refinery &
Petrochemicals Ltd
Bharat Petro Resources Ltd.
Hindustan Fertilizer Corporation
Ltd
Fertilizers & Chemicals
(Travancore)
Total Loss (1 to 10)
Net Loss of loss making CPSEs.
Net Loss
(3)
(-) 7884.44
(-) 5321.12
(-) 5198.55
(-) 1766.84
(Rs. in crore)
(% share in total net loss)
(4)
27.90
18.83
18.40
6.25
(-) 1560.59
5.52
(-) -885.05
(-) 756.91
3.13
2.68
(-) -382.64
(-) 380.53
1.35
1.35
(-) 353.96
1.25
(-) 24490.63
(-) 28260.50
86.66
100
CPSUs also have substantial investments planned to be made in the coming years. For
FY’13 alone, the projected investment was more than Rs.40,000 crore for ONGC, Rs.20,000
crore for NTPC, about Rs.10,000 crore each for OIL, IOCL, SAIL, CIL & GAIL. Such massive
investments being made by the CPSUs are bound to strengthen them and also have a multiplier
effect on the economy.
5
The public sector personnel have become an impressive source of manpower even for the
multinationals and the Indian private enterprises. This talent pool has been developed by
adopting and assimilating modern day management and skilled human resources development
techniques. The public sector has also an unparalleled record of contributing and shouldering the
corporate social responsibility that was the basic charter given to the sector at its very inception.
Equally impressive is the fact that CPSUs are increasingly funding their expansion and
investments from internal resource generation, thereby reducing their dependence on government
budgetary support. (Courtesy Kaleido Scope). In the matter of debt-equity ratio, the score of
public sector is far far better than private sector. While in public sector debt component is very
less and in cases it is nil, in the case of private sector the debt component is very large and equity
component is very small. The following table shows the contribution from internal resources for
various investment purposes in PSUs.
Abolition of Planning Commission of India (PCI)
The Narendra Modi Government has announced their decision to abolish the Planning
Commission of India (PCI). The Government has their overt and covert ulterior motive behind
6
the move. It is a different matter that the PCI has been dragged far away from its founding aims
and objectives particularly during the era of neo-liberalism. However here we shall concentrate
on PCI-vis-à-vis public sector.
But we must not miss to note that Modi Government is in competition with the UPA-2
Government in their resolve and dedication to the doctrine of neoliberalism and market
controlled economic order. Now if the UPA-2 Government totally diluted the whole concept of
planned economy in which public sector used to play dominating role, the Modi Government
surpassed the UPA-2 Government in their dedication and total commitment to neo-liberalism by
altogether abolishing the PCI itself.
We append below a table showing the total Plan allocation and the share of Public Sector
in the total allocation during the entire plan period which will capture many revealing facts. One
clear feature emanates from the table is the sharp continuous decline of allocation for public
sector ever since the onset of neo-liberal order in the country.
Plan period
Total Plan Allocation
I.
1951-56
II.
1956-61
III.
1961-66
66-69 3 annual plans
IV.
1969-74
V.
1974-79
VI.
1980-85
VII. 1985-90
VIII. 1992-97
IX.
1997-02
X.
2002-07
XI.
2007-12
XII. 2012-17
Rs. 3,360 crore
Rs. 6,831 crore
Rs. 10,400 crore
Rs. 16,059 crore
Rs. 22,636 crore
Rs. 63,751 crore
Rs.158710 Crore
Rs.322,366 crore
Rs. 798,000 crore
Rs.21,70,000 crores
N/A
Rs. 36,44, 718 crores
N/A
Total allocation
Public Sector
Rs. 1559 crore
Rs. 3730 crore
Rs. 6300 crore
Rs. 6571crore
Rs. 13550 crore
Rs. 36703 crore
Rs. 84,000 Crore
Rs.1,54,218 crore
Rs. 3,61,000 crore
Rs. 7,26,000 crores
N/A
N/A
for
%
46.4 per cent
54.6 per cent
60.6 per cent
40.8 per cent
60.3 per cent
52.9 per cent
48 per cent
45.2 percent
33.4 per cent
N/A
23 per cent
N/A
It will be interesting to recollect from the table below as to how some of the strategic
sectors and individual PSUs came into being as an integral part of our Five Year Plan
implementation and how those have contributed in an invaluable scale in the post independence
economic reconstruction of our country. These pride of the nation must be ingredients to ignite
the leaders and cadres of our movement to mobilize the rank and file and mass of the workers to
protect the economic monument of our country being destroyed by the enemies of the nation and
those who have sold themselves to private sector, both domestic and foreign, and now want to
sell the economic strength and independence of the country.
Sl. No.
1.
2.
3.
Name of Public Sector
Rourkela Steel Plant
Bhilai Steel Plant
Durgapur Steel Plant
Year of formation
1954
1955
1956
7
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
Bokaro Steel Plant
Steel Plant at Salem
Steel Plant at Bijoynagar
Steel Plant at Vishakhapatnam
Steel Authority of India Limited (SAIL)
Hindustan Steel Works Construction Limited
Bharat Coking Coal Limited
National Mineral Development Corporation Limited
Oil and Natural Gas Corporation
Hindustan Machine Tools (HMT)
Hindustan Antibiotics
Indian Telephone Industries (ITI)
Sindri Fertilizer Factory
Fertilizer Corporation of India
National Fertilizer Limited
Chittaranjan Locomotive Factory
Hindustan Shipyards
Hindustan Cables
Hindustan Insecticides
Bharat Heavy Electricals Limited (BHEL)
Indian Oil Corporation (IOC)
Bharat Petroleum Corporation Limited (BPCL)
Hindustan Petroleum Corporation Limited (HPCL)
Life Insurance Corporation of India
Nationalization of 14 Scheduled Commercial Banks
General Insurance Company (GIC)
Third Five Year Plan
Fourth Five Year Plan
Fourth Five Year Plan
Fourth Five Year Plan
1974
First five year plan
First five year plan
First five year plan
1956
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
Initial Five Year Plans
1956
1969
November 1972
Three Distinct Periods
The Industrial Policy Resolution of 1956 and the strong support of successive Five Year
Plans played the role of locomotive to the forward journey of public sector in our country. With
the Janata Party Government of Morarji Desai the journey slowed down but recouped to an
extent subsequently. With Rajiv Gandhi (1984-1989) era marked the thrust towards liberalization
and the final reverse gear journey of public sector in our country took off with the adoption of
‘New Economic Policy in 1991.
The onslaught of privatisation of public sector through the various routes including
simple divestment followed by strategic divestment and then direct total privatisation of PSUs
marked the disastrous process of dismantling of public sector under the doctrine of neoliberalism.
From the discussion below the most destructive role of NDA Government in dismantling
public sector undertakings can be clearly noticed. And we must not miss to take note of the
exception during the UPA-I when the Left Parties with their best strength in Parliament played
remarkable role to halt the process of dismantling public sector dismantling.
8
The country has already experienced the naked anti-public sector and avowedly proprivate sector role of the last NDA Government. Now that record of the NDA Government is
poised to experience extreme height under NDA with Narendra Modi at the seat of Prime
Minister with absolute majority seats in Lok Sabha with BJP.
Therefore, Comrades, it is a situation of do or dies for each and every worker in public
sector and leader or cadre of trade union worthy of its name operating in any public sector
industry in the country.
Disinvestment Onslaught during Last NDA Government
In the current context we may recall that although the policy onslaught on public sector
was launched by the Congress Government with Manmohan Singh as the then Finance Minister
the most atrocious attack on public sector came during the last NDA Government.
The Department of Disinvestment was set up as a separate department in December, 1999
and was later renamed as Ministry of Disinvestment from September, 2004 with ill famed Arun
Shourie as the Disinvestment Minister in the Vajpayee Cabinet. During this period many
disastrous decisions against the interest of public sector were adopted. Divestments as well as
strategic sale of PSUs were carried out at extremely undervalued price of equity and scandalous
undue favours were showered on the private grabbers of PSUs.
However subsequently during UPA-I Government under the pressure of Left Political
Parties from May, 2004, the Department of Disinvestment was abolished and became one of the
Departments under the Ministry of Finance. Disinvestment during this period was almost nil.
Thanks to the strong presence of Left forces in Parliament.
During the period from 2001-02 - 2003-04 (NDA Government) maximum number of
disinvestments took place. These took the shape of either strategic sales (involving an effective
transfer of control and management to a private entity) or an offer for sale route. Some of the
companies which were divested through strategic sale route included: Bharat Aluminium Co.Ltd,
CMC Ltd, Hindustan Zinc Ltd, Hotel Corp.of India Ltd. (3 Operties: Centaur Hotel, Juhu Beach,
Centaur Hotel Airport, Mumbai & Indo Hokke Hotels Ltd.,Rajgir) Htl Ltd.Ibp Co.Ltd.India
Tourism Development Corp.Ltd.(18 Hotel Properties)Indian Petrochemicals Corp.Ltd. Jessop &
Co.Ltd.Lagan Jute Machinery Co.Ltd, The Maruti Suzuki India Ltd, Modern Food Industries
(India) Ltd, Paradeep Phosphates Ltd, Tata Communications Ltd.
Disinvestment Drive of Modi Government
Narendra Modi Government is poised to push the biggest ever divestment onslaught. The
Finance Ministry has identified over a dozen public sector undertakings for equity divestment
during the remaining eight months of the current financial year. The Government has been
aggressively working to mop up Rs.58,425 crore by selling stake in PSUs. In the budget the
9
Government estimated to collect Rs.43,425 crore from selling stake in PSUs and another
Rs.15,000 crore from sale of residual stake in previously divested PSUs. Arun Jaitley has said,
“our divestment programme is progressing as per schedule.”
Some finance ministry officials say, it would not be possible to surpass the target even if
the market remains at the current level because to attract investors, the issues would be priced at
a lower rate. “If markets remain buoyant and ministries and PSUs don’t show any resistance,
only then the target can be achieved,” says a finance ministry official, adding that the
disinvestment target was set keeping in mind the current market conditions, and also it was
believed that a “firm government” would be able to bring on board the PSUs opposing the stake
sale. It is a clear threat to force the PSUs management to obey the dictate of the Government in
the matter at the cost of national interest.
Meanwhile it is a matter of indignation that SEBI (Security and Exchange Board of India)
has come out with stipulation (with what legal authority?) that a minimum 25% stake of all listed
PSUs must be divested. Now there are more than 30 PSUs where the government is required to
bring its stake down to 75 per cent. The table below shows some of the major ones out of the 30.
In the meantime Government is working out the options for implementation process of the SEBI
decision.
Major PSUs under the SEBI Axe
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
PSU
Coal India
NMDC
NHPC
Neyveli Lignite
SJVN
SAIL
Central Bank
MRPL
MMTC
Hindustan Copper
NALCO
Current Govt Percentage of No. of Shares
holding (%)
shares sold
(Crore)
89.65
14.65
92.5
80.00
5.00
19.8
85.96
10.96
121.3
90.00
15.00
25.2
89.97
14.97
61.9
80.00
5.00
20.7
88.63
13.63
18.4
88.58
13.58
23.8
90.00
15.00
15.0
90.00
15.00
13.9
81.06
6.06
15.6
Value
(Rs./Crore)*
26,499
2,583
2,245
1,527
1,271
1,243
993
986
981
958
546
Power Finance Corporation, Rural Electrification Corporation, Tehri Hydro Development
Corporation and Satluj Jal Vidyut Nigam may be among the first few to go for disinvestment.
The other PSUs likely to divest this year are NHPC, Concor, MMTC, Neyveli Lignite
Corporation and MOIL (formerly Manganese Ore India Limited). Most of the divestment is
designed by the Government through the route of ‘Offer for Sale’. Besides Tehri Hydro
Development Corporation, there will be two more IPOs: Hindustan Aeronautics and Rashtriya
Ispat Nigam. Buybacks and cross- holdings are the other routes Government could employ to
raise funds.
The Cabinet Committee on Economic Affairs has already given the go- ahead to sell
stake in Hindustan Aeronautics, Rashtriya Ispat Nigam, SAIL, Hindustan Zinc and Balco. A note
10
has been floated for inter- ministerial discussion with regard to a stake sale in Coal India, ONGC,
NHPC, Power Finance Corporation, Rural Electrification Corporation and Concor. Road shows
are being planned from next month in Singapore, Hong Kong and some other cities for SAIL,
NHPC and other companies.
The finance ministry is also discussing the possibility of divesting a stake in some
unlisted companies of the Railways such as Indian Railways Construction Company, Indian
Railway Finance Corporation and Indian Railways Catering and Tourism Corporation. It remains
to be seen whether foreign investors appetite for PSUs is really that strong. Otherwise, the Life
Insurance Corporation might have to step in— just as it has in the past.
The Department of Disinvestment (DoD) has already appointed advisors for the purpose.
The process of disinvestment in ONGC and NHPC among others has already been started.
Government has decided to sell 5% stake in SAIL and 10% stake in RINL (Vizag Steel Plant)
and HAL in the current fiscal besides an outright sale of TCI. Further the union Cabinet has
already approved sale of residual government equity in Hindustan Zinc and BALCO.
In the meantime the Modi Government has adopted a retrograde decision to hike/allow FDI in
Defence sector, Insurance sector and Railways. Such move emanates from the surrender of the
Modi Government to the International Finance Capital which will result in further tightening grip
of foreign capital in our economy at the cost of our economic sovereignty.
ONGC Cautions Government On Stake Sale
Managements of some PSUs have written to their respective Ministries expressing their
reservations over proposed divestment of equity under different considerations. For example,
according to ‘Resource Digest’ July-August 2014 issue in a recent letter to the oil ministry the
company (ONGC) flagged at least five issues and cautioned the Government that without
resolving those issues any divestment may not realize the true potential or value of ONGC’s
stature.
The trade unions in ONGC are rather duty bound to act firmly against the decision of
disinvestment and go up-to any length to defeat the move. Unity of the ONGC workers both
regular and contractor must be forged at any cost.
Without going into the ‘ifs and buts’ of the position taken by the ONGC management in
conveying their views to the Ministry, it is better to understand that no management can act more
aggressively against the decision of the Government. We should take advantage of the stand of
the management and immediately take all out initiative to go for campaign, agitation and action
unitedly to stop disinvestment equity in ONGC.
Attack on Right to Trade Union & Safeguard under Labour Laws
The Narendra Modi-led NDA Government composed of BJP and other right wing parties,
soon after coming to power at the centre, has initiated move in abnormal haste to amend all
important labour laws in favour of the employers. Several state governments have also initiated
11
such measures. Such anti-labour steps were apprehended as the big business Corporates who
have spent huge funds for the election campaign to see that Modi-led government is installed at
the Centre would leave no stone unturned to ensure hefty returns on their investment in election
campaign.
The amendments will result in serious negative impact on the working conditions
including trade union rights of the workers and the employees. It is unfortunate that in spite of
the assurance given by the Labour Minister that Central Trade Unions will be consulted, the
disastrous amendments in labour laws are being pushed through without any consultations with
trade unions.
Amendments of Labour Laws in Rajasthan
The Rajasthan Assembly has already passed three amendments which are more
retrograde and detrimental to the rights and livelihood of the working people at large. The whole
process is aimed to do away with the tripartite consultation mechanism.
The Rajasthan state government is being utilised by the NDA Government as a laboratory
in the project of overhauling labour laws in favour of employers. It has already amended the
Industrial Disputes Act, Factories Act and Contract Labour (Regulation & Abolition) Act
incorporating atrocious anti-worker provisions by bringing the amendment bills and getting them
passed on the same day on 1st August 2014 despite vociferous opposition from all trade unions
including those having allegiance to ruling party.
This exercise of the BJP government in Rajasthan in the service of the employers class,
both domestic and foreign, is an indication of the type of onslaughts that are going to be made on
the working class throughout the country in the days to come. Already such move is reported to
be afoot in respect of a number of labour laws.
The amendments passed by Rajasthan Assembly on 31st July, 2014 in Industrial Disputes
Act, Factories Act and Contract Labour (Regulation & Abolition) Act will make hire and fire
much easier for the employers and rampant casualisation of employment. Liberalising the
provisions of Factories Act will imperil the safety at work place in small and medium scale
enterprises and will push majority of factories out of its coverage. Similarly raising the ceiling
of 20 to 50 workers for registration of contractors will enable the principal employer and
contractor to become unaccountable for service conditions of the workers in a large number of
enterprises.
Labour Law Amendment Bills Introduced in Parliament
The Amendment Bills already introduced in Parliament by Central Government on
Factories Act, Labour Laws (Exemption from Furnishing Returns and Maintaining Registers for
certain Establishments) Act and Apprenticeship Act are also designed to bring about such
changes which will adversely affect the service conditions of the workers throwing
overwhelming majority of them out of the coverage of all basic labour laws. The Central
Government. is also considering amendments in Minimum Wages Act and Industrial Disputes
Act. The proposed amendment to Apprenticeship Act can replace the contract/casual/ temporary
12
workers and even regular workers by comparatively low paid apprentices. Moreover,
amendments in Factories Act will straightway empower and encourage the state governments to
bring about pro-employer changes in labour laws as per the Rajasthan model.
In essence, all amendments in the labour laws being pushed through, both by the central
government and by the Government in Rajasthan are aimed at empowering the employers to
retrench/lay off workers or declare closure/shut down at will and also resort to mass scale
contractorisation. These are also designed to drag out more than seventy per cent of the industrial
and service establishments in the country and their workers out of the purview of almost all
labour laws, thereby allowing the employers a free hand to further squeeze and exploit the
workers.
Shockingly the Modi Government is silent on implementing the consensus
recommendations of 43rd, 44th and 45th Indian Labour Conferences on formulation of minimum
wages, same wage and benefits as regular workers for the contract workers and granting status of
workers with attendant benefits to those employed in various central govt. schemes.
It is also noted with utter dismay that the Modi Government is also continuing to ignore
the ten point demands of entire trade union movement pertaining to concrete action to be taken
for containing price-rise and aggravating unemployment situation, for strict implementation of
labour laws, halting mass scale unlawful contractorisation, ensuring minimum wages for all of
not less than Rs 10000 per month and universal social security benefits and pension for all
including the unorganized sector workers etc.
From June 5, 2014 onwards, the Central Labour Ministry posted in its website, the
proposals to amend the Factories Act, Minimum Wages Act and the Apprenticeship Act.
Thereafter, in the first week of August 2014, after the completion of exercise in Rajasthan
Assembly by the BJP government there, the central Government also introduced the Factories
(Amendment) Bill 2014, The Apprenticeship (Amendment) Bill 2014 in Lok Sabha and brought
back in business the Labour Laws (Exemption from Furnishing Returns and Maintaining of
Registers by Certain Establishments) Amendment Bill 2011 in Rajya Sabha.
FACTORIES ACT
Factories Act is applicable to premises with more than 10 workers with power and 20
workers without power. Now the amendments raise the numbers to 20 and 40 respectively.
Through amendment of section 56 of the Factories Act, the spread-over of time in which a
worker can be retained for getting his work for eight hours including lunch recess, is proposed to
be increased from 10.5 hours to 12 hours.
Through amendment of sections 64 and 65, the existing limitation on overtime work of
50 hours per quarter has been straightway increased to 100 hours; through provision of
exemptions by state government through the Chief Inspector such overtime work can be
extended to 125 hours in so called ‘public interest’. This grossly undermines the safety, health
and minimum work place welfare of workers.
MINIMUM WAGES ACT
13
The amendment proposed provides for applicability of the minimum wage for unskilled
workers in scheduled employment (both in part-I and part II of the schedules) for all workers,
irrespective of their skill level, in the employments/occupations not mentioned in any of the
schedule. This is totally unjust and is designed to serve the employers’ interests at the cost of the
workers.
LABOUR LAWS AMENDMENT BILL 2011
The Labour Laws (Exemption from Furnishing Returns and Maintaining of Registers by
Certain Establishments) Amendment Bill. The Bill proposes raising of the threshold level
employment from existing 19 to 40 for any establishment to be treated as small establishment. In
the name of simplifying the forms of returns and registers, it virtually exempts these
establishments from maintaining such registers and filing returns under 16 major labour laws
such as Factories Act, Payment of Wages Act, Minimum Wages Act, The weekly Holidays Act,
Plantation Labour Act, Contract Labour(R&A) Act, Building & Other Construction Workers Act
etc, embracing almost workers of all sectors. With the advanced technology available today,
there are many establishments with large capital investment and high levels of turnover and
profit but employing only 20 or so workers. As per an estimate more than 72 per cent factories in
the country now will find it much easier to violate all those 16 labour laws with impunity
subjecting the workers into more fierce exploitation
According to the amendment adopted in the Industrial Dispute Act by the BJP-led
Rajasthan Government and further amendment in the agenda of Modi Government,
Government’s prior permission will not be required for retrenchments in establishments
engaging up to 300 workers. Owing to this more than 80% of the factories and their workers
will come under ‘hire & fire’ regime of the employers. As a result of the amendment to Contract
Labour Act enhancing the employment under any contractor from 20 to 50 workers, the entire
section of contract workers in private sector establishments and large section of contract workers
even in PSUs will be denied the coverage of almost all labour laws, providing a free hand for the
employers in more than 80% of the factory establishments. If service sector is taken into
consideration, more than 90% of the workforce will be under the complete tyranny of the
employer’s class.
APPRENTICESHIP ACT:
The amendment proposed to the Apprenticeship Act 1961 first of all contains provision
to free offender employers from the penalty of imprisonment by deleting the concerned section
and replacing it by a fine of Rs 500. Then Employers are given wide flexibility to decide new
trades for engaging apprentices. The definition of workers under Apprenticeship Act is being
changed to include contract workers, casual workers and daily rated workers to decide the
number of apprentices as a ratio (minimum 30%) of total workers in the establishment. It is
almost certain to end up with numbers of Apprentices shall surpass the number of regular
workers in many modern automation based establishments.
14
This, along with the enhanced flexibility allowed to the employer, shall encourage
replacement of the contract/casual/temporary workers and even regular workers with
comparatively lower paid Apprentices (minimum 70% of the minimum wage) in production
work, thereby reducing the overall labour cost in terms of wages and perks. We must remember
that Apprentices are explicitly excluded from the purview of Trade Unions Act 1926. So with
Apprentices engaged in any establishment shall not only reduce labour cost but also trade union
activities shall also be done away with. The ground reality is that in numerous establishments
including companies like Maruti-Suzuki, the practice of using the apprentices/trainees in regular
production jobs, year after year is widely prevalent.
Fight to Protect the Achievements of Struggles
Several attempts have been made in the past by the different previous Governments to
carry out Labour Laws amendments to provide unhindered avenues to employers’ class to
abdicate all necessary obligations under Labour Laws and to further exploit the working people
to maximise profit. For example the first National Labour Commission in 1969 presided over by
Justice Gajendragadkar; then again in 1978 the Industrial Relations Bill 1978 was introduced in
Parliament by the Jana Party Government headed by Morarji Desai; the second National Labour
Commission was appointed by the BJP-led NDA Government headed by AB Vajpayee in the
year 1989 presided over by the then Labour Minister Ravindra Verma. In addition to these major
exercises there were many more comparatively minor initiatives by different Governments in the
past.
However, the determined united movement by working class in our country could
successfully resist these moves. Therefore, so far, no such major amendments could be made in
the past which would have adversely affected the working class. However, now it seems that the
Modi Government at the Centre is desperate to make the most retrograde labour law amendments
under pressure from the Big Business Houses in the country, Imperialist Agents and International
Finance Capital.
The working class in the country had to struggle hard to achieve Labour Laws. The
history of Indian labour legislations is the history of struggles by working class. Now the
retrograde amendments of Labour Laws are nothing but crime on the working people of the
country who create GDP, generate revenue for the public exchequer and profits for the
employers, being perpetrated by the Corporate servile Government of the day must be combated
resolutely. The so called ‘labour law rigidity’ is impediment in the way of employment
generation is white lie campaign by the stooges of the capitalist lobby in governance and their
politics must be thoroughly exposed.
All in united resistance has to be built up in every workplace of the country. In the past
all attempts to amend labour laws against the interest of the workers could be successfully
stalled. Given the historical time tested current unity of all Central Trade unions in the country
there cannot be any doubt about our success to defeat the current retrograde moves of the Modi
Government provided all of us act with commitment and determination and if forced, by
applying militancy at the levels of our respective industries and states/locations throughout the
country.
15
Gross Distrotion in the Ratio of
Regular Workers:Contractor Workers:Officers
No doubt we have been putting consistent emphasis on this issue and have been
thoroughly discussing in all our meetings including the immediate past two meetings at
Bangalore and Ranchi. In fact the Background Note presented in the Ranchi meeting dealt in
considerable details various facts and features with specific cases of example.
The dangerous dimension of the issue before the Public Sector workers are continuously
expanding. The data from Public Sector Enterprise Survey portray volcanic content. The number
of regular workers has been consistently declining year after year. Equally disturbing is that the
numbers of executive cadre employees and contract workers are rapidly increasing and in many
PSUs their numbers separately far surpassed the number of regular workers. Taking advantage
of capital intensive sophisticated technology based automation system. The PSUs are deploying
the so called executive cadre employees to jobs hitherto used to be done by regular skilled
workers. For example, today in continuously run process plants, the major shift points including
the entire control room are manned by the executives only, whereas previously permanent skilled
workers used to man such work points. Moreover, contract workers were not allowed to enter
such places of core operational work centres, but now contract workers are engaged as
supplementary workers. Through this process, they design to realize their ultimate motive to
turn the regular worker category redundant and ultimately to eliminate the component of regular
workers and restructure the human resource component comprised of ‘Executive Cadres and
Contract Workers’ and no or a very small number of permanent regular workers. This
development has definitely reduced the collective bargaining power of the trade unions in
CPSUs and has poised a serious challenge on their very existence.
The main factor behind such alarming decline in regular workforce in PSUs are
Superannuation, Compulsory retirement in the name of VRS, retrenchment due to closure of
units and definitely due to the continuing ban on recruitment of regular workers in almost all the
Central PSUs. The other contributing factors are phenomenal increase in deployment of
contractor workers and, of course, heavy deployment of highly automatic and sophisticated
technologies. The most alarming phenomenon is that not only the numbers of contract workers
are increasing by leaps and bounds but also they are being deployed in regular operational and
core jobs in the PSUs. To cite an example, in mining sector, particularly in non-coal mining, the
number of temporary contract workforce is much bigger than the regular workers. In coal
mining also owing to leasing and outsourcing of the mines to private parties, the numbers of
contract workers are increasing at an alarming speed. The contract workers engaged in core
operation jobs in BHEL is around 30% of the total workforce and if all types of deployment of
contract workers, mostly in permanent and perennial jobs are taken into account, they are almost
50% of the workforce. In the petroleum sector also, the contract workers are almost 80 per cent
of the total workforce. The situation is similar in other PSUs too.
In short, we should understand that the contract workforce has already attained a huge
strength in numbers. On the other hand, due to deployment of contract workers in core
operations activities, the contract workers have become indispensible in the entire process of the
16
industry concerned without which the process will not move ahead. In other words today
contract workers possess most effective striking power.
It is shocking that the contract workers are made victims of despicable exploitation in the
matter of service conditions including wages and benefits, social security and safety totally
negating the huge contribution of contract workers in the production, productivity and
profitability of the PSUs. They are paid abysmally low wages as compared to the regular
workers doing the same job. This gap in wages has been increasing after each round of wage
revision for the regular workers. As per Annual Survey of India (ASI), combining all industries,
in the public sector, the wage differential between supervisory and managerial staff over direct
workers and contract workers were 88% and 328% respectively, while in the same sector the
wage premium earned by direct employees over contract workers was 165%.
However, since the situation is further deteriorating day by day, the need for intensified
propaganda and campaign has become our most important organizational task. Though in all our
meetings including conferences of CITU and also in the meetings of PSU Coordination
Committee, the need and urgency for organizing the contract workers and the need for the
regular workers’ movement to take up the task on a war footing have been discussed and
unanimous resolutions taken. In coal, steel, BEML and some other industries, some initiatives
have been taken and some achievements are also made. But, overall, in the majority of the areas
in public sector, not much advancement could be made by our unions in this direction.
Now if our unions in the PSUs do not take urgent initiative everywhere to organize the
contract workers and integrate them with the regular workers’ movement in PSUs, it would be
suicidal for the regular workers’ movement as well since they will lose their striking capacity
without the contract workers’ support and thus become irrelevant in the days to come. Moreover
after the change of Government at the centre, the onslaught on the very existence of public sector
is going to mount in a big way, the indications of which has already started pouring in. Given the
trend of contractorisation and outsourcing of operational jobs in most of the PSUs today and the
dominant role being occupied by the contract workers in overall operation of the PSUs, without
their participation and involvement no struggle by only regular workers in PSUs can generate
effective pressure either on the management or the Govt. Therefore, both in the struggle to
defend the public sector, in micro and macro-level and also in the struggle to defend the rights
and livelihood of workers in PSUs, contract workers’ active participation and involvement is an
indispensable necessity. This must be comprehensively understood by all of us and all our unions
must make this their topmost priority task to organize the contract workers, champion their
demands and build up struggle on the basic demands of the contract workers in the respective
units.
The issue of employee composition in the country, particularly the ratio of regular
workers and contract workers in big industries has attained a dangerous dimension with the
amendment of Apprenticeship Act, already discussed in details elsewhere in this note. Contract
workers have legal right to organise trade unions and raise demands and demand right to
collective bargaining. They are covered by many labour legislations. But apprentices have no
such rights and coverage of labour laws. They do not get wage but only consolidated stipend.
Imagine a situation wherein contract workers are replaced by apprentice and even replaces to an
17
extent the regular workers. It is going to be ‘no worker, no wage no trade union’ heaven for
employers and ‘hell’ for the toiling masses.
This issue must be thoroughly discussed in the meeting and concrete organizational and
movemental tasks must be charted out. The divide between the contract and regular workers in
the trade union movement must be removed else the total trade union movement in PSUs shall
turn out to be toothless and ineffective. The situation is continuously boiling, either we regulate
to canalize into democratic trade union movement or it will burst and inflict injury on the unity
and struggle of the public sector workers.
Employment and Average Annual Emoluments in CPSEs
Year
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Employees (in lakh)
(Excluding contract
workers)
16.14
15.65
15.33
14.90
14.40
14.50
14.04
Total Emoluments
(in crore)
52586
64306
83045
87792
98402
105648
116375
Per capita
Emoluments
(Rupees)
325869
410898
541716
589210
683347
728606
828882
From the above table we have to understand two very important factors. One, this table
solidly substantiates our serious concern regarding distorted composition of employees with
continuous reduction in regular worker and ‘reverse pyramid’ directional change in ratio between
regular workers and officers. The second point is the continuously growing income inequity in
PSUs. The sky-high gap between regular workers and contractor workers is certainly a disastrous
phenomenon. But we must not miss to note the continuously widening gap in wage, perks and
facilities between regular workers and officers. It is to be noted here that the above table shows
combined emoluments of both regular workers and officers. The break-up between both the
categories will depict one aspect of the dirty face of capitalism and need to fight the capitalist
system to establish socialism.
Struggle for Revival of Sick PSUs
Sickness in PSUs continued to be a serious problem before the public sector trade union
movement which got continuously aggravated during the entire neoliberal regime. The
successive Governments at the centre during the neoliberal regime attempted to allow a natural
death to those sick PSUs and in that process, number of PSUs were wound up. In certain cases,
privatization was chosen to be the route for survival and revival of some of the sick units like
Modern Bread, number of hotels under Hotel Corporation of India, Jessop, Paradip Phosphets,
HCL, Hindustan Zinc Ltd etc but even after privatization, most of them, barring a few did not
remain operational, and whichever are still functioning, they are not at all in sound position. And
the private owner is trying to close down operation to convert concerned industrial estates into
18
real estate business. This clearly proves that privatization cannot be the way for survival and
revival of sick PSUs.
The Public sector trade union movement, despite all limitations and with the help of trade union
movement as a whole have still been struggling in various sick PSUs for survival as well as
revival. There are some success stories too. BHPV in Vizag could ultimately be saved through its
merger with BHEL. Bharat Refractories Ltd and Maharshtra Electorsmelt Ltd could somehow be
bailed out by SAIL. Heavy Engineering Corporation could finally be revived. And the biggest
success had been in IISCO, Burnpur in West Bengal, where almost a collapsing steel plant could
be saved from being sold out to private hands with its huge assets and finally the plant is now
reaching almost final stage of its modernization under SAIL. This had been possible through two
and half decades long determined and united struggles by all the trade unions of IISCO and Steel
Industry and CITU did play the frontline role.
We should also note that due to consistent intervention and follow up by trade union movement
and continuous initiative taken by our comrades in Parliament, Burn Standard Ltd was taken
over by the Railways. But, still now, Railways did nothing to revive and revamp the Burn
Standard and our union there are pursuing at all levels along with other unions so that the unit is
brought back to health. Similarly, the most recent development is the report of Hindustan Cables
being taken over by the Ordinance Factory Board under Defence Ministry. Com Basudev
Acharya, Vice President CITU had been pursuing this since long and during the previous
government, the then Defence Minister officially agreed to such take over in principle. After the
change of government at the centre, this report has come. Our union has to follow up the matter
seriously.
But still now number of sick PSUs around 60 in number, spread all over the country have been
struggling for their survival awaiting an uncertain future. The trade union movement in general
and public sector trade union movement in particular have always been raising their issues in
various forums and because of that they could not yet be closed down and for some of them
revival package have been or are being sanctioned by BRPSE.
As per Public Sector Enterprise Survey, BRPSE sanctioned revival package within PSU
framework for 13 PSUs, which were in different stages of implementation. In total since the
BIFR days, a total number of 47 sick PSUs were sanctioned revival packages with Government
assistance out of which 19 sick PSUs could finally turn around on date and started earning profit.
But still there are number sick PSUs like Tyre Corporation of India, Biecco Lawrie Ltd,
Hindustan Photofilms Ltd etc for which winding up orders have already been issued by BRPSE,
have still been making efforts for finding a way out for revival. The Public Sector trade union
movement must extend all support to their effort and trade unions in those units have also to play
a role in uniting with others and also garnering support of the local people and other mass
organizations to build up pressures on the Government for their revival.
Another issue needs to be flagged. Even after a revival package is sanctioned for a sick PSU, the
duty of the trade unions in that PSU does not end there. We must see and follow up that the
revival package sanctioned is properly implemented. There are number of such cases where
even after sanction of revival package, the concerned PSU had to again face winding up order
19
just because the revival package was not properly implemented and our union also did not follow
up the matter. Our movement must also remain cautious about this aspect of their responsibility
while fighting for revival of sick units in the respective PSUs. At the same time our public sector
unions at the state level must coordinate among themselves to make the issue of revival of sick
PSUs alive through joint programmes and struggles. It should not be left to the union of the sicl
PSUs alone
The Tasks and Struggles Ahead
There can be no second opinion that the two most vital task before our movement today
must be (a) to combat the attack on trade union rights and the onslaught of Labour Law
amendments pushed by the Modi Government directed to corner workers at the brutal disposition
of the capitalist class bereft of any labour law protection; (b) and of course we have to
demonstrate our determination in unprecedented scale to defeat the destructive move of Modi
Government to dissolve the effective entity of public sector in the country.
The Eleven Central Trade Union Unity Platform has already come forward to provide
totally united leadership to the entire workforce in the country to unleash a countrywide massive
movement to oppose and reverse the Government move on Labour Law amendments.
The joint Statement issued by the eleven central TUs is circulated to the participants of
this meeting. A National Protest Convention of Workers has been foxed for 15th September 2014
at the Constitution Club Annexe, New Delhi wherefrom next course of action shall declared by
the trade unions.
The CITU affiliated and the friendly unions in public sector must take serious initiative
not only to participate but certainly to play leading role in making the forthcoming struggles
against Labour Law amendments, rather dismantling, a decisive success. Our unions in PSUs
must take all out initiatives right now in involving other unions in all workplaces in order to
mobilize them in the programme of action to be declared in the convention on 15th September
2014.
Our fight against dismantling of public sector by the Modi Government through multiple
measures, both direct and indirect, including equity divestment of different dimensions must
reach the highest altitude. Comrades, IT IS NOW OR NEVER. Let us understand the
continued weakness in our fight shall act as input to Modi Government to push the policy of
privatisation. We must be alert that these days the dangerous ploy of ‘PPP model’ has become
panacea for the economic policy of the NDA Government of the day.
The immediate task must be to launch massive campaign against disinvestment among
the workers and man to man contact must be organised on the issue directly interacting with the
workers on the urgent need for militant action against disinvestment. It has to be patiently
explained to the workers that failure to go for decisive movement against disinvestment or on
contract workers’ issues exposes weakness of our unions before the Government as well as
before management.
20
Continuity of campaign and agitation with all seriousness, consciousness and dedication
involving all the permanent and contract workers in all the PSUs throughout the next couple of
months, if sincerely undertaken by our unions in their respective units can definitely achieve
participation of PSU workers in the forthcoming nationwide united struggle on vital demands
relating to PSUs also.
All our affiliated and the friendly unions in PSUs should make serious effort to organise
the contract workers in trade unions and/or establish coordination with contract workers’ union if
it is already there. Our union should seriously campaign on contract workers’ vital demand on
“same wage for same work” among the regular workers and involve them in agitation
programme on that demand from the platform of regular workers’ union after formally
presenting that demand to the respective management. On this issue campaign must be followed
up by agitation and taking up the issues with management in a consistent manner. We can
formulate our demand to pay minimum wage of the company, i.e., entry-level wage of regular
workers for the contract workers instead of minimum wage notified by the government and
intensively campaign over such demand to be followed by agitation.
We are circulating a letter written to all of our PSU unions on 2nd August 2014 on
the question of organising young workers and bring them in the forefront of trade union
movement with planned initiative. The letter is self-explanatory. Only one or two unions
have responded and almost all have prepared not to respond to our letter. Such attitude of
our unions can be well termed as undemocratic, total indifferent on organisational matters,
casual approach on vital issues of our movement, unpardonable omission and what not.
This matter must be discussed with due emphasis.
Decisions of the Ranchi Meeting
We are appending below the full text of the operative part of our last Ranchi meeting. Obviously
we should review in this meeting as to how far our unions have implemented the decisions and
their observations thereon. Based on such exercise we have to work out our next course of
activities from this meeting.
1) ‘Anti-Disinvestment/Privatisation Day’ to be observed all over the country on 23rd
September, 2013 in all CPSUs by organizing Demonstration, Gate Meeting, Procession etc
and to send Fax to Prime Minister, Minister of Coal and Minister of Petroleum & Natural
Gas & urging to stop all disinvestment moves including Coal India and Indian Oil
Corporation.
2) Join in full strength at state-level demonstration on 25th September 2013 called jointly by
All Central Trade Unions and Industrial/Service Sector Federations
3) Participate in the ‘International Day of Action’ at the Call of World Federation of Trade
Unions (WFTU) on 3rd October 2013 being jointly organised by all Left Trade Unions in
India
21
4) All India Convention demanding Revival of Sick CPSUs at Kolkata sometime in October
2013
5) State level and Industrial Centre-level joint conventions of all CPSUs all over the country
against (i) Disinvestment/Privatisation (ii) Against Contractorisation and (iii) Demanding
Revival of Sick CPSUs during the months of September-November 2013
6) Trade Unions to organise a National Convention on the Issues of Contract Workers in
CPSUs
7) A two-day National Workshop of all trade unions on Organisational Matters in CPSUs
8) In order to facilitate and monitor implementation of the programmes of struggles and
strengthening of orgnisation a ‘Steering Committee’ with representatives from CPSU
unions to be constituted in consultation with State Committees of CITU and Federations
The above programmes were observed by some of our public sector unions as per reports
received by us but we did not receive reports from majority of our PSU unions. Wherever these
programmes were observed, the mobilization and participation in them indicate that not much
planned effort was made to reach common workers with the message of the programmes to rally
maximum number of workers. Comrades here should review their participation and observance
of the programmes already undertaken by us in the previous meeting and make concrete
suggestions on the programmes to be undertaken from this forum.
Self-Critically
The achievements and contribution of public sector industries are measurable under
different economic parameters and are well known to the people of the country and even to the
world about their invaluable contribution in post independence economic reconstruction of the
country.
Similarly the role and contribution of the trade union movement in the PSUs in our
country had been crucial and dynamic. It had pushed the trade union movement of our country
to a historic new phase and height. It had been termed that level of consciousness of the Indian
working class of the country was pushed from factory based local level to industry based
national level. In the matter of collective bargaining public sector workers played the role of
leading light in the country.
But it must be admitted that all those shines of the PSU trade union movement has come
under clouds to a huge extent over the years. Particularly with the aggressive change in the
policy perspective concerning public sector under the doctrine of Neo-liberalism and consequent
attack on public sector, our trade union movement have gone by great default. In retrospect, it
needs to be admitted that the public sector trade union movement failed to fully cope up with and
combat the ideological offensive of neoliberalism and its impact on mass of the public sector
workers.
22
Distinctly leading role of PSU unions and its due appreciation by the working class of the
country has been relegated to back-burner. Today PSU unions are looked upon as a separate
labour aristocratic strata secluded from society and habitants of high wage island.
Our aim is to ignite debate and discussion on this fact or allegation which also must ignite
serious self-critical introspection of the initiative, activities and understanding of the leading
force in the public sector trade union movement like ours. But it is bound to be long drawn and
wide spread, protracted, continuous and on sustained basis.
But in the meantime, given the critical juncture the working class movement of our
country is faced with emanating from the neo-liberal onslaught of Modi Government, as may be
understood from the discussion in this Background Note, the public sector trade union movement
is standing before a challenge as well as opportunity to rise to the occasion in providing
leadership from the front in the forthcoming fight against attack on TU Rights and Retrograde
Amendments in Labour Laws and pervert and pervasive drive to dismantle public sector in our
country.
Swadesh Dev Roye
CONVENOR
23