AN extended meeting of the trade unions of Central Public Sector Undertakings (CPSU) was held at BTR Bhavan, New Delhi from August 30 to 31. Around 150 delegates from about 40 CPSUs comprising major sectors like coal, steel, oil and natural gas, power, heavy engineering, telecommunication, electronics, shipping, port & docks and construction, and Bangalore-based PSUs representing around 50 trade union organisations from 14 states participated in the meeting.

The meeting was presided over by CITU general secretary Tapan Sen and A. K. Padmanabhan, president of CITU, delivered the inaugural address. The convenor of the Coordination Committee, Swadesh Dev Roye, presented a Background Note elaborating upon the socio-politico-economic situation in the country emanating from the aggressive push to the suicidal neo-liberal economic policies and Hindutva agenda by the Narendra Modi Government. Thirty-three delegates took part in the deliberation and Tapan Sen delivered the concluding speech. A long-drawn programme of action was unanimously adopted in the meeting. A few salient points edited from the Background Note are appended below very briefly:

The 16^th Lok Sabha election has produced an unprecedented and 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. This will have a serious bearing on the life and livelihood of the common people, and the working class in particular.

MODI GOVERNMENT’S AGGRESSIVE

PUSH TO NEO-LIBERALISM

It is a fact that the UPA-2 Government led by the Congress party had been continuously working against the interest of the toiling people and the 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 entire trade union movement of the country they did not succeed much. But with the Narendra Modi Government at the Centre, the socio-political-economic policy of the country is being tracked to a more dangerous direction.

Within three months of the Modi dispensation assuming power, peace and harmony in our society have come under serious attack. Communal incidents are being perpetrated 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 the modern civilised secular society in the country are being pushed to reverse by the revivalist forces. For that matter the 16^th Lok Sabha election results and the installation of the Modi Government can be termed as a counter revolution in the Indian society. The working class is the product of science and technological revolution. The working class is destined to lead the transformation of capitalist society to a socialist society. Therefore, it has the historic responsibility to fight and finish the forces of revivalism.

The role played by the corporate-controlled media – both print and electronic – in organising mind-boggling, aggressive and huge expensive campaign focusing Narendra Modi, the unimaginable flow of fund from big corporate houses, both domestic and foreign, and the unprecedented scale of money spent in the electioneering by 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 obliged to formulate and pursue.

HUGE CONTRIBUTION OF PUBLIC

SECTOR IN OUR ECONOMY

The atrocious manner in which the shine of the public sector is blackened with the ulterior motive to put it 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.

It is worth appreciating that the public sector contributed significantly to India’s resilience against the impacts of the global meltdown of 2008, which originated in the USA and engulfed the entire capitalist world. Much against the critical observation by vested interests about the competitiveness, the CPSUs strode and have been striding ahead to take the challenges head-on.

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 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.

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. [Courtesy: Kalideo Scope].

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 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 the Modi Government is in competition with the erstwhile UPA-2 Government in their resolve and dedication to the doctrine of neo-liberalism and market controlled economic order. Now if the UPA-2 Government totally diluted the whole concept of planned economy in which the public sector played dominating role, the Modi Government surpassed the UPA-2 in their dedication and total commitment to neo-liberalism by altogether abolishing the PCI itself.

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 the public sector in our country. With the Janata Party Government of Morarji Desai, the journey slowed down but recouped to an extent subsequently. The Rajiv Gandhi era (1984-1989) marked the thrust towards liberalisation and open market regime 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 neo-liberalism.

From the discussion below the most destructive role of the 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 of public sector.

The country has already experienced the naked anti-public sector and avowedly pro-private sector role of the last NDA Government. Now that record of the previous NDA Government is poised to experience extreme height with Narendra Modi at the seat of Prime Minister and that too with BJP having absolute majority in Lok Sabha. Therefore, it is a situation of ‘do or die’ 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 then Congress Government with Manmohan Singh as the then Finance Minister the most atrocious attack on public sector came during the last NDA Government.

The NDA government introduced the Ministry of Disinvestment 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 the UPA-I Government under the pressure of Left parties from May, 2004, the Ministry 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. However, during the period from 2001-02 to 2003-04 (NDA Government) the 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.

Disinvestment Drive of Modi Government

The Narendra Modi Government is poised to push the biggest ever divestment drive. 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 Government estimated to collect Rs 43,425 crore from selling stake in PSUs and another Rs 15,000 crore from the sale of residual stake in previously divested PSUs. Finance minister Arun Jaitley has said, “Our divestment programme is progressing as per schedule.”

Meanwhile, it is a matter of severe indignation that SEBI (Security and Exchange Board of India) has come out with stipulation (with what legal authority?) that a minimum 25 per cent 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, the Government is working out the options for implementation process of the SEBI decision.

Major PSUs under the SEBI Axe 

Attack on Right to Trade Union & Safeguard under Labour Laws

The Modi-led NDA Government, soon after assuming office, has initiated move in abnormal haste to amend all important labour laws in favour of the employers. Several state governments have also initiated such measures. Such anti-labour steps were apprehended as the big business houses that had spent huge funds for the election campaign to see that the 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 on these issues, the disastrous amendments are being pushed through without any consultation with trade unions.

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 the 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. It must be combated resolutely. The claim of the employers’ class that 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. 

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.

Gross Distortion in the Ratio of - Regular Workers:Contract Workers:Officers

We have been thoroughly discussing this burning issue in all our meetings with added emphasis including the immediate past two meets at Bangalore and Ranchi. 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 operation activities, the contract workers have become indispensible in the entire process of production/services of the industry concerned. In other words today contract workers possess most effective striking power.

It is shocking that the contract workers 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%. 

Employment and Average Annual Emoluments in CPSEs

It is important to note that the above 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 hugely widening gap in wage, perks and facilities between regular workers and officers continuously. 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 the need to fight the capitalist system to establish socialism.

Now consequent upon amendment of the Apprenticeship Act the issue of contract workers is poised to throw a new challenge to trade union movement. One of the hidden agendas of employers’ class behind the move is to replace contract workers by apprentices.

Given the growing powerful numerical and professional (contribution to production and productivity) strength of contract workers and also the ever growing militant struggles of contract workers in the country the message to the employers’ class is clear and loud – the days of crude exploitation of contract workers without any resistance are over. On the other hand, the Modi Government is in rat race for attracting investment without caring for the economic sovereignty of the country and life and livelihood of our people. Modi is committed to accept any demand of the capitalist class facilitating them further exploitation of labour, minimising labour coat and maximising profit. It is this dangerous combination of the corporate power and the political party in power which has brought such anti-labour amendment to the legislation.

Atrocious advantage to the employers’ class by replacing contract workers with apprentice may be understood from the fact that the contract workers have legal right to organise trade unions and raise demands and demand right to collective bargaining. They are covered by several pieces of labour legislation. 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 to an 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. 

The Tasks and Struggles Ahead

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 and (b) to defeat the destructive move of the Modi Government to dissolve the effective entity of public sector in the country.

The joint statement issued by the Eleven Central Trade Union Unity Platform has opposed and resolved to reverse the Government move on diastrous Labour Law amendments.  Further a National Protest Convention of Workers has been fixed for 15^th September at the Constitution Club Annex, New Delhi wherefrom next course of action shall be declared by the trade unions.  The public sector workers must take serious initiative not only to participate but certainly to play leading role in making the forthcoming struggles against Labour Law amendments a decisive success. 

Our fight against dismantling of the public sector by the Modi Government through multiple measures, both direct and indirect, including equity disinvestment of different dimensions must reach the highest altitude. We must be alert that these days the dangerous ploy of ‘PPP model’ has become panacea for the economic policy of the NDA Government.

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.

Further, all of our affiliated and 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.

Programmes of Action Adopted in the Meeting

In reiteration of the organisational principle of Campaign-Propaganda-Agitation to culminate into Action the meeting has unanimously adopted the following programmes:

1)                 Propaganda centric massive campaign to be conducted amongst public sector workers at grass-root level by distributing leaflets, display of banners and posters, organising group meetings, shop floor level meetings, residential complex level meetings etc exposing the various facets of the drive by the Modi Government to dismantle the public sector in the name of restructuring/joint-venture and various other means including disinvestment through multiple routes. The central slogan should be ‘SAVE PUBLIC SECTOR – SAVE INDIA’. The programme of propaganda/campaign should be observed through a fortnight long period from September 15-30, 2014

2)                 As culmination of the above noted campaign programme ‘Anti-Disinvestment Week’ to be observed during 13^th to 19^th October 2014 through demonstration, dharna, gate meeting, procession and on the last day of the week ‘Black Badge’ wearing while on duty and sending Fax on union letterhead to prime minister and the concerned Department Minister with a copy to CITU Centre. Text of the fax: “STOP DISINVESTMENT OF PSU SHARES, REVIVE SICK PSUs WITH FINANCIAL/POLICY SUPPORT” 

3)                 Mass Signature Campaign on ‘Save PSU, Save India’ to be conducted among workers and their family members and also among the public in general with a target to collect one crore signatures beginning from the ‘Campaign Fortnight’ till the end of Anti-Disinvestment Week. 

4) Conduct wide-scale ‘Awareness Campaign’ among mass of the workers highlighting the disastrous impact of the anti-labour amendments of labour laws by the Modi Government and some state governments and mobilise workers for countrywide struggles under the banner of eleven Central TU United Platform to be declared from the National Protest Convention of Workers on 15^th September 2014 in New Delhi.

5)  Participate in the ‘International Day of Action’ at the Call of World Federation of Trade Unions (WFTU) on 3^rd October 2014 being jointly organised by all Left Trade Unions in India highlighting the menacing rise in unemployment and the role of trade union movement   

6) CITU and Coordination Committee will hold a three-day Trade Union   Education Camp/workshop of the Leaders of our unions in PSUs.