TUs-Government stand-off dominate 2005 / Dec 27, 2005 / New Kerela
From Indiapensions
TUs-Government stand-off dominate 2005
New Delhi: The stand-off between the government and the Left-dominated central trade unions on the cut in EPF interest rate, the proposed labour reforms to bring in the 'hire and fire' policy and the delay in bringing a Bill for social security for the 370 million unorganised workers marked the year 2005.
The protests by the trade unions against the anti-worker policies of the government reached a crescendo on September 29 when work in industries came to a standstill in an All India Protest Strike by about 50 million workers.
The deadlock was further witnessed at the Indian Labour Conference (ILC), held after a gap of two years on December 9 and 10 wherein the trade unions rejected the proposal of the government to usher in flexible labour laws.
Prime Minister Manmohan Singh, who inaugurated the ILC, stressed: I urge the trade unions to recognize that in a world where demand and technology are undergoing rapid changes and firms must adjust or perish, we need reasonable flexibility in the labour market. But the trade unions argue that it would lead to introduction of the 'hire and fire' policy through the backdoor.
However, the positive outcome of the ILC was that there was a unanimity on bringing a comprehensive Bill on the social security and service conditions of the unofficial labour force in the country.
The ILC has decided to set up a Committee to prepare a final and comprehensive Bill for the unorganised workers.
The stand-off was further visible with the government's move to introduce a new pension scheme for central and state government employees where the workers had to contribute with no assured benefits as available in the existing scheme.
The government has, however, not gone ahead with its move to inroduce the Pension Regulatory and Development Authority Bill in the winter Session of Parliament because of the resistance from trade unions and Left parties.
Opposition from trade unions also forced the government to drop the Small and Medium Industries Development Bill, which envisaged self-certification by the employers on implementation of labour laws in their estbalishments.
The trade unions, while appreciating the government's decision to enact a law guaranteeing 100 days of employment to one member of a rural household, stressed strict implementation of the law and further improvement in the coverage.
Another distinct feature was the resistance against the government's move to offload 10 per cent of equity in the state-owned BHEL. Not only that, the trade unions launched a countrywide agitation against the decsion and the supporting Left parties even suspended their participation in the UPA-Left Coordination meetings for a full four months.
Finally the government had to shelve the move. The resistance also sent a signal to the ruling coalition that the trade unions would not accept at disinvestment of profit-making PSUs.
The year witnessed the unified condemnation of the brutal lathicharge on Honda workers in Gurgaon on July 25 by the police, which brought to the fore the question of the fundamental right of workers to organise themselves for collective bargaining. The Honda workers had blamed the company for denying them the right.
The television images of police batons coming down on unarmed workers "exposed" what the trade unions called a "collaboration of bureaucracy, employers and police to suppress the workers' right" to ask for internationally recognised rights and service conditions.
Because of pressure of trade unions, the government had to withdraw a move for non-implementation of labour laws in Special Economic Zones.
The Standing Committee on Labour returned on December 20 the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment Bill asking the government to hold discussions with the trade unions.
The year also witnessed the coming together of all central trade unions, including the Rashtriya Swayamsevak Sangh-affiliate Bharatiya Mazdoor Sangh, on the issue of fixing interest rate on Employees' Provident Fund at 9.5 per cent from 8.5 per cent for this year and the government's move to "dilute" labour laws with a view to attract FDI.
Opposition from the central trade unions forced Union Labour Minister K Chandrasekhar Rao to say that he would consult the Prime Minister on restoring the EPF interest rate. The stand-off is set to continue in the New Year.
