Special Advisory: Nationwide Trade Unions Strike. September 2 nd, 2016

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1 Special Advisory: Nationwide Trade Unions Strike September 2 nd, 2016 Table of Contents Why the strike?... 2 Participating Unions/Associate bodies... 2 Central Trade Unions... 2 Associate Unions... 3 Transport Associations/Unions... 3 Political Support... 4 What could be the likely impact?... 4 What happened during last year s strike?... 6 Impact on business... 6 Impact on metro cities... 6 Impact on states... 6 Recommendations Special Advisory Trade Unions Strike, Sept 2 nd

2 Why the strike? Ten central trade unions across India have announced a one-day nationwide strike, on September 2 nd, 2016, to protest against the government's unilateral labour reforms and "anti-workers" policies; up to 150 million workers are expected to take part in the strike on September 2 nd. In addition, several associations from sectors, such as telecom, railways, banks, insurance, electricity, postal, coal, plantations, road transport, and scheme workers, will also be joining the strike. The mandatory two-week notice in the case of essential services like transport and power has already been served by the local units of the unions. Unions have been opposing certain proposed labour law amendments which allow hire and fire, make it tougher to make labour unions, and dilute the existing social security net available to the workers forum. Except for emergency services including health, railways and defence, all other worker unions including those of bank employees, transport workers, educators as well as industrial sectors both in public and private such as power, coal, textile, automobile, steel, oil will be on strike. The trade unions have decided to go ahead with nation-wide strike, rejecting, the government's 42 per cent hike, proposed earlier this week, in minimum wage to Rs 350 per day, as "completely inadequate". Calculated monthly, it comes to Rs 9,100 minimum income (for 26 days) which is way below the unions' demand of Rs 18,000. Meanwhile, 14 workers organisations and federations from different parts of the country have come together to form an alternative to the CTUOs. They have formed a new platform, christened Mazdoor Adhikar Sangharsh Abhiyan (MASA). MASA will, however, join the all-india strike on September 2 nd, The worker organisations which have joined hands under MASA have representation in 20 states, including Delhi, Tamil Nadu, Haryana, Karnataka, West Bengal, Uttarakhand, and Punjab, among others. Participating Unions/Associate bodies Central Trade Unions Indian National Trade Union Congress (INTUC) affiliated with the Congress party All India Trade Union Congress (AITUC) affiliated with the Communist Party of India (CPI) Hind Mazdoor Sabha (HMS) Centre of Indian Trade Unions (CITU) affiliated with the Communist Party of India (Marxist) All India United Trade Union Centre (AIUTUC) affiliated with the Socialist Unity Centre of India (Communist) Trade Union Coordination Committee (TUCC) Self-Employed Women s Association (SEWA) All India Central Council of Trade Unions (AICCTU) affiliated with the Communist Party of India (Marxist-Leninist) United Trade Union Congress (UTUC) affiliated with the Revolutionary Socialist Party 2 Special Advisory Trade Unions Strike, Sept 2 nd

3 Labour Progressive Federation (LPF) affiliated with the Dravida Munnetra Kazhagam (DMK) RSS-affiliated Bharatiya Mazdoor Sangh (BMS) will not join the proposed strike. BMS has called the Centre's decision to issue notification on bonus payment as a historical victory for Indian workers. Associate Unions All India Federation of University and College Teachers Organisations (AIFUCTO) has endorsed the strike. All India Bank Employees Association (AIBEA) has confirmed that around five lakh bank employees and officers in banks across India will join the All India General Strike on September 2 nd. Reserve Bank of India workers and employees have decided to join the strike. United Forum of Regional Rural Bank (RRB) Unions have decided to join the nationwide general strike. About one lakh officers, employees and daily wage sub-staff working in all the 56 regional rural banks would participate in the strike. Work at all the 21,000 branches and controlling offices of the banks would be affected. All major trade unions in Goa under the banner of Goa Convention of Workers have decided to back the nationwide general strike call to be observed on September 2 nd. Government employees in Haryana have announced that they would join the nationwide strike. Coal India workers will go on the strike to mark their protest against further divestment and strategic sale in the sector. All-India Insurance Employees Association will also be participating in the strike. All India Democratic Women s Association (AIDWA) has supported the all-india general strike. In Assam, the Bao-Ganatantric Mancha, Assam (Left Democratic United Forum, Assam) and the Jatiya Aikyamancha, Assam have decided to support the strike. The partner organisations of the Jatiya Aikyamancha include the Hill State Demand Council (Karbi Anglong), Sadou Asam Ahom Sabha, Asam Sangrami Mancha, Ganamukti Sangam, Assam, Sadou Asam Matak Sanmilan, BTAD Nagarik Adhikar Mancha, Assam Jatiyatabadi Yuva Parishad, Tai Ahom Yuva Parishad, Sadou Asam Deuri Chattra Santha, Deori Jatiya Parishad, Krishak Mukti Sangram Samiti, Chattra Mukti Sangram Samiti, Sadou Asam Anusuchita Jati Chattra Santha and Sadou Asam Nibonua Parishad, among others. Meghalaya Joint Council of Trade Unions and Associations (MJCTU&A), Thma U Rangli Juki (TUR) and its associated organisations will join the nationwide workers strike. Railway workers will not strike work but express solidarity through demonstrations and processions. Transport Associations/Unions Public transport services will also be affected as many auto rickshaw unions in cities such as Delhi, Hyderabad and Bengaluru have decided to keep off the roads. 3 Special Advisory Trade Unions Strike, Sept 2 nd

4 Bangalore Metropolitan Transport Corporation (BMTC) and autos will remain off road from 6 am to 10 pm. However, taxis and trains are expected to be available throughout the day. In Hyderabad, auto rickshaws and TSRTC buses will go off roads. Nearly 80,000 auto rickshaws and 10,000 RTC buses will be off roads and nearly 50,000 RTC workers will be participating in the strike. Tamil Nadu State Transport Employees Federation (TNSTEF) has extended its support to the all-india strike called by trade unions. Karnataka State Road Transport Corporation Staff and Workers Federation will be participating in the strike. Intra-state and inter-state bus services will remain suspended from 6 am to 6 pm. Private transport unions have not confirmed if they will be supporting the strike. Volvo buses to Bengaluru airport will not function. Fly Bus from Bengaluru airport to Mysuru will also not ply. Andhra Pradesh State Regional Transport Corporation employees' union has served a strike notice on the RTC management, expressing its decision to join the nation-wide general strike. The transport sector in Haryana, Uttar Pradesh, Rajasthan and Punjab are expected to be completely closed. Ground handling employees working in Cochin International Airport Limited (CIAL) will be on strike. Political Support The Left parties have supported the strike call. The government of West Bengal has decided not support the strike. Kerala government has extended support to the trade unions. What could be the likely impact? Sectors that are likely to be affected widely include coal, power, cement, textiles, oil, aviation, banks, insurance and post office. Public transportation and banking services are likely to severely affected. Autos and taxi unions are also likely to stay off the roads, which would have further effect on the transportation services, especially in the metro cities. In the states that have a strong union presence such as Kerala and West Bengal, violent protests may be witnessed. Businesses also may remain shut in these states over fear of violent agitation. Employees with private as well as government organisations could be delayed for work or even be absent due to the lack of transportation. The strike is unlikely to disrupt work at manufacturing units owned by most private sector companies. However, many industrial and commercial establishments including factories could shut their units because of fear and threat of vandalism by trade union leaders and their supporters. 4 Special Advisory Trade Unions Strike, Sept 2 nd

5 Schools and Colleges could remain open as there has been no official declaration of holiday. In Karnataka, bandh call has been given, still now, for Kolar and Ballari. Business operations are expected to take a hit, causing losses not just for the companies but also for the overall economy of the country. Delhi NCR In Delhi, large-scale protests may be held around Jantar Mantar in Central Delhi. The unions may also decide to hold some kind of protest march, which could impact traffic in Central Delhi area. Similar protests may be held in other metro cities. All workers in the Gurgaon-Manesar automobile belt will participate in the strike. Over 35 lakh workers in Haryana s industrial areas will be on strike. The Haryana State government employees have decided to join the strike, so there would be some impact on the functioning on the government offices in the city. Earlier this month, the employees had held a massive rally in Karnal at Huda grounds against the government policies. Similar rally could be held in Gurgaon; the likely location of which could be Devi Lal Stadium in Gurgaon. As of now no demonstrations or rallies have been declared, but the possibility of it cannot be ruled out. If this happens, some impact of traffic situation is likely, especially if the rallies are held around NH8. The employees are not known to resort to road blockades like the Jat agitators or taxi cab drivers, but the possibility of such an event in the future, however low, cannot be ruled out. During last year s strike, In Delhi, commuters faced problems as a large number of autos and taxis remained off the roads. Such form of protests by the autos and taxis in the Delhi could be seen this year too, which can have an impact on the travel of employees from Delhi to the Gurgaon office on the day of strike. Bengaluru Karnataka State Road Transport Corporation Staff and Workers Federation have declared their support for the strike. This could have significant impact on the public bus transport in the city, as was seen during the three-day transport strike in July. Footfall on metros would increase; the demands for app-based cabs could also surge. Autos and taxis unions in the city have not yet supported the strike, but the possibility of this remains. If this happens, it could have a further impact on the transport system of the city. In Bengaluru, some form of demonstrations could be held at Freedom Park, Vidhan Soudha and Mekhri Circle among other locations, which have witnessed protests in the past. Such protests can have an impact on the flow of traffic around these areas. Kolkata In Kolkata and other parts of West Bengal, police action may be witnessed against the protestors as the government of Mamata Banerjee has decided not to support the strike. Given the strong presence of trade unions in the state, demonstrations and rallies are expected to be held, especially in Kolkata. Localities like Jadavpur (once a Left stronghold) and the industrial belts of Howrah and Hooghly could see heightened activities. Protests could also be held at Esplanade in Kolkata. 5 Special Advisory Trade Unions Strike, Sept 2 nd

6 What happened during last year s strike? Normal life was affected in various parts of the country as ten central trade unions went on a day-long nationwide strike, on September 2 nd 2015, to protest against changes in labour laws and privatisation of PSUs. BJP-backed BMS and NFITU stayed away from the strike. Impact on business Nearly 150 million workers in banking, manufacturing and construction, backed by 10 major unions, stayed away from work. Industry group ASSOCHAM estimated the strike cost the economy $3.7 billion. The day long strike had reportedly most affected the transport and banking operations among other services. The All-India Defence Employees' Federation and its affiliated unions which included Civilian workforce of 41 defence ordinance factories, 52 DRDO labs, naval dockyards, military engineering services as well as defence workshops and depots had participated in the strike. Railways was not part of the strike. 18 state-wide employee unions had supported the bandh. Impact on metro cities Public transport, including auto-rickshaws and taxis, across major metros like Delhi, Kolkata and Mumbai did not function. Clashes were reported in some states. In major metros such as Kolkata where trade unions are dominant, partial impact was seen on suburban trains while shops, markets and business establishments in most areas remained closed. In Kolkata, sporadic incidents of trouble were reported across some localities like Jadavpur (once a Left stronghold). Some clashes were also reported in the industrial belts of Howrah and Hooghly (in places like Konnagar). In Delhi, commuters faced problems as a large number of autos and taxis remained off the roads. Transport services in Mumbai remained unaffected, as suburban train services, autorickshaws, and BEST city buses were operating normally despite the nationwide strike. The strike called affected normal life in Bengaluru and other parts of Karnataka. Transport services were severely affected as government transport workers had participated in the strike. Impact on states In Kerala, public and private bus services, taxis and autorickshaws were off the roads. In West Bengal, in some places protests turned violent with bandh supporters clashing with the ruling Trinamool Congress workers and the police across different places in the state. 6 Special Advisory Trade Unions Strike, Sept 2 nd

7 In Karnataka, the strike affected normal life in Dharwad, Raichur, Davangere, Bellary and Hassan. In Tripura, vehicles did not ply on the roads, while markets, banks, educational institutions were closed. CITU members organised small rallies on railway stations, as train services were also severely affected. In Goa, private buses and state-run Kadamba Transport Corporation Ltd (KTCL) buses remained off the roads. Various banks and insurance firms joined the strike call. Taxi service in the state were also affected. In Odisha, train services were disrupted at several places as protesters blocked tracks near railway stations like Cuttack, Bhubaneswar, Sambalpur, Bhadrak, Chhatrapur and Khalikot. Shops, markets, business establishments, educational institutions, banks and insurance and other offices remained closed in most areas during the strike. Vehicular movement was disrupted as passenger buses, trucks and other vehicles remained off the roads. Public transport was partially affected in Punjab, Haryana and Chandigarh. Public transport at several places in Haryana was affected as employees of Haryana Roadways also went on strike. In Punjab, several employees of Pepsu Road Transport Corporation (PRTC) also held protest at various places in the state. In Punjab, though factories remained opened, the attendance of labour in the units was thin, which impacted the overall industrial production. Banking, transport, and other services were hit in parts of Rajasthan as a result of the nationwide strike. Normal life was affected in Assam with railway tracks blocked at several places, private buses off the roads and banks remaining closed in response to the nationwide strike. Daily life was not much affected in Bihar, while banking services in the state were partially hit during the country-wide strike. Transportation and banking services in Andhra Pradesh and Telangana came to a standstill during the day-long nationwide strike. The strike evoked a more lukewarm response in Tamil Nadu, and normal life was not affected. The nationwide strike failed to create any significant impact in Arunachal Pradesh. Recommendations Advisable to plan your bank-related activities, accordingly. Localised protests may be held; advised to stay away from the protest sites to avoid any incidental risks. Public transport is likely to be affected in most parts of the country; commuters are advised to make alternate travel arrangements. Cater for heavy demand for private transport services on the day of the strike. Recommended to use the carpool system, if possible. Cater for delays or absentees of employees, especially the ones dependent on public transportation. Follow the local developments to stay updated on the ground situation End of the Report Special Advisory Trade Unions Strike, Sept 2 nd

8 2016 All rights reserved. The information contained herein is the Intellectual Property of MitKat Advisory Services Pvt. Ltd. Any unauthorized use of this content, in any form, violates our rights. Disclaimer: This report is based on analysis of open source information. Recipients must monitor local environmental conditions to ensure security and business continuity. MitKat Advisory Services makes no representation or warranties with respect to the contents or use of this document, and specifically disclaims any express or implied warranties or usefulness for any particular purpose of this document. MitKat Advisory Services Private Limited Mumbai 511 Ascot Centre Sahar Air Road Andheri (E), Mumbai Delhi NCR Suite# 009, 4 th Floor Time Square Sushant Lok 1 Gurgaon Bengaluru # 127, 2 nd Cross 6th Block Koramangala Bangalore (80) Singapore 101 Cecil Street #23-12 Tong Eng Building Singapore (069533) Special Advisory Trade Unions Strike, Sept 2 nd

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