Special Advisory: Nationwide Trade Unions Strike September 2 nd, 2016 Why the strike? Trade unions across India have announced a one-day nationwide strike on September 2 nd to protest against the government's unilateral labour reforms and "anti-workers" policies. 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. What could be the impact? As many as 10 central trade unions have decided to go ahead with their call for a one-day pan-india strike on September 2 nd. In addition, several associations from sectors, such as telecom, railways, banks, insurance, defence, 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. Sectors that are likely to be affected widely include coal, power, cement, textiles, oil, aviation, banks, insurance and post office. Public transportation services across the country are also expected to be severely hit. According to the President of the Centre of Indian Trade Unions, up to 150 million workers are expected to take part in the strike on September 2 nd. What are the changes in the labour law? Under the proposed Industrial Relations Code Bill 2015, the employers with up to 300 workers would not require government permission for retrenchment, lay off and closure. Similarly, there is the small factories bill, which seeks to exempt units with less than 40 workers from 14 labour laws. These units will be able to buy provident fund and health insurance products for their workers from open market. Thus they would not be required to subscribe to social security schemes run by EPFO and ESIC. Last year, the government had formed an inter-ministerial panel headed by Finance Minister Arun Jaitley to hold "threadbare discussions" with representatives of unions on their 12- point charter of demands and other issues raised for recommending measures to address those issues. However, after few rounds of meeting with the trade unions to resolve issues, the panel has not discussed any issue with them after September 2 nd trade unions strike last year. 1 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com
What do the unions want? Their 12-point charter of demands includes stop on foreign direct investment (FDI) in different sectors, disinvestment of the government s stake in PSUs, price rise, and implementation of labour reforms without proper tripartite consultation. In addition, they have also demanded: Containment of unemployment through concrete measures for employment generation. Strict enforcement of all basic labour laws without any exception or exemption and stringent punitive measures for violation of labour laws. Universal social security covers for all workers. Minimum wage of not less than Rs 18000/- per month with provisions of indexation (for unskilled worker). Assured enhanced pension not less than Rs 3000/month for the entire working population (including unorganized sector workers). End of the process of contracting permanent/perennial work, and payment of same wage and benefits for contract workers as that of regular workers for the same and similar work. Removal of all ceilings on payment and eligibility of bonus, provident fund and increase in quantum of gratuity. Compulsory registration of trade unions within a period of 45 days from the date of submitting application and immediate ratification of ILO conventions C-87 and C-98. 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 Labour Progressive Federation (LPF) affiliated with the Dravida Munnetra Kazhagam (DMK) Associate Unions All India Federation of University and College Teachers Organisations (AIFUCTO) has endorsed the strike. 2 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com
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. Karnataka State Road Transport Corporation Staff and Workers Federation has served intimation letters to four state government-owned road transport corporations (RTCs), saying that their employees would abstain from duty on September 2 nd and participate in the nation-wide strike. 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. Tamil Nadu State Transport Employees Federation (TNSTEF) has extended its support to the all-india strike called by trade unions. 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 on September 2 nd if their demands were not met. Coal India workers will go on a nationwide strike on September 2 to mark their protest against further divestment and strategic sale in the sector. RSS-affiliated Bharatiya Mazdoor Sangh (BMS) remains ambivalent on lending support to the other central trade unions (CTUs) for the proposed strike. However, the BMS, in no uncertain terms, has stated that it strongly condemned the centre s attitude of neglect towards labour. Incidentally, BMS, now the country s largest Central Trade Union (CTU), had last year withdrawn from the nationwide strike call following assurances from the government on redressing their grievances in six months. BMS is, currently, highly critical of the government though. Political Support Left Front Chairman, Biman Bose, after a meeting with 17 Left Front parties in late July, had said that they would support the all-india strike called by the central trade unions on September 2 nd. Finance Minister Arun Jaitley met with the leaders of the RSS-affiliated BMS in early August. However, the meeting remained inconclusive and another round of meeting is scheduled to be held on August 22 nd. What could be the likely impact? 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. 3 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com
Employees with private as well as government organisations could be delayed for work or even be absent due to the lack of transportation. 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. As of now, there are no reports of railway services being part of the strike. Business operations are expected to take a hit, causing losses not just for the companies but also for the overall economy of the country. 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. 4 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com
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. 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. 5 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com
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-------------- 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 - 400099 +91 22 2839 1243 Delhi NCR Suite# 009, 4 th Floor Time Square Sushant Lok 1 Gurgaon 122002 +91 124 455 9200 Bengaluru # 127, 2 nd Cross 6th Block Koramangala Bangalore 560095 +91 (80) 2550 3300 Singapore 101 Cecil Street #23-12 Tong Eng Building Singapore (069533) +65 9222 5030 6 Special Advisory Trade Unions Strike, Sept 2 nd www.mitkatadvisory.com