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Venue: Regional Workers Education Center, Indore
Date: March 15, 1999 Monday
Time : 2.00 to 4.30 P.M.

• Facilitator welcomed the Participants and Presented the Moderator’s comments along with the reports of Australia, Philippines Session one Report of Pakistan.

• The Group started discussions on the comments made by the Moderator and the questions made by the counter parts.

• The group felt that features of Globalization are present in all countries and India is not an exception but these varies in degrees for example.

1. The selling of holdings of the Profit making corporation/Public Sector Undertakings, opposed by the Unions.
2. The workers’ unions also oppose the privatization of the Government owned corporation ventures.
3. Government expenses are being cut drastically.
4. Deregulation are extended to some level.

• As regards questions or curiosity of Moderator :-

• We have already submitted in the last and other reports that the size of Country, 25 States, huge population, industrial growth achieved in past years of Independence both in Private and Public Sectors has reduced the effect and force of liberal Agenda.

• Like Tony,

• I may mention that some things are cheaper e.g. A chemical was sold @ As 170/- Per kg. (4 $) but the China sent the same chemical to India which was sold @ 90/- Per kg (about 2 US $). This proves that indigenous Private sector Industrialist has suffered because he was earning bigger profits.

• Many capitalists have incurred losses due to trade liberalization, but they have their own ways and means. The big and medium size companies are amalgamating themselves and combating unitedly.

• Though during 1991-1998, 2,62,000 factories were closed and about 80 million workers became unemployed / underemployed. The exchange rate of US $ has gone up from Rs. 18 to 43 for one dollar during the period. Indian Financial Institution have lost 7,00,000 million rupees in share market. The fiscal deficit of the Government has gone upto 9,10,000 million rupees. The lending rate of Banks is between 17% to 22%. Private lending rates are about 25 percent.

• The non-convertibility of Indian rupees has save the economy upto certain extent.

• Further , we would like to say that so far our National Government is not becoming outdated and TNCs and agencies of the World Bank/IMF etc. are just trying to take over which appears difficult. The National Government is still playing decisive role.

• The issue of Union density I replied that every 3^rd worker is member of a union. The details of membership are in the Country Profile. The reason on this small proportion is absence of Unions in Agriculture Sector.

Replies

Yes, this ‘scavenger’ Those who are working with the Local Self Government or privately, widely engaged in sweeping/cleaning/sanitary profession. They have an All India Union which looks after their well being. There is a commission appointed by the Union Government to recommend measures for their upliftment. There are various scenes of the state governments for their upliftment so that their children can join some other profession in place of cleaning streets and toilets.

Some small Industries engaged in manufacturing have their Association. They are also sufferers of liberalization process because of competition. They are employers.

Nestle, is in field of milk powder, coffee, tea, cereals etc. Their local competitors are Amul, Brook Bond, Lipton, Tata, and other locals.

Raw material is local. The workers are both on wages and labor costs.

The group read collectively both the papers " The Rise and Rise of TNCs" and chart of SAPs thereafter group took up all the 4 questions one by one and the conclusions of deliberations are as follows :-

The process of Globalization and liberalization started in 1991 under the Minority Government of Shri P.V. Narsingha Rao and the Finance Minister Dr. Manmohan Singh – an economist, who was associated with World Bank.

The foreign investors were invited and allowed in the Country, Now most of Chief Ministers of Provincial Governments particularly Andhra, Bihar, Haryana, Gujrat, Madhya Pradesh, Orrissa, West Bengal Tamil Nadu etc. visited foreign countries and invited investors and industrialists, TNCs to come and start business/industry in their states.

Since unemployment is a grave problem and monopoly in local business/industrial houses resulted in exploitation of people.

The TNCs and foreign investors are given due concession in the field opened for them. They are also demand entry in many fields e.g. insurance etc. But TNCs have found a big market and trying very hard to enter in the areas where they can earn profits.

2. What are the implication of these policies on Workers and Trade Unions

The employment and apprehension of loss of jobs has weakened the Unions and their workers. Many companies have started process of Voluntary Retirement Schemes or golden shake hand. The unions in Banking and Insurance Sectors are really influential.

Structural Adjustment Programmes

1. Main features in our country

The World Bank and IMF and other financial Institutions have been imposing their conditions on the Govt. of India and Provincial Governments for an aid from them to overcome from financial crisis.

Indian Railways was asked to reduce the numbers of employees from to 16 lac to 9 lac in seven years in a phased manner. They asked Governments to close the Public Sector /Government owned enterprises not earning profit.

Process of Trade of liberalization is being implemented

The Government are allowing investment liberalization in selected areas only.

The process of cuts in expenditure in Governments both Union & State are in process.

The Government is withdrawing subsidies slowly i.e. on food grains, chemical fertilizer, cooking gas, petrochemical etc.

Production for export is encouraged

Basmati rice, Onions, Potatoes, Spices, Tea, Coffee, Soya cake Electrical Machineries / equipments, Sugar and many other things at the cost of Domestic Consumer are exported.

The currency though nor devalued, officially but have fallen in comparison in dollar.

2. What should be the strategy of trade union when negotiating SAP policies under the IMF/World Band and/or National Government.

The TUs in India have been raising the issues before the National Government. The Communist Parties and other left parties of the Country have been raising the issue in Parliament of the Country. The Government is conscious of the issue. The Unions press very hand on these issues.

When IMF/WB asked to reduce the number of employees, TU s reacted and he Government could not do so. Public agitates whenever a withdrawal of subsidies is proposed.

The Unions can always make a pressure on Governments and on WB/IMF through the Governments.

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