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SESSION FOUR: THE EFFECTS OF GLOBALISATION ON WORKERS AND TRADE UNIONS
The Study circle met on March 30th,1999 at 12.00 noon at the Regional Workers Education centre Indore (MP), India.
The Facilitator Welcomed the Participants and apprised them about the schedule of the today’s session. Accordingly, the group discussed the Reports of Pakistan, Philippines, Korea and Australia in light of our own report of the session III alongwith Moderator’s comments :
Before detailed discussions the group considered the Moderator’s comments and our reply is affirmative that the discussions were wide spread amongst the participants .We are from different groups e.g. Workers Education, Trade Unions Economics, Politics ,etc etc. but each of us is related to the workers’ well being and curious about the Process of Globalisation , New liberal Agenda , SAPs and TNCs.
We do agree that the Strength of TUs and rival Capitalists have created problems in imposing Standard SAPs, .at the same time and the same way . In India, Political and people have been very sensitive in this field and have resisted.
We are not very conversant about the Korean CHAEBOLS and would like to know more about these from our Korean Friend YOON !
We further agree that strong monopolies have been attacked by TNCs.
As regards Strategy we concur with our Pakistani friends that TUs should form larger Active alliances at National, Regional and International levels. Though there are, but there is a need for strong initiatives.
1. REPLIES:
AUSTRALIA:
# We are collecting information about NESTLE wages and conditions though not very different .
# Yes, there are some plans for privatisation of Government maintenance sector but the employees will remain with the Govt. and work will go in Private hands.
KOREA:
# IMF/WB are not treating us differently but we are not solely dependent on them.
#There are wage agreements and laws . Workers are generally satisfied still demand better. There is great disparity among the wages of Organised and unorganised sector and proportion may be 4 to 1 or 5 to 1.
# Social safety net ? yes for General Public we do not have any insurance but the Provision of Old age Pension, Widow Pension are there though rediculous amount is paid to them. But for workers we have Employees State Insurance scheme, Employees Provident Fund and other benefits prevail for organised sector employees.
DON, MUSADIQ, YOON and TONY ! Thanks for replying our Questions !!
2 : THE EFFECTS OF GLOBALISATION ON WORKERS & TUs.
The group read short quotes and concluded after discussions that the process of Globalisation has started ,the liberal agenda is being introduced ,the SAPs are under consideration, TNCs, IMF/WB game is on full swing . In this state of affairs it is the. Main concern of TUs and the Workers that How to Survive ?
The Social and Political Institution have lost the faith of People and have become meaningless upto certain extent whereas the Economic institutions are becoming slaves. With this perspective the group considered four sub-themes and reached to the following conclusions :-
A) How have workers experienced the is sues outlined in reading:
Yes, Trade Union movement in India has been very strong and has been instrumental in the Independence Movement of the Country. Now it has weakened and is not as it was 20-30 years ago.
The Employers discourage Union activities in their organisation .There are many Unions in most of the organisations, Business Houses, Industries . The presence of many Unions ranging between 2 to 30 and some times even more Unions in one establishment eases the problems of the Employer because of their infighting Even in the Government organisation there are many Unions.
The ego of Union leaders stops them from collective bargaining .Even the workers keep doubts about their intentions.
Dismissal of Workers :
Normally workers are not dismissed from services but the sickness of the industry or closure of the Unit or establishment , they loose their jobs.
Similarly , with new Technology , Use of manpower is being reduced .
Likewise the Government s are not recruiting new workers on the vacant posts or even after retirement or resignation. The Country has a huge workforce which is generally used by unorganised sector.
Unequal distribution of wealth: This is Universal and present in India as stated.
B) IN WHAT OTHER WAYS WORKERS & TUs HAVE
BEEN AFFECTED BY SAPs IN OUR COUNTRY?
Effects on Work place, community and Society.
The workers are being affected by the closure/Privatisation of the establishments viz. Jute Mills, Textile Mills ,Small Industrial Units Selling/privatisation of State owned corporations. The Job insecurity is prevailing. The process of Trade liberalisation (in a restricted manner), cuts in Government expenditure particularly on Education, Health and Public services, withdrawal of subsidies on food grains, fertilisers, Petrochemicals, production of goods for export reduction on import duties, fall of the currency in comparison to US $ have affected not only workers but the community and Society as whole. In our last report we submitted that the The Financial Institutions and investors have lsot700 Million Rupees in Country’s Share Market.
C) How have workers and TUs been affected by TNCs in our Country ?
The TNCs have entered in a very restricted area allotted to them by the Government where either the Governmental agencies were mismanaged or the domestic agencies were weak/absent or foreign investment was required. They are creating a spirit/feeling of competition in Market.
This has resulted in closure of some of industries but the local businessmen and Industrialist are seeking/entering in collaboration with foreigners. The Workers and Trade Unions are in a strange situation- how to cope with the TNCs ?
D) What are effects of Globalisation. How Workers and TUs experience at Local and National level.
The Workers and TUs were realising Mismanagement and Monopoly of the Management or Industry/Capitalist. They were facing threats of loss of jobs and felt that With Globalisation ,Liberalisation and TNCs new ventures and opportunities will be open for them . New Jobs will be created and problem of unemployment will be solved upto certain extent. But new Ventures came with New Technology requiring very little manpower. Their hopes have failed. They feel that there have been many shortfalls and failures in planning. The Time factor and specialisation aspect was not kept in mind with possibility of expansion.
However, The people are in a trap. They are understanding and realising in a very slow manner. They are comparing it with local capitalist. The lust for imported things ,better things is there. But they are in a fix. Rest in next report.
Next meeting : April 15th,1999 : 12.00 Noon
Venue : Regional Workers Education Centre,Indore(MP)
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