Globalisation

GLOBALISATION AND THE GOVERNMENT EMPLOYEES

- M.K. Pandhe

The policies of the World Bank on the structural adjustment programme, popularly known as globalization, has hit hard the working class all over the world. It seeks to abolish the role of the Government in establishing the so called welfare state. The concept of market economy, which allows market to decide everything has resulted in a cut throat competition among the employers to cut down the cost, which mainly resulted in cutting down the cost of labour. Drastic reduction in manpower, restraint in enhancing wages and terms of service conditions of the employees and enhancing the workload on the workers became chief weapons in the armory of the Governments and the employers in dealing with the employees.

The ban on recruitment in Govt. services and refusal to fill up a large number vacancies was resorted to a large scale to cut down the manpower requirement in the central and state services. Increasing resort to outsourcing of jobs and engaging contractual and casual employees at low wage levels was considered a part of national policy as cost cutting measure. The sprawling growth of extra-departmental employees in postal services was a part of this retrograde policy framework.

In railway establishments a large number of jobs were handed over to contractors like catering services, maintenance of railway stations etc. while the new development programme visualizes public-private-partnership model which gives bonanzas to private sector operators at the cost of public funds. The privatization of train services in under consideration of the Government like the model operating in European countries which will further bring down the requirement of regular employment in the central services. The freight corridor has already offered several concessions to the private sector operators.

The Defence units the ordnance factories are being earmarked for corporatisation which is a step towards ultimate privatization. The orders given to the ordnance factories are being cut down and handed over to the private parties. The employment in ordnance factories is gradually getting reduced due to this policy of the Govt.

About 70 per cent of our defence equipment is being imported by the Govt. of India many of which can be produced indigenously. The DRDO’s are not given suitable opportunities to develop indigenous research with a view to make India self-reliant in the matter of defence production.

The Report of the Kelkar Committee which has strongly advocatedfirm steps to privatize defence production units in India and drastically reducing the role of public sector undertakings in defence production.

THREAT TO SOCIAL SECURITY

Curtailment of social security measures for the workers has been a global phenomenon. It has particularly affected the developing countries in a severe manner. As noted by a paper prepared by the World Bank, “The international financial crisis has severely affected the value of pension fund assets worldwide. The unfolding global recession will also impose pressures on public pension schemes financed on a pay-as-yo-go basis, while limiting the capacity of governments to mitigate both of these effects.” The paper further noted that, “….decline in asset prices can still materially reduce retirement benefits.”

In Europe where pension funds are already privatized, the condition was extremely precarious. According to a study on the impact of the economic crisis on the private pension fund has pointed out the following losses in private pension funds:

Poland-5.95 billion Euros, Hungary-2.112 billion Euros, Czech Republic – 210 million Euros, Slovakia – 195 million Euros, Croasia – 146 million Euros, The Baltic States – 100 million Euros, Bulgaria – 95 million Euros, Slovema – 80 million Euros(One billion Euros – Rs.6500 crore).

The Government of India’s attempt to convert the present defined benefit pension scheme with defined contribution pension scheme is a direct attack on the retirement benefit of the one crore Govt. employees all over India. The Pension Regulatory Authority Bill which was kept in cold storage in the first UPA Government regime due to the pressure of the left parties and Government employees trade union movement is being brought again for consideration by the Government. Many sections of the Bill have been already implemented by the Govt. through executive order by the Government of India. Several State Governments have endorsed this approach of the Central Government.

There is urgent need to strengthen the united movement of the Central Government employees so that these attacks are stalled by resistance by the employees movement.

Several lakh pensioners of the Central and the State Government employees are getting organized because they are facing several problems. The Government has not recognized pensioners association as trade unions, though they have relations with the Government as retired employees.

There is urgent need to strengthen the nationwide untied movement of the pensioners so that the legitimate interests of the pensioners are protected. With steep rise in prices of essential commodities, several pensioners are finding it difficult to maintain their livelihood and attempts should be made to grant relief to them. The discriminations done to the employees who have joined service after 2004 and have to pay contribution towards pension benefit also needs to be properly addressed.

DOWNSIZING OF MANPOWER

As noted earlier, Downsizing of man-power was one of the key policy measure adopted by the Govt. of India. During the NDA regime led by Atal Bihari Vajpai 2 per cent reduction of manpower every year was called upon keeping the target of 10 percent reduction in a period of 5 years. The UPA Government continued the same policy and further reduction of manpower was achieved. The total employment strength of Central Government employees stood at 38.92 lakhs in 1995 which came down to 30.9 lakhs in 2005 and further declined to 28.5 lakhs in January 2008.

According to Sixth Pay Commission the total employment in railways was 13.11 lakhs, Defence 3.66 lakhs, Postal Deptt. 2.40 lakhs and Home Deptt. 6.77 lakhs was reported which indicate the drastic reduction of manpower in Central Services. In State Services since globalization was introduced, the manpower declined from 70 lakhs to 60 lakhs i.e. reduction of over 12 per cent and the process of further reduction in continuing.

Two major and Core Conventions of the International Labour Organization namely, Freedom of Association and Protection of the Right to organize (1948) No.87 and Right to organize and Collective Bargaining Convention (1949) No.98 have not yet been ratified by the Government of India on the plea that these rights cannot be granted to Govt. employees and policemen. Though they have not been ratified the ILO looks into complaints filed by national trade unions and enquire about the violation of these Conventions.

Despite over six decades of India’s independence the Central and the State Government employees in India have not got this right so far. However, the countrywide movement of the Central and the State Government employees through their bitter struggles have been able not form Associations and even organize strike actions in support of the common demands of the working class. The participation of the Confederation of Central Government Employees Unions, All India Railway men’s Federation, All India defence Employees federation and All India State Government Employees Federation in the activities of the National Campaign Committee of Trade Unions and later in the Sponsoring Committee of Trade Unions have asserted their right to organize. They even have joined the strike struggles despite ban on them even by the Supreme Court. The dividing wall between the Central and State Govt. employees movement and the General trade union movement has been torn asunder through long drawn movements.

However, several restrictions on T.U. activities are still in operation. The undemocratic recognition rules and curtailing several aspects of freedom of Association, while Presidential power to dismiss an employees without assigning any reason still continues to exist in our constitution. The right of collective bargaining is denied to them and the Civil Service Conduct Rules framed by British imperialism continue to be operative in its basic form. The system of confidential reports is still hovering over the Government employees which gives arbitrary powers to bureaucrats to be vindictive against an employee.

The Central and the State Government employees movement must raise their powerful voice against the draconian rules prevailing in India. While fighting for their immediate pressing demands the struggle for unhindered T.U Rights must be strengthened at a national level. A joint movement by all the unions in central services on this issues with the support of the mainstream T.U. movement can effectively highlight their just struggle compelling the Govt. of India to change its basic approach so that full T.U. rights are enjoyed by all the Govt. employees in India.





THE RETROGRADE SIXTH PAY COMMISSION

The Report of the Sixth Pay Commission clearly reflects the policies of globalization. At the outset it refers to “increasing globalization of trade and industry with greater emphasis on increasing investment and transfer of technology.” “An imperative and urgent needs exists to harmonize the functioning of the Central Government organizations with the demands of the emerging global scenario.”

The terms of reference of the Sixth Pay Commission reflects the need for adopting to the new changed global scenario. The Report clearly pointed out, “The Government machinery has to learn to adopt to these changes and to leverage knowledge and technology for better performance under stricter fiscal discipline and better delivery mechanisms. The Terms of Reference of the Commission suitably reflect this changed imperative”. (Page6)

The Pay Commission then talks about excessive job security available to the Govt. employees and “cumbersome rules act as hindrance to easy exit of Government employees” (Page 8).

In Keeping in tune with the policies of globalization the Sixth Pay Commission recommended “introduction of contractual appointments for selected posts, particularly those requiring high professional skills. Under this, suitable persons from outside can be inducted in Government” (Page 9). Thus advocates of private sector and supporters of policies of globalization could be inducted in Government service to accelerate the so called reform process. To clarify the policy further the Commission observed”. After the expiry of the tenure, the concerned employee may renegotiate the contract or leave. This will allow salaries that are broadly comparable to the private sector with similar terms of engagement to be paid in the Government.”

The Commission thus wants the Government to copy the policies pursued by the private sector undertakings. The private sector pays higher salaries to the executives and lower pay to the subordinate staff. It wants the same policies to be pursued by the Pay Commission. It therefore substantiate this view with the following statement.

“This will enable the Government to pay a higher and need-driven remuneration depending on the particular expertise of the concerned employee which will also stall the efflux of such employees to the private sector at a time when Government needs their experience”.

The logic of market economy that the salaries of the employees would be decided by demand the supply concept. The lower level employees are plenty in supply and hence should be paid less while the executives are in short supply and hence should be paid more. The Pay Commission has therefore recommended much higher salaries for the top heavy bureaucrats while low rise to the employees of junior categories. This policy is also reflected in abolition of group D category and allotting these jobs to contract workers or outsourced them to private parties.



PRIVATISATION IN DEFENCE
Several multinational companies in collaboration with Indian Companies are planning to produce defence equipment in India and the Kelkar Committee has welcomed this development. It will further reduce the importance of departmental ordnance factories and DRDO’s. Naturally the strength of employees in these establishments is likely to be further curtailed, if this policy is allowed to be carried forward.

It is also a matter of concern that Israel has become the second largest supplier of defence equipment to India. Making a common cause with a country which suppresses Palestine liberation fighters for their own motherland. The import of radar from Israel ahs adversely affected production of radar equipment in Indian Public Sector Company Bharat Electronics. These policies are adversely affecting the growth of indigenous defence industry in India.

The recent notification of the Govt. of India on Defence Procurement Procedure 2009 which has already become effective from 1st November 2009 allows private Indian Companies to enter into joint ventures with any foreign manufactures that they choose and can bag defence contracts of manufacturing and supplying all types of equipments required for the armed forces. It also permits private companies in India to compete with DRDO ordnance factories and Defence public sector undertakings to absorb foreign, technology and undertake indigenous manufacture. The All India Defence Employees Federation ahs already condemned this step as a measures against security of the country. It will also drastically bring down the job potential of public undertakings in defence industry.
PUBLIC PRIVATE PARTNERSHIP

In Railways all the developmental activities are planned to be undertaken through public private partnership model which is nothing but a drive towards privatization. In the name of developing world class railway stations, private sector undertakings will be given reckless facilities to make profits at the cost of departmental undertaking. Privatization is also involved in freight corridor concept. Already in railways several services are privatized. Even allowing new private trains is under consideration of the Government. While the strength of regular railway employees is gradually being reduced low paid jobs are being created in the railway network which is greatly affecting the quality of railway services all over the country. The extra hours of work still performed by the loco running staff is adversely affecting the safety of railway operation.

CERTAIN ERRONIUS TRENDS
Certain erroneous trends prevalent among the Central Government Employees movement adversely affect the united movement. A section of the movement indirectly support the policies of globalization and do not advocate any line of struggle.

The Joint Consultative Machinery in the Central Services gives limited rights to the Government employees organization. The rules and regulations have given hand to bureaucracy in dealing with the legitimate grievances of the employees which has the final say in every aspect of its functioning and decision making.. The recognition rules are arbitrary and Government has acquired powers to interfere in the functioning of the unions.

The Central Administrative Tribunal mechanism is extremely dilatory and only limited number of issues can be referred to it. Most of the decisions go against the interest of the employees and there are rare cases when employees get justice in it. In some cases the awards given by the tribunal do not get implemented by the Govt.

By and large the Government employees movement is critical of the functioning of JCM as well as CAT. However, there are trends in the movement who strongly defend the limitations of the system and does not advocate any improvement.

The Central and State Government employees have right to vote and naturally it involves right to hold a political opinion. However, Government employees have no political and democratic rights while their service continues to be at the mercy of the President of India.

Whenever the mainstream of the Central Government employees movement join the united movement of the working class in India, certain section remains out of the movement on the plea that they cannot join the call for one day strike. Certain leaders of the movement prefer to remain in good books of the top officials and if they carry some movement they do so in consultation with the bureaucracy so that the tempo of the movement remains within the confine limits prescribed by the officials. This fails to bring out sufficient pressure on the Government to grant more T.U. and democratic rights for the Central and State Government employees. Exposure of such elements from the Central Government employees movement is an essential recruitment of building a powerful unity of the Govt. employees movement.

NEED FOR POSITIVE ATTITUDE TOWARDS PEOPLE’S ISSUES

Central and State Government employees who work in welfare schemes are coming in contact with common people. A section of the employees do snot behave properly with the people who come to represent their grievances before them. Some of them are also indulging in corrupt practices who is giving a bad name for the entire Government employees.

While the major source of corruption is at the Ministerial and top bureaucratic level they do not come in contact with common people. Their pay masters are big businessman from the corporate sector and rural rich strata while the lower level “babus” are directly coming in contact with the common people.

Quite often the Govt. Scheme give symbolic benefit to the common people but at times dissatisfaction of the people is not directed against the scheme itself but with the attitude of the Govt. employees.

Drastic down sizing of manpower and non-filling of vacant posts has added to the workload of the existing employees which are responsible for the inordinate delay in granting relief to the needy people. However, people cannot see the shortage of manpower but they prefer to blame the Government employees.

Outsourcing of jobs has also affected the quality of service but the high and mighty bureaucracy is not in a position to pay proper attention to this aspect. Since outsourcing of jobs becomes a cost cutting measures it is receiving a major policy thrust in the Govt. services.

The Central Govt. employees movement has to educate the employees for adopting a pro-people approach and take a helpful attitude in dealing with the public grievances. It has to fight against all anti-people trends prevailing in administrative apparatus so that common see a positive approach of the Govt. employees towards peoples issues. It is also a duty of the Govt. employees movement to explain to the people about the shortcomings of the Govt. schemes so that they understand the real nature of the official schemes about which through lot of unrealistic propaganda is made by official agencies in the electronic and print media spending public funds. It will do away the impression that the Govt. employees are revenue eaters and constitute a high wage island strata who do not do much work but get high level of living standard and social security at the cost of public funds.

Over 250 autonomous bodies in India are drawing wages at part with Central Pay Commissions and are governed by the Civil Service Conduct Rules. These rules were originally drawn by the imperialist Government but after independence their basic thrust continue to be operative against the democratic rights of the employees. Strengthening of the trade union movement in these sectors is extremely importance since they constitute a good chunk of the working class in India.

Though they are called autonomous bodies their autonomy is extremely limited and the advisory bodies in many of them have limited role to play. The bureaucrats essentially control their operations which can be properly checked only if there is a strong trade union movement in this sector.

FORWARD TO CONSOLIDATION AND STRENGTHENING OF STRUGGLES
The Government employees movement in India is at crossroads to-day. The Central Government in India which is to-day wedded to the policies of globalization is determined to curtail trade union and democratic rights of the working class in general and Government employees in particular. The dwindling strength of the employees is already creating pressure for decline in T.U. membership. However, the movement has shown considerable growth due to enhancement of the overall consciousness of the Government employees. The rising curve of their struggles is witnessed all over India despite attempts to keep it at low key by the disruptive forces in the movement.

Consolidation of the movement of all sections of the Government employees is of paramount importance today if they have to protect the gains so far achieved consequent to their valiant struggles in the past. The Confederation of Central Government Employees and Workers and the All India State Govt. Employees Federation have played a significant role in mobilizing larger and larger sections of employees in the common struggle against globalization and for T.U. Rights.
These struggles have to be intensified by achieving greater unity among the ranks of the Govt. employees. The destiny of the countrywide movement of all sections of the Government employees is very much dependent on the intensity of the struggles they would be launching in the forthcoming period.