GLOBAL FINANCIAL CRISIS AND RISING WORKING CLASS STRUGGLES
- Dr. M.K. Pandhe
The global financial crisis in the capitalist world has convincingly shattered the dreams of those who advocated that capitalism alone can solve the problems faced by the people all over the world. Even the advocates of globalization had to admit that the crisis was due to the greed of handful top business tycoon who made them selves super rich by making the companies bankrupt.
Packages have been prepared to bail out these bankrupt companies and advocates of privatization had to argue for nationalization of toxic assets created by greedy capitalists. Despite spending trillions of dollars the global crisis has not seen the bottom level.
Working class all over the world has to bear the real brunt of the economic melt down. ILO has estimated loss of jobs to the tune of 5 crores as a result of this crisis which was estimated to be worse than 1929-30 global economic crises. However, this is gross under estimation. In India , to Associated Chamber of Commerce has estimated the loss of jobs would be about one crore! In U.S.A. alone the loss of job is estimated to be more than 30 lakhs so far and more loss of jobs is forthcoming.
The wage cut and deteriorating working conditions are being unilaterally imposed in several countries in the name of cutting costs. Lay offs and closure of units have become the order of the day. Social security benefits are being curtailed while even unemployment insurance schemes are under severe attack. The T.U. rights of the workers are grossly undermined to prevent working class from organizing resistance struggles against capitalist offensive.
Protest actions in India are on the rise. The CITU organized an independent demonstration on 20 January 2009 before Parliament which was attended by about 10 thousand workers. The demonstration of the Sponsoring Committee on 18 February 2009 was also participated by over 30,000 workers. In both the demonstrations the attacks on the working class due to global capitalist crisis was sharply condemned and relief to the working class was demanded. The struggles of the banks and insurance employees against further entry of foreign capital and privatization were also massive. The BSNL employees have conducted nationwide struggle against concessions given to MNCS in telecom sector. The Central Government and defense employees struggle against injustice done to them by the Sixth Pay Commission acquired a nationwide character. The unorganized sector workers, ASHA, Mid Day Meal workers have also launched protest actions against deteriorating living conditions.
MILITANT ACTIONS BY FRENCH WORKING CLASS
United movements of the working class in France resorted to massive actions on 29 January 2009 in protest against President Nicolas Sarkozy Government’s pro-capitalist steps in handing economic crisis in France and demanding pro-worker steps to grant relief to the workers rendered jobless. A countrywide strike was also observed against the so-called stimulus package which only helped the big financial shacks.
The militant struggle of the caterpillar workers at Grenoble in the first week of April this year attracted attention of the entire France . The workers while protesting against lay-offs and job cuts detained 4 managers for more than 24 hours while angry protest demonstrations were held by the workers against the policies of the management. This was the third time the workers resorted to such action.
Again in April in South Paris at 2M plant the workers detained the boss of the factory for two days to protest against the job cuts. A similar resistance struggle is spreading all over France .
On 19th March again another untied nationwide strike was organized in France which was much bigger action than the one organized in January last. The strike was in protest against Sarkozy Government’s anti-working class policies. According to reports over 30 lakh workers participated in demonstration held all over France . A special feature of the rallies on the day was the participation of general public in opposing Sarkozy’s policies.
Several hundreds of youth clashed with the police who were trying to obstruct the million strong march.. The Sarkozy Government gave 40 billion Euro package for the rich capitalists but no relief to the workers. The strike struggle was led by CGT the largest trade union of France .
The strike wave spread in French colonies. In Guadeloupe , a Caribbean island owned by France went on general strike demanding higher wages etc. from 20th January 2009 . The strike was united and was declared against “profitation” (combination of world profit and exploitation). The strike paralyzed the entire economy of the Island . In France , 65,000 strong demonstration was organized in support of the strikers demands. In Paris , on 19th January 20,000 workers organized solidarity demonstration.
On 16th February Sarkozy Government sent 5 thousand riot police to break the strike. The Govt. arrested thousands of workers but had to release them due to pressure of protest actions in France . After 44 days of strike on 4th March 2009 Government had to accept the major demands of the strikers and it was victoriously settled in favour of the workers.
In Martinique , another Caribbean island went on indefinite general strike on 4th February 2009 . Twenty five thousand strong demonstration was organized in support of the strike which parlayed the entire activity in the island. Several clashes took place between workers and police in the face of repressive action by the police. The workers achieved their demands as a result of strike.
Mass protest actions have been reported by workers in other French possessions in Pacific and Indian Ocean and in French Guyana ( Latin America ).
PROTEST AGAINST G-20 MEETING
A meeting of G-20 countries was held in London on 1-2 April 2009. On eve of the summit an international solidarity demonstration was organized on 28 March in which over 150 unions of different countries participated. Tens of thousands of participants shouted slogans “Down with Capitalism”, “Put People First” “Workers of the world united” “Drop the debt” “Smash Capitalism” “Fiscal Stimulus to create and preserve jobs”.
On 1st April against when G-20 meeting began a massive demonstration as organized before Bank of England workers broke police cordon and entered the bank premises. Workers expressed their anger against the policies of globalization.
In Germany in Frankfurt 15 thousand workers demonstrated shouting slogan “We will not pay for your crisis”. A coffin of capitalism was carried by some demonstrators saying it was time to bury capitalism. In Berlin several thousand workers joined the demonstration chanting slogan against globalization and capitalism. In Vienna, capital of Austria, 6500 workers demonstrated in the city centre carrying signs reading, “Capitalism Can’t be reformed” and condemned globalization policies. In Geneva , demonstration was participated by 200 persons who shouted slogan against capitalism and asking for change. In Rome about 6000 workers demonstrated in front of banks, insurance companies and estate agencies and threw eggs and smoke bombs at their offices. In Paris, several hundred protesters dumped a pile of sand outside the city stock market to mock island tax havens and had demolished it to express their anger against tax frauds.
WFTU CALL FOR ANTI-GLOBALISATION DAY
The World Federation of Trade Unions gave a call for observation of April 1, the day G-20 Summit scheduled to be held in London , as Anti-globalization Day all over the world. WFTU affiliates in different countries held rallies, processions and protested against the attacks on the working class in the wake of Global financial Crisis. In India the day could not be observed in all major centres due to prevailing Parliamentary election. However, meetings were held in Kolkata and Delhi to explain how capitalism has miserably failed and emphasizing that the working class should strengthen its struggle to destroy capitalist system and fight for establishment of a socialist society.
In Athens , where the WFTU headquarter is, a big demonstration was held by WFTU affiliates in Greece to protest against capitalist attempts to pass on the burden of the crisis on the working class. Rallies have been held in Cyprus , Syria , Africa and Latin American countries as a part of the observation of the protest day.
FERMENT IN LATIN AMERICA
A powerful upsurge is observed among the countries in Latin America where the working class is at the forefront in the struggle against U.S. imperialism. Most of the Latin American countries have openly opposed economic blockade against Cuba . The global financial crisis has severely affected the Latin American countries and job loss is adversely affecting the livelihood of workers. Massive demonstrations have been organized in Caracas , Sao Paulo , Buenos Aires , Santiago , Lima and other cities condemning globalization and opposing job losses for the workers. Voices to oppose capitalist system itself were also raised in these demonstrations. Militant trade unions are emerging in several countries posing serious challenge to the supporters of the policies of globalization and class collaboration.
The success of the Left wing forces in Nicaragua and El Salvador has given a powerful momentum to the anti-imperialist working class movement. The working class of Mexico is also opposing attacks on T.U. rights by the right wing Government. In Columbia , the trade union struggle against kidnapping and murder of T.U. leaders by Government sponsored armed gangs had intensified with solidarity movement in all the Latin American countries. The remarkable developments in the entire Latin American countries are inspiring the working class all over the world in their struggle against global capital.
RISING STRUGGLES IN EUROPE
Forty thousand workers in leading automobile manufacturer in Germany Volkswagen demonstrated in first week of April against European unions plan to scrap German law which gives protection to indigenous industry as a consequence of financial market capitalism. The trade union IG Metal criticized the policies of globalization and called upon the workers to intensify the struggle. Pro-globalization unions are also compelled to join the struggle due to deteriorating economic conditions of the working class.
In Iceland , long drawn protest movement by the trade unions against job losses and rising prices developed in February 2009. Due to collapse of three major banks consequent to the global meltdown, the agitation of workers was intensified since all the pension funds were deposited in these banks. The Government was compelled to nationalize all the banks to save the workers pension funds.
In Ireland , nearly one lakh workers marched in Dublin on February 21, 2009 in protest against Government announcement to cut back pay and pension benefits of public sector workers. “We won’t pay for the Greed of the Super Rich” was a leading banner in the procession. The Government had to nationalize leading bank. However, workers have threatened strike action after April.
The protest actions are reported even in Eastern Europe . Thousands of workers have taken to streets in Russia , Poland , Hungary , Latvia and Bulgaria in protest against cut in social security benefits.
In February 2009 massive demonstrations have taken place in Kiev , capital of Ukraine , when banks imposed restrictions on withdrawal of the money from the bank. The workers put up a tent in the city centre of the town demanding resignation of the Government. Truck drivers join the agitation by parking their trucks on the road and blocking the traffic.
In Kazakhstan on 10th December 2008 the workers in a metallurgical plant were laid off without notice when their back wages for several months were not paid. The workers went on indefinite hunger strike for several weeks and the struggle was supported by other workers which compelled the management to pay all the back wages.
In Portugal in January and February 2009 the teachers organized two nation wide strikes protesting against cut in Govt. funding for education. In Romania the workers organized protest against lay off by automobile companies. Several protest against lay offs have been reported in Japan and Indonesia .
Though the impact of crisis is most severe in U.S.A. the trade union resistance is extremely weak since dominant trade union leadership is not effectively opposing the capitalist offensive. As Detroit Workers Voice Discussion Group meeting on March 8, 2009 noted,
“The present economic crisis came upon us at a time of ebb in the working class movement. Strikes and protest movement have been at a very low level for a number of years. And now the workers are being told that there’s nothing can be done except grin the bear the lay offs, cutback in social services, and the handling out of hundreds of billion of tax dollars to the bankers, auto executives, loan sharks and speculations who have gambled and lost there own, and the U.S. although there have been small protests, and there are rumblings on the horizon. One thing that might encourage us to look around the world and see how the working people in other countries are responding to the crisis”.
Spontaneous protest strikes actions of the working class in U.S.A. are called “wild cat or unofficial” action and generally are not supported by the unions. On 12 January 2009 a militant demonstration was organized by automobile workers outside the Detroit Motor show opposing wage cut and curtailment of other benefits. General Motor, Ford and Chrysler have already cut more than one lakh jobs during the last 3 years. Though GM and Chrysler have received so far $4 billion relief package from the Government and another trance is forthcoming.
The trade union leaders however are only negotiating to reduce the suffering of workers. However, the condition of the bail out package is that the loan will not be given it the workers go on strike. The automobile owners have appreciated the stand of the union leaders for not resorting to strike action.
In the midst of growing class struggles all over the world the working class will organize rallies and strikes in all countries, which will certainly reflect the growing militancy in the trade union movement.
The class collaborationist leadership in various countries are finding it extremely difficult to carry forward their discredited policies among the workers.
The global financial crisis has created objective conditions for the militant trade union movement to expose the fallacy of the superiority of the capitalist system. The idea that capitalism can be reformed is not finding adequate number of takers in the working class movement.
However, there is urgent need to educate the working class that the alternative to capitalist crisis is only the establishment of the socialist system. The abolition of exploitation of man by man can be achieved only under socialism.
The deteriorating standard of living of the working class all over the world is resulting is growing discontent among them. What they need is effective leadership to organize their struggles that will hit the very existence of capitalist system itself. According to reports even the working class in former socialist countries are now realizing that they lost heavily after the dismantling of socialism in their country. The new trade unions are emerging to oppose the capitalist system and their strength is growing with deepening of the capitalist crisis.
Let the future movements reflect the firm determination of the working class in all the continents to resist capitalist attacks to oppose all imperialist machination to subjugate the world and fight for building a socialist society which alone can guarantee genuine liberation for all the toiling billions in the world.
Friday, September 18, 2009
Saturday, April 18, 2009
May Day Manifesto CITU
May Day Manifesto - 2009
On the occasion of May Day – 2009, the day of the international solidarity and unity of the working class, the Centre of Indian Trade Unions (CITU) extends warmest revolutionary greetings to the entire working class and the toiling people of the country and the world as a whole. The CITU re-affirms its commitment to class struggle and complete emancipation of the human society from all forms of exploitation.
Fraternal Greetings
The CITU conveys its fraternal greetings to the working class of the socialist countries for holding high the banner of socialism.
The CITU also greets the working class of the developed capitalist countries for their grim battle for right to employment, right to higher living standard and in defence of trade union rights.
The CITU conveys greetings to the working class of the developing countries for their struggles against of imperialist machinations against their nations and the people abated by the ruling polity of the respective countries.
The CITU extends solidarity with the Agricultural Workers in their struggles for achieving for better wages, right to land and livelihood throughout the year and comprehensive social security and welfare measures. The CITU also conveys fraternal support to the poor and middle Peasants in their struggles for right to remunerative prices, institutional credit at low interest and infrastructural and input support through massive public investment in agriculture. The CITU appeals to the working class to stand by the masses of peasantry and strengthen worker-peasant unity for conducting united struggles against the anti-people policies of the neo-liberal regimes.
50 years of Cuban Revolution & Latin American Countries
The Cuban Revolution continues to be a beacon of hope for the toiling people all over world .The saga of 50 years of the Cuban Revolution is saga of a constant battle against the US imperialism. The Cuban experience conclusively demonstrates that the fight against imperialism and the fight for socialism cannot be separated.
Socialist Cuba continues to be the source of political awakening of the people in the entire Latin-American continent. The electoral defeat inflicted on the pro-US ruling polities one after another in the countries of Latin America by the people under the leadership of the Leftist Forces have delivered a severe blow both to the neo-liberal economic policies.
Fight the Imperialist Machinations
On this May Day the CITU condemns the aggressive hegemonic machinations of the imperialist forces led by US imperialism. Iraq and Afghanistan continues under US military occupation. While in Iraq resistance is growing from within, the US occupation of Afghanistan is contributing in deteriorating political situation in Pakistan.
Israel continues to occupy Palestinian and Arab territories. The recent Gaza massacre by Israeli military forces is the latest examples of imperialist brutality against humanity. Moreover, the US is continuing with its conspiracy to attack Iran, Syria, DPRK (Democratic People's Republic of Korea).
On the issue of deployment of Missile Defence System in Europe, contradiction between USA and Russia is getting aggravated despite change of guard in US Administration.
Special Significance of This Year's May Day
This year's May Day shall be observed by the working class all over the world at a time when neo-liberal economic ideology under finance capital driven imperialist globalization has collapsed and the world is in the grip of a worst ever capitalist economic crisis since the Great Depression of 1930s. According to Cuban President Fidel Castro, "But it is not the usual crisis that happen every certain number of years, or even traumatic crisis of 1930; rather, the worst of all since the world started to pursue this model of growth and development."
True, neo-liberalism has been totally exposed and "the crisis has certainly destroyed the credibility of the neo-liberal ideology." The neo-liberal policies must be reversed and the struggle must march forward towards the ultimate goal of a new people oriented progressive social order. We must understand that the birth of a new social order over the graveyard of neo-liberalism is not automatic but depends on how far the working class movement would successfully organize the fight against the system in strict adherence to ideology of class struggle.
Impact of the Crisis on Working People
According to a ILO forecast in January this year, by the end of 2009 world unemployment could increase by 5 crore (50 millions) over 2007 alone reaching to 23 crore (230 millions) and besides that the number of working poor increasing by 20 crore (200 millions). Closure, lay offs, retrenchment, wage freeze, withdrawal or reduction in social security measures etc has been pushed to a dangerous dimension by the employers' class. Already 3.8 crore (38 millions) people have lost their jobs over last couple of months whereas job creation is going to be far below compared to what it was two years ago.
Private business houses are given huge financial support at the expense of Government exchequers in the name of bail-out packages. Huge concessions are doled out to the capitalist class through repeated reduction in capital cost, interst-rate, tax cuts etc. instead of job protection and employment generation. Around 32 governments, which had spent about 1.19 trillion US dollars on stimulus packages, had spent a meager 9.2 per cent on relief to suffering people. The so called stimulus packages are mainly aimed at heating the financial markets for the benefit of the speculation and finance capital and the amount flowing for real economy are a meager less than one fifth of the total financial bailout packages. The Director General of ILO has commented, "People, Families and Communities did not create the crisis and yet they carry the highest human costs. And they are legitimately protesting."
World-wide Wave of Strikes
The world is reverberating with Strikes and militant Street Demonstrations as well as different other forms of struggles participated by millions and millions of worker to protest against brazen neglect of toiling people by the Governments in handling the economic crisis. It is a situation of "billions for banks, pennies for people."
The countries under the European Union have witnessed the maximum protest action. Eight national Federations of Trade Unions of France have jointly organized two giant strikes in quick succession. On 29th January and on 19th March this year hundreds of thousands of French workers marched through the streets of the cities of France including Paris. The next action is on the May Day in which ten lakh (one million) workers will take out 200 rallies all over France.
On 13 February the Metal Workers’ Union had strike work in Italy. In solidarity with the strikers, "In Rome 700,000 blue and white collar workers marched side by side, in a unity that has not been seen in Italy for some time." Russia also witnessed militant street rallies in almost every major city in January. In Britain sectoral strikes took place in different industries. More than one hundred thousand workers from different Eurepean countries jointly staged millitant demonstration in London on 2nd April 09 at the venue of meeting of G-20 leaders including Obama, Gordon Brown, Sarkozy, Manmohan Singh.
Shocking Acts of the UPA Government
In our country the neo-liberal policies were introduced by the Congress Party-led Government headed by late Narsimha Rao with Manmohan Singh as Finance Minister. And the BJP-led NDA Government pursued the same policies more vigorously and caused maximum damage to the economy. During NDA regime, many blue chip capital rich CPSUs were sold out almost free of cost and involving deep corruption. After the defeat of BJP-led NDA in the hustings, the Congress party-led UPA Government that followed thereafter also tried to follow the same path leading to the present crisis.
In India the export-oriented sectors like textile and apparels, information technology and ITES segments, gems and jewelleries, leather, tea, automobile parts, construction, aviation etc. have already been seriously affected. Moreover Small and Medium Size Enterprises (SMEs) have been hit hard. There has been full or partial closure of industrial units, particularly the export oriented ones, then cut in production in the industries due to down turn in the market and resultant retrenchment, lay off etc. The official figure of job losses so far is only five hundred thousand but the actual figure of job-losses are many times more and this is increasing by leaps and bounds every day.
The bail-out packages of the UPA Government are still prioritizing on pumping funds to financial market to allure foreign and Indian speculators and not at all on protecting employment, promoting public investment in agriculture, infrastructure, public services and material production and expanding social security and public distribution system – which alone can improve purchasing power of the people, expand domestic market and save the national economy and the mass of the people from the onslaught of the crisis. By their perverse actions, the Congress led UPA has clearly demonstrated that their commitment is not to the people and the country's interest but to the big Corporates and their strategic partners in the imperialist block.
The Ongoing Parliamentary Elections
This year May Day is being observed by the Indian working class in the midst of the on going parliamentary elections. The political parties in the electoral fray are mainly identified into three combinations. A major set back suffered by the UPA and the NDA led by the Congress party and the BJP respectively is that some of their major constituents have deserted them. On the other hand the Left parties have succeeded in launching the Non-Congress non-BJP Third Alternative. Reckoning fact is that the right from the inception the Third Alternative is continuously strengthening with support from different political parties. With every passing day the possibility of formation of an Alternative Government without BJP or Congress party at the centre after the elections is becoming more and more brighter.
The country needs a Government at the centre that would completely reverse the economic policies which have created the crisis and adopt new policies concretely directed to address the sufferings of the people inflicted by the economic crisis. Need of the hour is protection of jobs, generation of new employment, stimulating domestic market by empowering the people economically. Speculative economic activities must be rejected. In other words, not only dismantling of public sector must be stopped but further strengthened by fresh investment by Government.
This year's May Day calls for intensified campaign by working class to fight communalism and religious fundamentalism. The BJP-led NDA is dangerous for their rabid communal and divisive agenda. The election manifesto of BJP has revived its 'hindutva' agenda and made the 'Ram Mandir' an election issue. The Gujarat and Kandhmal (Orissa) carnage apart, communal riots has become the hall mark of the BJP ruled states. The BJP’s game plan is to divide the working class and divide the people.
Moreover, the fight against terrorism and the casteist forces are also very much important. On this May Day the working class of India has to take the pledge to relentlessly fight the forces pausing serious threat to national integrity, communal amity and unity of the working class till these forces are decisively defeated.
On this May Day let us remember that crores of Indian worker participated in 12 nation-wide general strikes, scores of industry-wise strikes and innumerable agitations, demonstrations and other forms of action against neo-liberalism in the country. But for these struggles of the Left Parties against UPA Government's move to privatize banking sector and opening up insurance sector to foreign insurance companies, privatize the pension and social security funds etc, the impact of the meltdown of stock market and consequent financial crisis would have been much more severe than what the country is experiencing today. Enactment of PFRDA Bill aimed at facilitating speculation with pension funds could be stalled by the Left Political Parties and Left Trade Union movement and has saved the social security savings amounting to thousands of crores of rupees belonging to lakhs of workers from the great risk of being wiped out anytime due to down turn in stock market, as has happened in USA and European countries. Unfortunately access to Provident Fund money has been granted to private mutual funds including Reliance Capital by the UPA Government. The working class will have to fight to reverse the decision.
This May Day enjoins upon the toiling people of the country a vital responsibility to ensure the defeat of the Congress-led UPA and the BJP-led NDA in the on going parliamentary elections. At the same time the victory of the Left, Democratic and Secular Alternative must be ensured so that an Alternative Government is formed after this elections at the centre.
The Pledge of May Day 2009
This year's May Day pledge must be to intensify class struggle at the level of nation states and to consolidate the international unity of the working class to fight the menacing burdens of the economic crisis – principally, job losses, wage freeze, casualisation of employment, deterioration in quality of employment, social security, protection of the rights of migrant workers.
Long Live International Solidarity of the Working Class
Down with Imperialist Globalisation
Down with Neo-liberal capitalist Path
Down with Capitalism
Forward to Socialism
Workers of the world, Unite!
On the occasion of May Day – 2009, the day of the international solidarity and unity of the working class, the Centre of Indian Trade Unions (CITU) extends warmest revolutionary greetings to the entire working class and the toiling people of the country and the world as a whole. The CITU re-affirms its commitment to class struggle and complete emancipation of the human society from all forms of exploitation.
Fraternal Greetings
The CITU conveys its fraternal greetings to the working class of the socialist countries for holding high the banner of socialism.
The CITU also greets the working class of the developed capitalist countries for their grim battle for right to employment, right to higher living standard and in defence of trade union rights.
The CITU conveys greetings to the working class of the developing countries for their struggles against of imperialist machinations against their nations and the people abated by the ruling polity of the respective countries.
The CITU extends solidarity with the Agricultural Workers in their struggles for achieving for better wages, right to land and livelihood throughout the year and comprehensive social security and welfare measures. The CITU also conveys fraternal support to the poor and middle Peasants in their struggles for right to remunerative prices, institutional credit at low interest and infrastructural and input support through massive public investment in agriculture. The CITU appeals to the working class to stand by the masses of peasantry and strengthen worker-peasant unity for conducting united struggles against the anti-people policies of the neo-liberal regimes.
50 years of Cuban Revolution & Latin American Countries
The Cuban Revolution continues to be a beacon of hope for the toiling people all over world .The saga of 50 years of the Cuban Revolution is saga of a constant battle against the US imperialism. The Cuban experience conclusively demonstrates that the fight against imperialism and the fight for socialism cannot be separated.
Socialist Cuba continues to be the source of political awakening of the people in the entire Latin-American continent. The electoral defeat inflicted on the pro-US ruling polities one after another in the countries of Latin America by the people under the leadership of the Leftist Forces have delivered a severe blow both to the neo-liberal economic policies.
Fight the Imperialist Machinations
On this May Day the CITU condemns the aggressive hegemonic machinations of the imperialist forces led by US imperialism. Iraq and Afghanistan continues under US military occupation. While in Iraq resistance is growing from within, the US occupation of Afghanistan is contributing in deteriorating political situation in Pakistan.
Israel continues to occupy Palestinian and Arab territories. The recent Gaza massacre by Israeli military forces is the latest examples of imperialist brutality against humanity. Moreover, the US is continuing with its conspiracy to attack Iran, Syria, DPRK (Democratic People's Republic of Korea).
On the issue of deployment of Missile Defence System in Europe, contradiction between USA and Russia is getting aggravated despite change of guard in US Administration.
Special Significance of This Year's May Day
This year's May Day shall be observed by the working class all over the world at a time when neo-liberal economic ideology under finance capital driven imperialist globalization has collapsed and the world is in the grip of a worst ever capitalist economic crisis since the Great Depression of 1930s. According to Cuban President Fidel Castro, "But it is not the usual crisis that happen every certain number of years, or even traumatic crisis of 1930; rather, the worst of all since the world started to pursue this model of growth and development."
True, neo-liberalism has been totally exposed and "the crisis has certainly destroyed the credibility of the neo-liberal ideology." The neo-liberal policies must be reversed and the struggle must march forward towards the ultimate goal of a new people oriented progressive social order. We must understand that the birth of a new social order over the graveyard of neo-liberalism is not automatic but depends on how far the working class movement would successfully organize the fight against the system in strict adherence to ideology of class struggle.
Impact of the Crisis on Working People
According to a ILO forecast in January this year, by the end of 2009 world unemployment could increase by 5 crore (50 millions) over 2007 alone reaching to 23 crore (230 millions) and besides that the number of working poor increasing by 20 crore (200 millions). Closure, lay offs, retrenchment, wage freeze, withdrawal or reduction in social security measures etc has been pushed to a dangerous dimension by the employers' class. Already 3.8 crore (38 millions) people have lost their jobs over last couple of months whereas job creation is going to be far below compared to what it was two years ago.
Private business houses are given huge financial support at the expense of Government exchequers in the name of bail-out packages. Huge concessions are doled out to the capitalist class through repeated reduction in capital cost, interst-rate, tax cuts etc. instead of job protection and employment generation. Around 32 governments, which had spent about 1.19 trillion US dollars on stimulus packages, had spent a meager 9.2 per cent on relief to suffering people. The so called stimulus packages are mainly aimed at heating the financial markets for the benefit of the speculation and finance capital and the amount flowing for real economy are a meager less than one fifth of the total financial bailout packages. The Director General of ILO has commented, "People, Families and Communities did not create the crisis and yet they carry the highest human costs. And they are legitimately protesting."
World-wide Wave of Strikes
The world is reverberating with Strikes and militant Street Demonstrations as well as different other forms of struggles participated by millions and millions of worker to protest against brazen neglect of toiling people by the Governments in handling the economic crisis. It is a situation of "billions for banks, pennies for people."
The countries under the European Union have witnessed the maximum protest action. Eight national Federations of Trade Unions of France have jointly organized two giant strikes in quick succession. On 29th January and on 19th March this year hundreds of thousands of French workers marched through the streets of the cities of France including Paris. The next action is on the May Day in which ten lakh (one million) workers will take out 200 rallies all over France.
On 13 February the Metal Workers’ Union had strike work in Italy. In solidarity with the strikers, "In Rome 700,000 blue and white collar workers marched side by side, in a unity that has not been seen in Italy for some time." Russia also witnessed militant street rallies in almost every major city in January. In Britain sectoral strikes took place in different industries. More than one hundred thousand workers from different Eurepean countries jointly staged millitant demonstration in London on 2nd April 09 at the venue of meeting of G-20 leaders including Obama, Gordon Brown, Sarkozy, Manmohan Singh.
Shocking Acts of the UPA Government
In our country the neo-liberal policies were introduced by the Congress Party-led Government headed by late Narsimha Rao with Manmohan Singh as Finance Minister. And the BJP-led NDA Government pursued the same policies more vigorously and caused maximum damage to the economy. During NDA regime, many blue chip capital rich CPSUs were sold out almost free of cost and involving deep corruption. After the defeat of BJP-led NDA in the hustings, the Congress party-led UPA Government that followed thereafter also tried to follow the same path leading to the present crisis.
In India the export-oriented sectors like textile and apparels, information technology and ITES segments, gems and jewelleries, leather, tea, automobile parts, construction, aviation etc. have already been seriously affected. Moreover Small and Medium Size Enterprises (SMEs) have been hit hard. There has been full or partial closure of industrial units, particularly the export oriented ones, then cut in production in the industries due to down turn in the market and resultant retrenchment, lay off etc. The official figure of job losses so far is only five hundred thousand but the actual figure of job-losses are many times more and this is increasing by leaps and bounds every day.
The bail-out packages of the UPA Government are still prioritizing on pumping funds to financial market to allure foreign and Indian speculators and not at all on protecting employment, promoting public investment in agriculture, infrastructure, public services and material production and expanding social security and public distribution system – which alone can improve purchasing power of the people, expand domestic market and save the national economy and the mass of the people from the onslaught of the crisis. By their perverse actions, the Congress led UPA has clearly demonstrated that their commitment is not to the people and the country's interest but to the big Corporates and their strategic partners in the imperialist block.
The Ongoing Parliamentary Elections
This year May Day is being observed by the Indian working class in the midst of the on going parliamentary elections. The political parties in the electoral fray are mainly identified into three combinations. A major set back suffered by the UPA and the NDA led by the Congress party and the BJP respectively is that some of their major constituents have deserted them. On the other hand the Left parties have succeeded in launching the Non-Congress non-BJP Third Alternative. Reckoning fact is that the right from the inception the Third Alternative is continuously strengthening with support from different political parties. With every passing day the possibility of formation of an Alternative Government without BJP or Congress party at the centre after the elections is becoming more and more brighter.
The country needs a Government at the centre that would completely reverse the economic policies which have created the crisis and adopt new policies concretely directed to address the sufferings of the people inflicted by the economic crisis. Need of the hour is protection of jobs, generation of new employment, stimulating domestic market by empowering the people economically. Speculative economic activities must be rejected. In other words, not only dismantling of public sector must be stopped but further strengthened by fresh investment by Government.
This year's May Day calls for intensified campaign by working class to fight communalism and religious fundamentalism. The BJP-led NDA is dangerous for their rabid communal and divisive agenda. The election manifesto of BJP has revived its 'hindutva' agenda and made the 'Ram Mandir' an election issue. The Gujarat and Kandhmal (Orissa) carnage apart, communal riots has become the hall mark of the BJP ruled states. The BJP’s game plan is to divide the working class and divide the people.
Moreover, the fight against terrorism and the casteist forces are also very much important. On this May Day the working class of India has to take the pledge to relentlessly fight the forces pausing serious threat to national integrity, communal amity and unity of the working class till these forces are decisively defeated.
On this May Day let us remember that crores of Indian worker participated in 12 nation-wide general strikes, scores of industry-wise strikes and innumerable agitations, demonstrations and other forms of action against neo-liberalism in the country. But for these struggles of the Left Parties against UPA Government's move to privatize banking sector and opening up insurance sector to foreign insurance companies, privatize the pension and social security funds etc, the impact of the meltdown of stock market and consequent financial crisis would have been much more severe than what the country is experiencing today. Enactment of PFRDA Bill aimed at facilitating speculation with pension funds could be stalled by the Left Political Parties and Left Trade Union movement and has saved the social security savings amounting to thousands of crores of rupees belonging to lakhs of workers from the great risk of being wiped out anytime due to down turn in stock market, as has happened in USA and European countries. Unfortunately access to Provident Fund money has been granted to private mutual funds including Reliance Capital by the UPA Government. The working class will have to fight to reverse the decision.
This May Day enjoins upon the toiling people of the country a vital responsibility to ensure the defeat of the Congress-led UPA and the BJP-led NDA in the on going parliamentary elections. At the same time the victory of the Left, Democratic and Secular Alternative must be ensured so that an Alternative Government is formed after this elections at the centre.
The Pledge of May Day 2009
This year's May Day pledge must be to intensify class struggle at the level of nation states and to consolidate the international unity of the working class to fight the menacing burdens of the economic crisis – principally, job losses, wage freeze, casualisation of employment, deterioration in quality of employment, social security, protection of the rights of migrant workers.
Long Live International Solidarity of the Working Class
Down with Imperialist Globalisation
Down with Neo-liberal capitalist Path
Down with Capitalism
Forward to Socialism
Workers of the world, Unite!
ILO report on Gender aspect
The other half
T.K. RAJALAKSHMI
in New Delhi
An International Labour Organisation report examines the gender aspect of the global financial crisis.
PAUL NORONHA
WOMEN ROLLING PAPAD at Dharavi in Mumbai. There are lakhs of women employed in home-based work, but they are "invisible" as they are unregistered workers.
THERE is no gainsaying the fact that labour markets will deteriorate because of the global economic crisis. A recent report, “Global Employment Trends for Women” by the International Labour Organisation (ILO), suggests that there is a gender aspect too to its impact on jobs. The magnitude of the crisis will unfold only in the months to come.
But responses from policymakers, including those in India, which began with a denial of the projected impact of the slowdown, have been slow and inadequate. In fact, trade unions in India were quite surprised when a Minister recommended that employees be prepared for wage cuts. And, given the fact that various gender differentials already exist in employment, working conditions and wages, the report, which looks at the gender impact of the economic crisis, gains more significance.
The report, a sequel to the “Global Employment Trends 2009” released early this year, underscores one of the recurrent themes in ILO documents over the years: lack of access to decent work will only increase poverty and social instability. It is not desirable, therefore, to have a huge workforce employed in what does not constitute decent work and decent terms of employment. Stating that the emerging trends are extremely worrying for both men and women, the report says the time has come for a coordinated effort internationally to stop the slowdown.
The report includes a new category called the vulnerable employed to denote own-account workers and unpaid family workers. These workers are in the informal or unorganised sector and are characterised by insecurity of employment, and have no social security, bargaining power or decent wages.
At the global level, the share of the vulnerable employed among all women employed is as high as 52.7 per cent compared with 49.1 per cent for men, says the report. Vulnerable employment exists all over the world but is acute in sub-Saharan Africa and Asia. The conclusion that emerges is that the shift away from vulnerable forms of employment into regular, salaried wage work will result in real economic freedom and economic independence for women. This, in turn, will have an impact on the social status of women.
The report further says that while the share of women in wage and salaried work grew from 41.8 per cent in 1997 to 45.5 per cent in 2007, the corresponding increase of female own-account workers was much higher. Own-account workers have fewer formal arrangements of work, lack social protection and safety nets, and are incapable of generating enough savings at times of financial crises.
The report does not specify whether the disadvantages for women in the current global crisis will be more compared with those of men, but given the large employment of women in agriculture, where wages and returns in most parts of the world continue to be very low, there is no doubt that the economic situation for these sections can only be expected to worsen.
The report calls for greater investment in female education, changes in labour legislation and the setting up of certain conditions that enable sharing of family responsibilities so that women can participate equally in labour markets. Studies conducted by the ILO in Bangladesh show that as women’s education improved, the male-female wage gap decreased. But in addition to providing education, the onus on governments is to make commitments to free and accessible health care and provide foodgrains at low prices. In India, it is a well-known fact that high health care expenditure is a major reason for rural indebtedness and that out-of-pocket expenditure on health is as high as 80 per cent. The government’s expenditure on health is less than 1 per cent of the gross domestic product (GDP).
Gender differentials, says the report, come from a number of reasons, including crowding of women in low-paying industries and differences in skills and work experience. More often than not, it is the demand from industry for women in low-paying jobs that results in the overcrowding of women. Certain types of industries prefer women for certain categories of jobs that offer low wages. Training women workers for skilled-category jobs is a non-existent practice. They are driven out of economic necessity to settle for low-paying jobs and debilitating working conditions.
The impact of the crisis, with its gender differentials, is not going to be the same in all parts of the world. The crisis may prove to be devastating for men and women equally in developed economies, with the unemployment rates for men slightly higher than those of women. According to the report, the ranks of the unemployed increased by 13.8 million between 2007 and 2008, marking the largest year-on-year increase in recent times.
In fact, what is noticeable is a reduction in the gender gap of the rate of unemployment. Of the total 193 million of unemployed the world over, men constituted 112 million and women 81 million. Access to labour markets is stated as one of the reasons for the low employment of women.
If decent work was easily accessible, there is little doubt that women would have joined the ranks of the employed in huge numbers. In the absence of work qualifying as decent and of a permanent nature, men have the greater advantage than women in negotiating jobs. Significantly, the question that needs to be addressed more aggressively by the ILO and others is whether decent work is easily available.
Gender pay gap
Gender pay gap is prevalent all over the world, including in the United States. The report notes with concern that the reduction in the gender pay gap has slowed down. In developed economies, there was a reduction in the gender gap in the unemployment rate in 2008, which implied that the situation of men in the labour market had worsened than that of women. It is for these reasons that the report is unable to conclude that women have been more adversely affected by the economic crisis in developed economies.
Between 1995 and 2005, the sector having the highest employment growth rate for both men and women in the developed economies was real estate, renting and business activities. In financial intermediation, the sector where the crisis originated, employment distribution was slightly more favourable to women than men. Hence, the report surmises, the impact of the crisis in this sector would have affected women more than men.
Economic status plays a major role in labour force participation by women. In developed countries, the report argues, a low rate of employment of women may indicate that women here have a choice and can afford not to enter the labour market. But in developing countries, this choice is absent. This, besides other social factors, is a reason for women opting not to enter the labour market. The report says that these women who stay at home do a lot of household activities and shoulder a lot of unpaid family care responsibilities, which does not reflect in the national incomes of governments as such work is classified as non-economic activity.
The broad trend observed in India and perhaps the rest of South Asia and sub-Saharan Africa is that women, out of sheer economic necessity and to meet the high cost of living, cutting across caste, community and religious lines, enter the labour market in a thousand ways which are still to be recognised as economic activity by their governments.
S. SIVA SARAVANAN
At a spinning mill in Dharapuram near Coimbatore in Tamil Nadu. The report says a very small proportion of women are employed in industry while the large majority are employed in agriculture.
For instance, there are lakhs of women employed in home-based work, doing piece-rate jobs where they are paid unimaginably low rates. They are quite invisible as they are unregistered workers, without any legislative or social entitlement. Likewise, there are hordes of women employed as domestic workers, who again lack any wage structure or protective legislative system.
As the report shows, a very small proportion of women are employed in industry while the large majority are employed in agriculture. There is what is called an overrepresentation of women in agriculture. Almost everywhere in the world, there are fewer women employed in industry as compared to other sectors.
While the feminisation of agriculture and of poverty has become a cliched term, the feminisation of industry is yet to happen. What the report does not explain are the reasons for the growing feminisation of agriculture. Is it a sign of distress or of hidden prosperity? Globally, the share of women employed in agriculture stands at 35.4 per cent as compared to 32.2 per cent for men. It is almost 60 per cent in South Asia and sub-Saharan Africa, which perhaps means that this is where governments ought to direct their policies for women in order to create decent conditions of work.
Services sector
The services sector is another area which has seen a burgeoning of female employment in recent times. According to the report, in 2008, the services sector accounted for 46.3 per cent of all female employment while male employment comprised 41.2 per cent. The conditions of work and wages, of course, vary from region to region though it can be safely surmised that the worst conditions prevail in South Asia and sub-Saharan Africa. Much of the work in agriculture as well as the services sector is unorganised, devoid of any overarching legislation that guarantees social security and decent wages.
But then there are government policies itself which may need to be reversed. The report highlights the global food crisis that originated with the neglect of agriculture and hit countries in Africa the most. This, in turn, affected women who were employed, and continue to be employed, in agriculture in large numbers. Africa, which was more than self-sufficient in food 50 years ago, is now a massive food importer, says the report, quoting a study.
The report’s analysis that one of the reasons for the failure of the sector is gender inequality and lack of empowerment of women is inadequate in the least as much of international attention and donor-driven funding for development for several decades has been in Africa. There is a need to introspect on the kind of programmes, including structural adjustment, which much of Africa was made to undergo in the past few decades, and the impact of such externally imposed policies on agriculture and much of the social sector. The report recommends greater investment in rural infrastructure, education and social capital, something that the Left parties in India have been advocating. •
T.K. RAJALAKSHMI
in New Delhi
An International Labour Organisation report examines the gender aspect of the global financial crisis.
PAUL NORONHA
WOMEN ROLLING PAPAD at Dharavi in Mumbai. There are lakhs of women employed in home-based work, but they are "invisible" as they are unregistered workers.
THERE is no gainsaying the fact that labour markets will deteriorate because of the global economic crisis. A recent report, “Global Employment Trends for Women” by the International Labour Organisation (ILO), suggests that there is a gender aspect too to its impact on jobs. The magnitude of the crisis will unfold only in the months to come.
But responses from policymakers, including those in India, which began with a denial of the projected impact of the slowdown, have been slow and inadequate. In fact, trade unions in India were quite surprised when a Minister recommended that employees be prepared for wage cuts. And, given the fact that various gender differentials already exist in employment, working conditions and wages, the report, which looks at the gender impact of the economic crisis, gains more significance.
The report, a sequel to the “Global Employment Trends 2009” released early this year, underscores one of the recurrent themes in ILO documents over the years: lack of access to decent work will only increase poverty and social instability. It is not desirable, therefore, to have a huge workforce employed in what does not constitute decent work and decent terms of employment. Stating that the emerging trends are extremely worrying for both men and women, the report says the time has come for a coordinated effort internationally to stop the slowdown.
The report includes a new category called the vulnerable employed to denote own-account workers and unpaid family workers. These workers are in the informal or unorganised sector and are characterised by insecurity of employment, and have no social security, bargaining power or decent wages.
At the global level, the share of the vulnerable employed among all women employed is as high as 52.7 per cent compared with 49.1 per cent for men, says the report. Vulnerable employment exists all over the world but is acute in sub-Saharan Africa and Asia. The conclusion that emerges is that the shift away from vulnerable forms of employment into regular, salaried wage work will result in real economic freedom and economic independence for women. This, in turn, will have an impact on the social status of women.
The report further says that while the share of women in wage and salaried work grew from 41.8 per cent in 1997 to 45.5 per cent in 2007, the corresponding increase of female own-account workers was much higher. Own-account workers have fewer formal arrangements of work, lack social protection and safety nets, and are incapable of generating enough savings at times of financial crises.
The report does not specify whether the disadvantages for women in the current global crisis will be more compared with those of men, but given the large employment of women in agriculture, where wages and returns in most parts of the world continue to be very low, there is no doubt that the economic situation for these sections can only be expected to worsen.
The report calls for greater investment in female education, changes in labour legislation and the setting up of certain conditions that enable sharing of family responsibilities so that women can participate equally in labour markets. Studies conducted by the ILO in Bangladesh show that as women’s education improved, the male-female wage gap decreased. But in addition to providing education, the onus on governments is to make commitments to free and accessible health care and provide foodgrains at low prices. In India, it is a well-known fact that high health care expenditure is a major reason for rural indebtedness and that out-of-pocket expenditure on health is as high as 80 per cent. The government’s expenditure on health is less than 1 per cent of the gross domestic product (GDP).
Gender differentials, says the report, come from a number of reasons, including crowding of women in low-paying industries and differences in skills and work experience. More often than not, it is the demand from industry for women in low-paying jobs that results in the overcrowding of women. Certain types of industries prefer women for certain categories of jobs that offer low wages. Training women workers for skilled-category jobs is a non-existent practice. They are driven out of economic necessity to settle for low-paying jobs and debilitating working conditions.
The impact of the crisis, with its gender differentials, is not going to be the same in all parts of the world. The crisis may prove to be devastating for men and women equally in developed economies, with the unemployment rates for men slightly higher than those of women. According to the report, the ranks of the unemployed increased by 13.8 million between 2007 and 2008, marking the largest year-on-year increase in recent times.
In fact, what is noticeable is a reduction in the gender gap of the rate of unemployment. Of the total 193 million of unemployed the world over, men constituted 112 million and women 81 million. Access to labour markets is stated as one of the reasons for the low employment of women.
If decent work was easily accessible, there is little doubt that women would have joined the ranks of the employed in huge numbers. In the absence of work qualifying as decent and of a permanent nature, men have the greater advantage than women in negotiating jobs. Significantly, the question that needs to be addressed more aggressively by the ILO and others is whether decent work is easily available.
Gender pay gap
Gender pay gap is prevalent all over the world, including in the United States. The report notes with concern that the reduction in the gender pay gap has slowed down. In developed economies, there was a reduction in the gender gap in the unemployment rate in 2008, which implied that the situation of men in the labour market had worsened than that of women. It is for these reasons that the report is unable to conclude that women have been more adversely affected by the economic crisis in developed economies.
Between 1995 and 2005, the sector having the highest employment growth rate for both men and women in the developed economies was real estate, renting and business activities. In financial intermediation, the sector where the crisis originated, employment distribution was slightly more favourable to women than men. Hence, the report surmises, the impact of the crisis in this sector would have affected women more than men.
Economic status plays a major role in labour force participation by women. In developed countries, the report argues, a low rate of employment of women may indicate that women here have a choice and can afford not to enter the labour market. But in developing countries, this choice is absent. This, besides other social factors, is a reason for women opting not to enter the labour market. The report says that these women who stay at home do a lot of household activities and shoulder a lot of unpaid family care responsibilities, which does not reflect in the national incomes of governments as such work is classified as non-economic activity.
The broad trend observed in India and perhaps the rest of South Asia and sub-Saharan Africa is that women, out of sheer economic necessity and to meet the high cost of living, cutting across caste, community and religious lines, enter the labour market in a thousand ways which are still to be recognised as economic activity by their governments.
S. SIVA SARAVANAN
At a spinning mill in Dharapuram near Coimbatore in Tamil Nadu. The report says a very small proportion of women are employed in industry while the large majority are employed in agriculture.
For instance, there are lakhs of women employed in home-based work, doing piece-rate jobs where they are paid unimaginably low rates. They are quite invisible as they are unregistered workers, without any legislative or social entitlement. Likewise, there are hordes of women employed as domestic workers, who again lack any wage structure or protective legislative system.
As the report shows, a very small proportion of women are employed in industry while the large majority are employed in agriculture. There is what is called an overrepresentation of women in agriculture. Almost everywhere in the world, there are fewer women employed in industry as compared to other sectors.
While the feminisation of agriculture and of poverty has become a cliched term, the feminisation of industry is yet to happen. What the report does not explain are the reasons for the growing feminisation of agriculture. Is it a sign of distress or of hidden prosperity? Globally, the share of women employed in agriculture stands at 35.4 per cent as compared to 32.2 per cent for men. It is almost 60 per cent in South Asia and sub-Saharan Africa, which perhaps means that this is where governments ought to direct their policies for women in order to create decent conditions of work.
Services sector
The services sector is another area which has seen a burgeoning of female employment in recent times. According to the report, in 2008, the services sector accounted for 46.3 per cent of all female employment while male employment comprised 41.2 per cent. The conditions of work and wages, of course, vary from region to region though it can be safely surmised that the worst conditions prevail in South Asia and sub-Saharan Africa. Much of the work in agriculture as well as the services sector is unorganised, devoid of any overarching legislation that guarantees social security and decent wages.
But then there are government policies itself which may need to be reversed. The report highlights the global food crisis that originated with the neglect of agriculture and hit countries in Africa the most. This, in turn, affected women who were employed, and continue to be employed, in agriculture in large numbers. Africa, which was more than self-sufficient in food 50 years ago, is now a massive food importer, says the report, quoting a study.
The report’s analysis that one of the reasons for the failure of the sector is gender inequality and lack of empowerment of women is inadequate in the least as much of international attention and donor-driven funding for development for several decades has been in Africa. There is a need to introspect on the kind of programmes, including structural adjustment, which much of Africa was made to undergo in the past few decades, and the impact of such externally imposed policies on agriculture and much of the social sector. The report recommends greater investment in rural infrastructure, education and social capital, something that the Left parties in India have been advocating. •
Sunday, December 14, 2008
Role of TradeUnions
Sustainable Growth and the Role of Trade Unions
- Ardhendu Dakshi
Sustainable growth of the economy is extremely vital for the working class and the trade unions. A steady and all round expansion of production and services means steady jobs, a secured life and prospect of a decent wage and a better career. Continuous growth of economy also denotes higher consumption by the people, general improvement of their standard of living and the working class, being a part of the society, also is the beneficiary of sustained growth of the economy. A balanced growth in all the three major sectors like agriculture, industry and services signifies a mutually supportive system with a better distribution of the wealth generated by the society. With a proper distributive system in place, the economy develops into a self-sustaining or self-generating one. This is something that not only the working class but also all other sections of toiling people want to have for their prosperity and peace in life. A proper macro-economic management can bring about big social changes and stability in the society that can usher in a situation conducive for further growth. The fundamental principles for the policy makers must be driven by the desire to uplift the condition of the common people who will ultimately hold the economy up and help it to expand.
The class, conscious trade unions look beyond the primary task of looking after the welfare of their members, to the other aspects of economic management and related developments. We have seen in the past as well as in the present time that wrong policies and mis-management of the economy can bring disaster in the life of the people but the working class are always hardest hit during an economic downturn. When the economic slow-down starts because of unbalanced and unplanned growth driven only by profit-motiveness by the capitalist class the workers are simply thrown out of their jobs, common people are forced to suffer all their hardships in life and when protests grow and situation become unmanageable, their democratic rights are trampled down. In the world of capitalism this is the general rule. In spite of all the known fault lines of capitalism, the governments run by the capitalists, in order to maintain their dominance have resorted to violence against their own people in their own countries as well as against other countries and the people there. The horrors of war all through the twentieth century are results of capitalist crises and the pursuit of world capitalism to establish their absolute dominance over world economy.
The Role of Trade Unions
There are two types of responses from trade union when the crisis strikes the head of the workers. One section of trade unionists call such crises as "natural" by claiming that economy, as always, have "ups" and "downs" and therefore, the workers shall have to bear it out and, with great hope, should wait for better times. They also are keen to protect the domestic employers, for obvious reasons, and the governments by shifting the responsibility to the "global" phenomenon of economic crisis. This is an easy option to deceive the workers and the people. They preach tolerance and ask workers to make sacrifices in order to protect capital and the capitalists though they are mainly responsible for such crises.
Last 20 years, in the matters of economic development, is a period fit for a close study. The period of "Neo-Liberal Globalization" is marked by high rate of growth but is a disbalanced and skewed one is proving to be un-sustainable and the crisis is deepening. We have witnessed a massive transfer of wealth from poor countries to rich countries and from poor people to rich people. Huge production capacities have been generated by paying "One dollar or, at the best, two dollars to the workers". In the process some people have become phenomenally rich and a new middle class has emerged enjoying the best of their life at the cost of the working class. Most of the national governments and policy makers have put a supportive frame-work to help such a crude, ruthless exploitation of labour. Some trade unions also fell in line calling globalsition as "inevitable".
Apart from the economic suffering by the working class the other big loss is their trade union rights. Except for the socialist countries, there has been a pervading decline of trade union rights in both developed and developing world. In the developing countries labour law enforcement has been lax and in some countries the entire legal framework for protection of labour has been demolished. All these steps have led to further impoverishment of the working class in both industrial and rural agricultural sectors.
In such a situation the role of class oriented trade unions has been altogether different, if not opposite. As for example, we, in the Centre of Indian Trade Unions (CITU), have all along opposed this model of growth as we knew that it would not be sustainable. Another major development is causing more worry for the workers in developing countries.
For various reasons the western economies have shifted their manufacturing base to the developing countries. Availability of cheap and skilled labour, raw materials and better infrastructural facilities are the main considerations. But to keep their control over the emerging economies they have kept their hold over the stock markets and investment agencies. This is a dangerous situation because, in such a mechanism, the economy of developing country is tuned to the needs of developed world without creating a strong domestic market to fall back on, in case there is a demand slump in developed world. All these will lead to a globalized crisis and the main sufferers will be the workers in developing countries. Their trade unions will have little chance to protect jobs of their members, not to speak of decent wage and labour rights.
The duty of the class-based trade unions is to hit at the root of the cause of fragile and vulnerable economic structure. Understanding the cause unsustainable growth and to fight for changing the macro-economic policies is the fundamental duty of class conscious trade unions.
The capitalists preach that poverty anywhere is danger for prosperity everywhere but they do not practice their own dictum. Poverty has increased in most of the developing countries in last 20 years. In some countries, like India, the recent growth is impressive but illusory because there has been no simultaneous growth of domestic market. 80 per cent of people live just at subsistence level and 90 per cent of the workers cannot buy the products they produce. In case of a slack international demand the growth in India cannot be sustained. The government may only try to prop up the stock market, the manufacturing sector is bound to face a collapse in a global slump.
The role of trade unions has to be one to avoid such a situation. Trade unions must play a role of intervention in the policy making stage through mass action, should oppose wrong policies by the government, particularly in capitalist economies, and fight for distribution of wealth to the people and the workers so as to ensure a better real income by them. These steps only can guarantee a sustainable growth of the economy where production, distribution and consumption can be evenly matched and market is developed in the country. When the orthodox capitalist system fails, trade unions, obviously, should have a role to intervene to change the economy and the society. More than anything else, sustainable growth of economy is extremely vital for the working class a well as their trade unions.
Internationalisation of Movement
All said and done we believe that when trade union movement becomes a social movement for a change, it cannot be confined in one country, inside one geographical boundary, in this era of globalization. We are witnessing two dangerous trends all over the capitalist world that are influencing the life of conventional working class in post world war-2 situation, particularly in the era of globalization.
Firstly, there is gradual displacement of regular workers in advanced countries by informal and illegal immigrant workers who do not enjoy same rights like regular workers. Secondly, in the developing countries there is large-scale displacement of regular workers by contractors' workers or informal workers. Outsourcing of jobs are rampant almost everywhere.
While the employers are totally united and employing the same methods, bargaining with national governments in the same way, about everywhere across the globe, unfortunately national governments are competing with each other to grant more liberal concessions in the matters of wages benefits, social protection and labour rights. The workers are at the receiving end.
This situation compels the trade unions to join hands nationally, regionally and globally. Without a concerted resistance there is poor chance to fight such exploitation at the local level. Let us admit the fact that the multinational corporations are taking full advantage of this situation and maximizing their profit.
We welcome the move by the ACFTU to organize this meeting. Such regional understanding and co-operation will go a long way for protection of the workers job and rights in our respective countries. We in the CITU have always aspired for building up of an Asian Confederation of Trade Unions, where trade unions of all affiliations could work together on common goal of protecting the workers rights. In the present situation such an organization has become a necessity as we apprehend that with accentuating of economic crisis, attack on the workers will intensify particularly in the Asian region.
ACFTU has the strength stature and the wherewithal to help building up an Asian Confederation of Trade Unions. We look forward for the day when such an initiative is taken by the trade unions in different countries and ACFTU takes an appropriate lead to fulfill the important international task.
Our greetings to ACFTU from Centre of Indian Trade Unions (CITU).
(Speech by Ardhendu Dakshi in Beijing Conference of Trade Unions in South Asia)
- Ardhendu Dakshi
Sustainable growth of the economy is extremely vital for the working class and the trade unions. A steady and all round expansion of production and services means steady jobs, a secured life and prospect of a decent wage and a better career. Continuous growth of economy also denotes higher consumption by the people, general improvement of their standard of living and the working class, being a part of the society, also is the beneficiary of sustained growth of the economy. A balanced growth in all the three major sectors like agriculture, industry and services signifies a mutually supportive system with a better distribution of the wealth generated by the society. With a proper distributive system in place, the economy develops into a self-sustaining or self-generating one. This is something that not only the working class but also all other sections of toiling people want to have for their prosperity and peace in life. A proper macro-economic management can bring about big social changes and stability in the society that can usher in a situation conducive for further growth. The fundamental principles for the policy makers must be driven by the desire to uplift the condition of the common people who will ultimately hold the economy up and help it to expand.
The class, conscious trade unions look beyond the primary task of looking after the welfare of their members, to the other aspects of economic management and related developments. We have seen in the past as well as in the present time that wrong policies and mis-management of the economy can bring disaster in the life of the people but the working class are always hardest hit during an economic downturn. When the economic slow-down starts because of unbalanced and unplanned growth driven only by profit-motiveness by the capitalist class the workers are simply thrown out of their jobs, common people are forced to suffer all their hardships in life and when protests grow and situation become unmanageable, their democratic rights are trampled down. In the world of capitalism this is the general rule. In spite of all the known fault lines of capitalism, the governments run by the capitalists, in order to maintain their dominance have resorted to violence against their own people in their own countries as well as against other countries and the people there. The horrors of war all through the twentieth century are results of capitalist crises and the pursuit of world capitalism to establish their absolute dominance over world economy.
The Role of Trade Unions
There are two types of responses from trade union when the crisis strikes the head of the workers. One section of trade unionists call such crises as "natural" by claiming that economy, as always, have "ups" and "downs" and therefore, the workers shall have to bear it out and, with great hope, should wait for better times. They also are keen to protect the domestic employers, for obvious reasons, and the governments by shifting the responsibility to the "global" phenomenon of economic crisis. This is an easy option to deceive the workers and the people. They preach tolerance and ask workers to make sacrifices in order to protect capital and the capitalists though they are mainly responsible for such crises.
Last 20 years, in the matters of economic development, is a period fit for a close study. The period of "Neo-Liberal Globalization" is marked by high rate of growth but is a disbalanced and skewed one is proving to be un-sustainable and the crisis is deepening. We have witnessed a massive transfer of wealth from poor countries to rich countries and from poor people to rich people. Huge production capacities have been generated by paying "One dollar or, at the best, two dollars to the workers". In the process some people have become phenomenally rich and a new middle class has emerged enjoying the best of their life at the cost of the working class. Most of the national governments and policy makers have put a supportive frame-work to help such a crude, ruthless exploitation of labour. Some trade unions also fell in line calling globalsition as "inevitable".
Apart from the economic suffering by the working class the other big loss is their trade union rights. Except for the socialist countries, there has been a pervading decline of trade union rights in both developed and developing world. In the developing countries labour law enforcement has been lax and in some countries the entire legal framework for protection of labour has been demolished. All these steps have led to further impoverishment of the working class in both industrial and rural agricultural sectors.
In such a situation the role of class oriented trade unions has been altogether different, if not opposite. As for example, we, in the Centre of Indian Trade Unions (CITU), have all along opposed this model of growth as we knew that it would not be sustainable. Another major development is causing more worry for the workers in developing countries.
For various reasons the western economies have shifted their manufacturing base to the developing countries. Availability of cheap and skilled labour, raw materials and better infrastructural facilities are the main considerations. But to keep their control over the emerging economies they have kept their hold over the stock markets and investment agencies. This is a dangerous situation because, in such a mechanism, the economy of developing country is tuned to the needs of developed world without creating a strong domestic market to fall back on, in case there is a demand slump in developed world. All these will lead to a globalized crisis and the main sufferers will be the workers in developing countries. Their trade unions will have little chance to protect jobs of their members, not to speak of decent wage and labour rights.
The duty of the class-based trade unions is to hit at the root of the cause of fragile and vulnerable economic structure. Understanding the cause unsustainable growth and to fight for changing the macro-economic policies is the fundamental duty of class conscious trade unions.
The capitalists preach that poverty anywhere is danger for prosperity everywhere but they do not practice their own dictum. Poverty has increased in most of the developing countries in last 20 years. In some countries, like India, the recent growth is impressive but illusory because there has been no simultaneous growth of domestic market. 80 per cent of people live just at subsistence level and 90 per cent of the workers cannot buy the products they produce. In case of a slack international demand the growth in India cannot be sustained. The government may only try to prop up the stock market, the manufacturing sector is bound to face a collapse in a global slump.
The role of trade unions has to be one to avoid such a situation. Trade unions must play a role of intervention in the policy making stage through mass action, should oppose wrong policies by the government, particularly in capitalist economies, and fight for distribution of wealth to the people and the workers so as to ensure a better real income by them. These steps only can guarantee a sustainable growth of the economy where production, distribution and consumption can be evenly matched and market is developed in the country. When the orthodox capitalist system fails, trade unions, obviously, should have a role to intervene to change the economy and the society. More than anything else, sustainable growth of economy is extremely vital for the working class a well as their trade unions.
Internationalisation of Movement
All said and done we believe that when trade union movement becomes a social movement for a change, it cannot be confined in one country, inside one geographical boundary, in this era of globalization. We are witnessing two dangerous trends all over the capitalist world that are influencing the life of conventional working class in post world war-2 situation, particularly in the era of globalization.
Firstly, there is gradual displacement of regular workers in advanced countries by informal and illegal immigrant workers who do not enjoy same rights like regular workers. Secondly, in the developing countries there is large-scale displacement of regular workers by contractors' workers or informal workers. Outsourcing of jobs are rampant almost everywhere.
While the employers are totally united and employing the same methods, bargaining with national governments in the same way, about everywhere across the globe, unfortunately national governments are competing with each other to grant more liberal concessions in the matters of wages benefits, social protection and labour rights. The workers are at the receiving end.
This situation compels the trade unions to join hands nationally, regionally and globally. Without a concerted resistance there is poor chance to fight such exploitation at the local level. Let us admit the fact that the multinational corporations are taking full advantage of this situation and maximizing their profit.
We welcome the move by the ACFTU to organize this meeting. Such regional understanding and co-operation will go a long way for protection of the workers job and rights in our respective countries. We in the CITU have always aspired for building up of an Asian Confederation of Trade Unions, where trade unions of all affiliations could work together on common goal of protecting the workers rights. In the present situation such an organization has become a necessity as we apprehend that with accentuating of economic crisis, attack on the workers will intensify particularly in the Asian region.
ACFTU has the strength stature and the wherewithal to help building up an Asian Confederation of Trade Unions. We look forward for the day when such an initiative is taken by the trade unions in different countries and ACFTU takes an appropriate lead to fulfill the important international task.
Our greetings to ACFTU from Centre of Indian Trade Unions (CITU).
(Speech by Ardhendu Dakshi in Beijing Conference of Trade Unions in South Asia)
Trade unionsin massive campaigns
Trade Unions to Unleash Massive Campaign -
On ILO Core Conventions
- Swadesh Dev Roye
According to the call of the 87th session of International Labour Conference (ILC) of the International Labour Organisatioon (ILO) the trade union movement all over the world is observing the 60th anniversary of the adoption of the Core Convention No.87.
The Central Trade Unions (CTUs) in our country jointly organized a 'National Workshop on ILO Core Conventions' on 4th November 2008 at the Constitution Club, New Delhi. The presidium of the workshop consisted of MK Pandhe (CITU), H. Mahadevan (AITUC), RA Mital (HMS), R.Sharma (AIUTUC), Abani Roy (UTUC) and Thomas (AICCTU).
A Keynote Paper was presented in the Workshop. Initiating the discussion Com. Pandhe deplored non-ratification of all the Core Conventions by India, which is a founder member of ILO. He spoke on the need for conducting countrywide massive campaign to popularise the Core Conventions of ILO amongst the working class. He put forward suggestions for carrying out protracted propaganda and agitation to mount pressure on the Government to ratify the remaining Core Conventions in India. More and more cooperation and coordinated activities by trade unions and Sub-Regional Office of ILO in India was stressed upon by Com. Pandhe.
It is to be noted that out of the 8 Core Conventions, India, a founder member of ILO and holding a non-elective seat of the Governing Body, has so far ratified only four - Convention Nos. 29,100, 105 and 111 in the years 1954, 1958, 2000 and 1960 respectively. Notably, the two most important Core Conventions i.e., Conventions No. 87 and 98 are not yet ratified by India.
Apart from the members of the presidium those who spoke in the Workshop included Ms. Leyla Tegmo-Reddy, Director and ILO Representative in India, Pong-Sul Ahn, Senior Specialist for Activities with Workers’ Organisations, ILO, India. Those who spoke representing CITU included Tapan Sen, Swadesh Dev Roye, Kashmir Singh Thakur, Sudhir Kumar, D.P. Dubey and Ranjana Nirula. Glaring examples of serious violation of trade union rights and attack on trade union functionaries were presented by speakers from states and industries.
Extracts from the Keynote Paper are as follows: The freedom and rights conferred on workers by ILO Convention No.87 can be precisely summarised as follows: The right freely exercised by workers to organize for furthering and defending their interests. The right to establish and to join orgnisations of their own choosing by workers. Public authorities shall refrain from any interference which would restrict their right or impede the lawful exercise of this right. The organizations shall have the right to establish and join federations and confederations, which shall enjoy the same rights and guarantees and also provides for the rights to affiliate with international organizations. The acquisition of legal personality by all these organizations shall not be subject to restrictive conditions. The law of the land and the way in which it is applied shall not impair the guarantees provided for in the Convention. (ILO Bureau of Workers’ Activities)
Similarly, the salient features of ILO Convention No.98 can be briefly summarised as follows: Protection to workers who are exercising the right to organize, non-interference between workers' organization and employers' organization. Promotion of voluntary collective bargaining. Workers shall enjoy adequate protection against acts of anti-union discrimination. Workers shall be protected against refusal to employ due to trade union membership. Against dismissal or any other prejudice by reason of union membership or participation in trade union activities. (ILO Bureau of Workers' Activities).
The Government of India has been continuously failing to ratify the left out Core Conventions on different pleas. In view of the collapse of the 'market driven' finance capital dominated economic policies of globalization, liberalization and privatisation as manifested in the worst ever capitalist economic crisis since the Great Depression of 1930s, the forthcoming days willl be very challenging for the working class. Already attack has been launched on jobs and wages and to blunt the inevitable resistance struggles by the trade union movement, the employers' class will resort to attack on trade union rights.
To carry forward the campaign through out the country the next joint consultation of the trade unions shall consider Regional Conventions at Kolkata, Mumbai, Chennai, Bangalore, Hyderabad and Chandigarh and to culminate into a massive National Convention at New Delhi which will adopt further course of action. A delegation of the trade unions will submit a memorandum to the Government. Technical cooperation of ILO, both at the levels of headquarters and at the New Delhi office, will be worked out.
On ILO Core Conventions
- Swadesh Dev Roye
According to the call of the 87th session of International Labour Conference (ILC) of the International Labour Organisatioon (ILO) the trade union movement all over the world is observing the 60th anniversary of the adoption of the Core Convention No.87.
The Central Trade Unions (CTUs) in our country jointly organized a 'National Workshop on ILO Core Conventions' on 4th November 2008 at the Constitution Club, New Delhi. The presidium of the workshop consisted of MK Pandhe (CITU), H. Mahadevan (AITUC), RA Mital (HMS), R.Sharma (AIUTUC), Abani Roy (UTUC) and Thomas (AICCTU).
A Keynote Paper was presented in the Workshop. Initiating the discussion Com. Pandhe deplored non-ratification of all the Core Conventions by India, which is a founder member of ILO. He spoke on the need for conducting countrywide massive campaign to popularise the Core Conventions of ILO amongst the working class. He put forward suggestions for carrying out protracted propaganda and agitation to mount pressure on the Government to ratify the remaining Core Conventions in India. More and more cooperation and coordinated activities by trade unions and Sub-Regional Office of ILO in India was stressed upon by Com. Pandhe.
It is to be noted that out of the 8 Core Conventions, India, a founder member of ILO and holding a non-elective seat of the Governing Body, has so far ratified only four - Convention Nos. 29,100, 105 and 111 in the years 1954, 1958, 2000 and 1960 respectively. Notably, the two most important Core Conventions i.e., Conventions No. 87 and 98 are not yet ratified by India.
Apart from the members of the presidium those who spoke in the Workshop included Ms. Leyla Tegmo-Reddy, Director and ILO Representative in India, Pong-Sul Ahn, Senior Specialist for Activities with Workers’ Organisations, ILO, India. Those who spoke representing CITU included Tapan Sen, Swadesh Dev Roye, Kashmir Singh Thakur, Sudhir Kumar, D.P. Dubey and Ranjana Nirula. Glaring examples of serious violation of trade union rights and attack on trade union functionaries were presented by speakers from states and industries.
Extracts from the Keynote Paper are as follows: The freedom and rights conferred on workers by ILO Convention No.87 can be precisely summarised as follows: The right freely exercised by workers to organize for furthering and defending their interests. The right to establish and to join orgnisations of their own choosing by workers. Public authorities shall refrain from any interference which would restrict their right or impede the lawful exercise of this right. The organizations shall have the right to establish and join federations and confederations, which shall enjoy the same rights and guarantees and also provides for the rights to affiliate with international organizations. The acquisition of legal personality by all these organizations shall not be subject to restrictive conditions. The law of the land and the way in which it is applied shall not impair the guarantees provided for in the Convention. (ILO Bureau of Workers’ Activities)
Similarly, the salient features of ILO Convention No.98 can be briefly summarised as follows: Protection to workers who are exercising the right to organize, non-interference between workers' organization and employers' organization. Promotion of voluntary collective bargaining. Workers shall enjoy adequate protection against acts of anti-union discrimination. Workers shall be protected against refusal to employ due to trade union membership. Against dismissal or any other prejudice by reason of union membership or participation in trade union activities. (ILO Bureau of Workers' Activities).
The Government of India has been continuously failing to ratify the left out Core Conventions on different pleas. In view of the collapse of the 'market driven' finance capital dominated economic policies of globalization, liberalization and privatisation as manifested in the worst ever capitalist economic crisis since the Great Depression of 1930s, the forthcoming days willl be very challenging for the working class. Already attack has been launched on jobs and wages and to blunt the inevitable resistance struggles by the trade union movement, the employers' class will resort to attack on trade union rights.
To carry forward the campaign through out the country the next joint consultation of the trade unions shall consider Regional Conventions at Kolkata, Mumbai, Chennai, Bangalore, Hyderabad and Chandigarh and to culminate into a massive National Convention at New Delhi which will adopt further course of action. A delegation of the trade unions will submit a memorandum to the Government. Technical cooperation of ILO, both at the levels of headquarters and at the New Delhi office, will be worked out.
Employees Provident Fund
Employees' Pension Scheme -
Oppose Arbitrary Reduction of Benefits, Demand Improvments
- W. R. Varada Rajan
The Employees’ Pension Scheme (EPS) was introduced in 1995 as an additional scheme under the Employees' Provident Fund Miscellaneous Provisions Act, 1952. A fierce debate preceded the enactment of legislation in Parliament in this regard. The CITU and some other Left Trade Unions had demanded Pension as a third benefit and pointed out the inadequacies and shortcomings in the EPS put forth by the then Congress Government at the Centre. However, the INTUC, BMS, AITUC and HMS had lent unqualified support to the EPS as brought out by the Government and justified such support with an ingenious argument that once the Scheme comes into vogue, improvements could be made subsequently. The Government on its part included a provision for annual valuation of the Employees' Pension Fund and also assured a comprehensive review after 10 years of introduction of the EPS.
The first four annual valuation reports brought out at the end of November 1996, March 1998, March 1999 and March 2000 had resulted in grant of paltry relief of 4 per cent, 5.5 per cent, 4 per cent and 4 per cent respectively. Thereafter, the annual valuation reports for the period from 2001 to 2005 incorporated an alarming picture of huge deficit in the Pension Fund, based on the assessment of growing contingent liability. Besides, the Employees' Provident Fund Organisation and the Ministry of Labour have been resorting to unilateral interpretation of the provisions of the EPS, adversely affecting even the grossly inadequate benefits contained in the Scheme. The Supreme Court verdict upholding the EPS 1995 had emboldened the Government to take drastic measures detrimental to the interests of the workers.
The Ministry of Labour had put forth several proposals for reducing the benefit-package under the EPS 1995. These proposals were opposed by the representatives of the central trade unions inside the Central Board of Trustees of the EPF. The Government of India attempted to push these proposals at the meetings with the representatives of the central Trade Unions held with the Secretary, Ministry of Labour on 21.4.2005, 21.6.2005 and 18.7.2005 and the Minister of Labour on 16.11.2006. In all these meetings, all the central trade unions had rejected these proposals and unanimously demanded that the contribution from the employers and the Government of India should appropriately be increased in order to grant improved pension benefits and index linked dearness relief to the pensioners.
The Employees' Provident Fund Organisation (EPFO) has constituted a committee to conduct a comprehensive review of the Pension Scheme. Besides, there is a Pension Implementation Committee under the CBT to continuously monitor the Pension Scheme.
But, the Governmnet of India had issued a Gazette notification (GSR Nos. 688 (E) dated the 26th September, 2008) incorporating several amendments They are:
1. Amendment to Para 12 (7).
2. Deletion of Para 12 A.
3. Deletion of Para 13.
These amendments have far reaching consequences by way of substantially altering the benefit package of the EPS'95 to the detriment of the interests of workers.
The first amendment to Para 12 (7) has increased the rate by which the amount of pension is to be reduced in the case of early pension (availed by those who have completed 50 years of age but are below the age of 58) from 3 per cent to 4 per cent. This will result in immediate reduction in the quantum of pension.
If for example, the eligible pension on completing 58 years of age is Rs. 1000 per month and the employee has to exit the job on completion of 50 years of age, either due to resignation, retrenchment, illness or otherwise, he would get an early pension applying a reduction of 3 per cent per year i.e. 24 per cent reduced from the monthly pension and would get Rs. 760 per month. This reduction rate has now been enhance to 4 per cent and in this case the reduction would be 32 per cent or the monthly pension would be Rs. 680 only.
The second amendment (Deletion of Para 12 A) is altogether eliminating the option available at present for commutation of pension. The existing provision enables a member to commute up to a maximum of one-third of his pension so as to receive hundred times the monthly pension. This facility was mad available after three years of commencement of the Pension Scheme i.e. from 16.11.1998 onwards.
If for example, the eligible pension is Rs. 1000 per month and the pensioner opts to commute one-third of his monthly pension the commuted value of will be equal to 1/3 x 1000 x 100 = Rs. 33333 and the same will be paid at the time of exercise of option for commutation. The balance pension payable on monthly basis will be Rs. 667.
This option for commutation is totally abolished now. The pensioner is thus denied the opportunity to commute one-third of his monthly pension and avail a lump sum amount to meet exigencies like marriage in the family, death of kin, medical expenses etc. The concept of commutation is a universal component of any pension scheme and this is done away with arbitrarily.
The third amendment (Deletion of Para 13) eliminates the existing option available to a member eligible for pension to draw reduced pension and avail a return of capital under any of the three alternatives provided. Unlike the option for commutation, the option for return of capital must be exercised at the time of applying for pension itself.
The three alternatives are:
i. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original pension with return of capital equal to 100 times the original monthly pension on death of the member payable to the nominee.
ii. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original monthly pension; the widow of the pensioner can opt to avail a revised pension of 80 per cent of original monthly pension on the death of her husband; the nominee of the pensioner can also exercise this option on the remarriage of the widow; In these case the return of capital will be equal to 90 times the original monthly pension.
iii. A pensioner can opt to avail a fixed pension for a period of 20 years notwithstanding whether the member lives for that period or not. Under this option the member can avail a 87.5 per cent of original monthly pension for 20 years and at the end of 20 years, avail return of capital equal to 100 times the original monthly pension.
All these three alternative options for availing return of capital have now been totally eliminated.
Besides these adverse changes in the benefit package under the Employees' Pension Scheme 1995, the notification incorporates an amendment to the table under the EPS revising the rates of damages to be levied from an employer who makes a default in the payment of contributions/charges payable as prescribed in the scheme.
The existing rate of damages and reduced rates are as under:
Period of Delay (Pre-revised) Rate of damages (As amended)
Less than two months 17 % 5 %
2 months & above but less than 4 months 22% 10%
4 months & above but less than 6 months 27 % 15 %
6 months & above 37 % 25 %
Such damages are levied under the Employees' Provident Fund (EPF) Scheme and Employees' Deposit Linked Insurance (EDLI) Scheme as well. The Government of India has issued two other Gazette Notifications (GSR Nos. 689 (E) to 690 (E) dated the 26th September, 2008) incorporating identical amendments to the tables under these two schemes as well.
These amendments arte intended to benefit the employers who are defaulting the remittance of contributions under these schemes. While on the one hand the Government of India has virtually abolished the inspection of establishments to do away with the 'harassment' of employers and has pledged to promote voluntary compliance, the penal element in respect of defaults in compliance have also been softened.
Only the subject of reducing the rate of damages was placed as an agenda item of the 181st, 182nd and 183rd meetings of the Central Board of Trustees (CBT), EPF held on 24.1.2008, 17.4.2008 and 5.7.2008. In the CBT, the agenda item was deferred on all the three occasions. A decision has since been taken on this deferred item of the agenda at the back of the CBT. This is highly deplorable.
While the first amendment to Para 12 (7), i.e. enhancement of the rate of reduction in the case of early pension, had been mooted by the Consultant Actuary and the Valuation Reports. But the other amendments had never been raised at any time before either in the meetings of the CBT or in the meeting of the Pension Implementation Committee. Moreover, these issues were not discussed in the meetings with the representatives of the Central Trade Unions, referred to earlier.
These arbitrary decisions have been given effect to even while a comprehensive review of the EPS' 95 is under way and the Committee set up for the purpose has held two sittings.
The trade union movement should vehemently protest over this unjustified move, which has rendered the statutory tripartite body of the CBT irrelevant and reduced the tripartite consultation mechanism in the Labour Ministry to a mockery.
Here it is also worthwhile to record here that a decision taken by the CBT after due deliberations at its 182nd and 183rd meetings for reduction of threshold limit for coverage of the EPF & MP Act, 1952, from the existing limit of 20 workers to 10 workers had not been given effect to. While the Ministry of Labour has chosen to maintain a studied silence over this decision, it has no qualms to decided with unseemly haste flouting all norms to impose adverse changes in the benefit package of the EPS' 95.
The trade union movement should demand immediate withdrawal of these Notifications and urge the Government of India to initiate a dialogue with the Central Trade Unions for bringing meaningful improvements in the Employees' Pensions Scheme like enhancement of the minimum pension bringing it on par with the minimum pension available under the central government pension scheme applicable to pre – 2004 recruits and provision of index linked dearness relief for the pensioners. For this, the contribution from the employers and the Government of India should appropriately be hiked.
Oppose Arbitrary Reduction of Benefits, Demand Improvments
- W. R. Varada Rajan
The Employees’ Pension Scheme (EPS) was introduced in 1995 as an additional scheme under the Employees' Provident Fund Miscellaneous Provisions Act, 1952. A fierce debate preceded the enactment of legislation in Parliament in this regard. The CITU and some other Left Trade Unions had demanded Pension as a third benefit and pointed out the inadequacies and shortcomings in the EPS put forth by the then Congress Government at the Centre. However, the INTUC, BMS, AITUC and HMS had lent unqualified support to the EPS as brought out by the Government and justified such support with an ingenious argument that once the Scheme comes into vogue, improvements could be made subsequently. The Government on its part included a provision for annual valuation of the Employees' Pension Fund and also assured a comprehensive review after 10 years of introduction of the EPS.
The first four annual valuation reports brought out at the end of November 1996, March 1998, March 1999 and March 2000 had resulted in grant of paltry relief of 4 per cent, 5.5 per cent, 4 per cent and 4 per cent respectively. Thereafter, the annual valuation reports for the period from 2001 to 2005 incorporated an alarming picture of huge deficit in the Pension Fund, based on the assessment of growing contingent liability. Besides, the Employees' Provident Fund Organisation and the Ministry of Labour have been resorting to unilateral interpretation of the provisions of the EPS, adversely affecting even the grossly inadequate benefits contained in the Scheme. The Supreme Court verdict upholding the EPS 1995 had emboldened the Government to take drastic measures detrimental to the interests of the workers.
The Ministry of Labour had put forth several proposals for reducing the benefit-package under the EPS 1995. These proposals were opposed by the representatives of the central trade unions inside the Central Board of Trustees of the EPF. The Government of India attempted to push these proposals at the meetings with the representatives of the central Trade Unions held with the Secretary, Ministry of Labour on 21.4.2005, 21.6.2005 and 18.7.2005 and the Minister of Labour on 16.11.2006. In all these meetings, all the central trade unions had rejected these proposals and unanimously demanded that the contribution from the employers and the Government of India should appropriately be increased in order to grant improved pension benefits and index linked dearness relief to the pensioners.
The Employees' Provident Fund Organisation (EPFO) has constituted a committee to conduct a comprehensive review of the Pension Scheme. Besides, there is a Pension Implementation Committee under the CBT to continuously monitor the Pension Scheme.
But, the Governmnet of India had issued a Gazette notification (GSR Nos. 688 (E) dated the 26th September, 2008) incorporating several amendments They are:
1. Amendment to Para 12 (7).
2. Deletion of Para 12 A.
3. Deletion of Para 13.
These amendments have far reaching consequences by way of substantially altering the benefit package of the EPS'95 to the detriment of the interests of workers.
The first amendment to Para 12 (7) has increased the rate by which the amount of pension is to be reduced in the case of early pension (availed by those who have completed 50 years of age but are below the age of 58) from 3 per cent to 4 per cent. This will result in immediate reduction in the quantum of pension.
If for example, the eligible pension on completing 58 years of age is Rs. 1000 per month and the employee has to exit the job on completion of 50 years of age, either due to resignation, retrenchment, illness or otherwise, he would get an early pension applying a reduction of 3 per cent per year i.e. 24 per cent reduced from the monthly pension and would get Rs. 760 per month. This reduction rate has now been enhance to 4 per cent and in this case the reduction would be 32 per cent or the monthly pension would be Rs. 680 only.
The second amendment (Deletion of Para 12 A) is altogether eliminating the option available at present for commutation of pension. The existing provision enables a member to commute up to a maximum of one-third of his pension so as to receive hundred times the monthly pension. This facility was mad available after three years of commencement of the Pension Scheme i.e. from 16.11.1998 onwards.
If for example, the eligible pension is Rs. 1000 per month and the pensioner opts to commute one-third of his monthly pension the commuted value of will be equal to 1/3 x 1000 x 100 = Rs. 33333 and the same will be paid at the time of exercise of option for commutation. The balance pension payable on monthly basis will be Rs. 667.
This option for commutation is totally abolished now. The pensioner is thus denied the opportunity to commute one-third of his monthly pension and avail a lump sum amount to meet exigencies like marriage in the family, death of kin, medical expenses etc. The concept of commutation is a universal component of any pension scheme and this is done away with arbitrarily.
The third amendment (Deletion of Para 13) eliminates the existing option available to a member eligible for pension to draw reduced pension and avail a return of capital under any of the three alternatives provided. Unlike the option for commutation, the option for return of capital must be exercised at the time of applying for pension itself.
The three alternatives are:
i. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original pension with return of capital equal to 100 times the original monthly pension on death of the member payable to the nominee.
ii. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original monthly pension; the widow of the pensioner can opt to avail a revised pension of 80 per cent of original monthly pension on the death of her husband; the nominee of the pensioner can also exercise this option on the remarriage of the widow; In these case the return of capital will be equal to 90 times the original monthly pension.
iii. A pensioner can opt to avail a fixed pension for a period of 20 years notwithstanding whether the member lives for that period or not. Under this option the member can avail a 87.5 per cent of original monthly pension for 20 years and at the end of 20 years, avail return of capital equal to 100 times the original monthly pension.
All these three alternative options for availing return of capital have now been totally eliminated.
Besides these adverse changes in the benefit package under the Employees' Pension Scheme 1995, the notification incorporates an amendment to the table under the EPS revising the rates of damages to be levied from an employer who makes a default in the payment of contributions/charges payable as prescribed in the scheme.
The existing rate of damages and reduced rates are as under:
Period of Delay (Pre-revised) Rate of damages (As amended)
Less than two months 17 % 5 %
2 months & above but less than 4 months 22% 10%
4 months & above but less than 6 months 27 % 15 %
6 months & above 37 % 25 %
Such damages are levied under the Employees' Provident Fund (EPF) Scheme and Employees' Deposit Linked Insurance (EDLI) Scheme as well. The Government of India has issued two other Gazette Notifications (GSR Nos. 689 (E) to 690 (E) dated the 26th September, 2008) incorporating identical amendments to the tables under these two schemes as well.
These amendments arte intended to benefit the employers who are defaulting the remittance of contributions under these schemes. While on the one hand the Government of India has virtually abolished the inspection of establishments to do away with the 'harassment' of employers and has pledged to promote voluntary compliance, the penal element in respect of defaults in compliance have also been softened.
Only the subject of reducing the rate of damages was placed as an agenda item of the 181st, 182nd and 183rd meetings of the Central Board of Trustees (CBT), EPF held on 24.1.2008, 17.4.2008 and 5.7.2008. In the CBT, the agenda item was deferred on all the three occasions. A decision has since been taken on this deferred item of the agenda at the back of the CBT. This is highly deplorable.
While the first amendment to Para 12 (7), i.e. enhancement of the rate of reduction in the case of early pension, had been mooted by the Consultant Actuary and the Valuation Reports. But the other amendments had never been raised at any time before either in the meetings of the CBT or in the meeting of the Pension Implementation Committee. Moreover, these issues were not discussed in the meetings with the representatives of the Central Trade Unions, referred to earlier.
These arbitrary decisions have been given effect to even while a comprehensive review of the EPS' 95 is under way and the Committee set up for the purpose has held two sittings.
The trade union movement should vehemently protest over this unjustified move, which has rendered the statutory tripartite body of the CBT irrelevant and reduced the tripartite consultation mechanism in the Labour Ministry to a mockery.
Here it is also worthwhile to record here that a decision taken by the CBT after due deliberations at its 182nd and 183rd meetings for reduction of threshold limit for coverage of the EPF & MP Act, 1952, from the existing limit of 20 workers to 10 workers had not been given effect to. While the Ministry of Labour has chosen to maintain a studied silence over this decision, it has no qualms to decided with unseemly haste flouting all norms to impose adverse changes in the benefit package of the EPS' 95.
The trade union movement should demand immediate withdrawal of these Notifications and urge the Government of India to initiate a dialogue with the Central Trade Unions for bringing meaningful improvements in the Employees' Pensions Scheme like enhancement of the minimum pension bringing it on par with the minimum pension available under the central government pension scheme applicable to pre – 2004 recruits and provision of index linked dearness relief for the pensioners. For this, the contribution from the employers and the Government of India should appropriately be hiked.
Sunday, September 7, 2008
PROLETARIAT
DEFINITION OF PROLETARIAT –Sukomal sen
Since the days of Marx, things have changed enormously and as has been pointed out, the technological revolution has also led to a revolutionary change in the labour process. For the present generation of Marxists this change has to be properly understood and things are to be judged and examined in the light of the basic formulations of Marx and Engels.
The working class has always had to undergo a particular pattern of labour-process depending upon the structure of capitalist accumulation and technological developments of the instruments of labour. In Marx's day a huge number of wage-labourers belonged to the domestic industry. Even in industry, `machinofacture', the distinctively capitalist method of mass production based on the large-scale use of machinery which Marx analysed in depth in Capital (volume one) was limited for much of the nineteenth century to a few advanced sectors, notably the Lancashire Cotton trade. A vast amount of capitalist enterprise was organised on the basis of manual rather than steam-power technologies. In fact, Machinofacture was generalised, not during the period of the Industrial Revolution itself, but in the late nineteenth and early twentieth centuries with the development, especially in the United States, of mass assembly-line production.
The working class did never possess any fixed structure or compo¬sition. Rather, this structure and composition had changed as the needs of capital accumulation have altered. Periods of crisis can be seen at times of reorganisation and restructuring, as ineffi¬cient sectors are run down, bankrupt capitals taken over, and new sectors and more efficient capitals take their places. The working class itself participates in this process as some are destroyed and others created.
In the present era of scientific and technological revolution combined with capitalist globalisation of economy, the capital¬ists are more and more using labour saving devices. Electronics, cybernetics and automation have provided the capitalists with these drastic labour saving devices.
As Marx has said, with the universalisation of education, the merchant capitalists get a ready-made mass of job-seekers who can be employed as commercial wage-workers doing the work of accoun¬tancy, buying and selling etc. Like wise, high level of technical education in computers and automation have also provided the service sector industries the opportunity for recruiting techni¬cally skilled workers for performing the desired job. It means the industrialists need various types of workers doing various types of jobs -- some manual workers, some mechanists, some clerical, some computer-operators, some supervisors and so on. In fact, Marx also visualised this proliferation of the workers in various types of work, all in the interest of the capitalists.
In Capital (volume three), in the chapter on Classes, Marx per¬haps tried to explain this situation but the manuscript remained unfinished.
Marx posed the question and sought to answer, "What makes wage- labourers, capitalists and landlords constitute the three great social classes?
"At first glance -- the identity of revenues and sources of revenues. There are three great social groups whose number, the individuals forming them, live on wages, profit and ground rent respectively, on the realisation of their labour-power, their capital, and their landed property.
"However, from this standpoint, physicians and officials e.g. would also constitute two classes for they belong to two distinct social groups, the members of each of these groups receiving their revenue from one and the same source. The same would also be true of the indefinite fragmentation of interest and rank into which the division of social labour splits labourers as well as capitalists and landlords -- the latter, e.g., into owners of Vineyards, farm owners, owners of forests, mine owners and owners of fisheries." 35 (emphasis added.) Unfortunately, the manu¬script breaks off here and Marx did not complete his observations on the nature of fragmentation and splits of the labourers.
But Marx mentioned `interest and rank' which causes `infinite fragmentation of social labour' which `splits labourers'. In fact, in modern manufacturing industry including service industry the splitting of labourers depending upon skill required and rank is obvious.
In another place Marx said, "The real lever of the overall labour process is increasingly not the individual workers. Instead, labour-power socially combined and the various compelling labour-powers which together form the entire production machine participate in very different ways in the immediate process of making commodities... some work better with their hands, other with their heads, one as a manager, engineer, technologist, etc, the other as overseer, the third as manual labourer or even drudge. An ever-increasing number of types of labour are included in the immediate concept of produc¬tive labourer, and those who perform it are classed as productive workers, workers directly exploited by capital and subordinated to its process of production and expansion." 36 (emphasis added).
So, if what Marx said above is considered in the light of what Marx said in regard to `splitting of labourers', then it is pertinent to conclude that all those who form part of what Marx called `Collective Labour', the complex division of labour in¬volved in producing commodities, are productive workers, even if they do not work with their hand. Moreover, in the light of Marx's analysis of the commercial wage-worker, there is no evi¬dence to suggest that Marx regarded only productive workers in manufacturing industry as forming the proletariat.
In fact, the distinction between productive and unproductive labour is therefore, between labour which contributes to the self-expansion of capital and labour which does not. Marx's main example of the latter is that of domestic servants, the largest single category of workers in Victorian Britain, employed out of the revenue of the middle and upper classes. But one point Marx did not mention that these poor strata of the people who engaged themselves as domestic servants had no other means of livelihood and so they were forced to sell their labour-power. While Marx said of splitting of labourers whatever complex form it may assume, it follows from Marx's analysis of capitalism that socio- economic compulsion to sell one's labour-power is the obvious characteristic of the proletariat. Accordingly all wage-labour¬ers are subject to the fundamental constraints of the capitalist relations of production -- non-ownership of means of production, lack of direct access to the means of livelihood, non-accessibil¬ity of land or insufficient money to purchase the means of live¬lihood without more or less continuous sale of labour-power. These categories will include not only commercial clerks and lower government employees and other numerous number of scattered daily labourers (including domestic servants) since they have no other means of livelihood except selling his or her labour-power.
Here it may be pertinent to heed what Rosa Luxemburg said in her The Accumulation of Capital, Chapter XVI on The Reproduction of Capital and its Social Setting about the sources from which the rural and urban proletariat is recruited. She pointed at the source, "the continued process by which the rural and urban middle strata become proletarian with the decay of peasant economy and of small artisan enterprises, the very process, that is to say, of incessant transition from non-capitalist to capi¬talist conditions of a labour-power that is cast off by pre- capitalist, not capitalist, mode of production in their progres¬sive breakdown and disintegration."37 This analysis is valid not only for 19th century Europe; it is equally valid in the condi¬tions prevailing in India today.
Another point has to be considered in this respect. Marx provided a general definition of service when he said, "A service is nothing more than the useful effect of a use-value be it of a commodity, or be it of labour." He then made an interesting comment on skilled and unskilled labour: "in every process of creating value, the reduction of skilled labour, average social labour e.g. one day of skilled labour to six days of unskilled labour, is unavoidable." 38
A worker who is employed for producing goods renders a service to the capitalists. And because of this service a tangible and vendible object takes shape as a commodity. But when the useful effects of labour do not result in a vendible object then it creates a different situation. Harry Braverman's explanation of these circumstances appears quite logical. He states, "When worker does not offer this labour directly to the user of its effects, but instead sells it to a capitalist, who re-sells it on the commodity market, then we have the capitalist form of production in the field of services." 39
Arguing in detail that service is also a productive labour gener¬ating surplus value in the capitalist relation of production, Braverman makes the following illuminating observation:
"In the history of capitalism while use of one or another form may play a greater role in a particular area, the tendency is towards eradication of distinction among its various forms, particularly in the era of monopoly capitalism, it makes little sense to ground any theory of the economy upon any specially favoured variety of labour process. As these varied forms came under the auspices of capital and become part of the domain of profitable investment, they enter for the capitalist into the realm of general or abstract labour, labour which enlarges capi¬tal. In the modern `Corporation' all forms of labour are employed without any distinction, and in the modern conglomerate Corpora¬tion some divisions carry on manufacturing, others carry on trade, others banking, others mining and still others `service' process. They live peacefully together, and in the final result as recorded in the balance sheet the forms labour disappear entirely in the forms of value." 40 (emphasis added)
The question sometimes arises that since the workers' wages and amenities are rising, of course due to their resistance struggle, whether the workers who are better paid or whose standard of living has risen, still possess a revolutionary potential.
Marx dealt with this question before he wrote Communist Manifes¬to. In his Wage Labour and Capital, Marx observed,
"When productive capital grows, the demand for labour grows; Consequently, the price of labour, wages, goes up. ...
"A noticeable increase in wages presupposes a rapid growth of productive capital. The rapid growth of productive capital brings about an equally rapid growth of wealth, luxury, social wants, social enjoyments. Thus, although the enjoyments of the worker have risen, the social satisfaction that they gave has fallen in comparison with the increased enjoyments of the capi¬talist, which are inaccessible to the workers, in comparison with the state of development of society in general. Our desire and pleasure spring from society; we measure them, by society and not by the objects which serve for their satisfaction. Because they are of a social nature, they are of a relative nature.
"In general, wages are determined not only by the amount of commodities for which I can exchange them. They embody various relations". 41
These words of Marx are quite significant in understanding the present situation when due to workers' struggles and various other factors, the wages and other amenities of the workers have gone up and their standard of living is not also at the same level as it was in the mid-nineteenth century. Capitalism leads to a wider disparity in economic terms between the owners and the wage-workers. The workers may achieve a higher wage level or amenities, but in comparison to that the wealth and prosperity of the owning or propertied class are rising in geometrical progres¬sion.
Particularly, in this era of capitalist globalisation and the triumph of finance capital, this disparity in income is reaching an unprecedented height. Even the protagonist of globalisation, the World Bank in their successive reports has expressed concern at this rapidly widening disparity and that more and more people getting impoverished and jobless and World Bank apprehend an increasing dissatisfaction among the toiling and poorer sections against the ruling regimes.
So it is not a question of how much rise has taken place in the wage level; the question actually centers round whether the toiling sections are getting their due proportion of the income generated in a country. This sense of deprivation and disparity actually gives impetus to working class militancy.
Considering all these facts and formulations, today's manufactur¬ing workers, skilled service sector workers, commercial workers in the mercantile firms and financial institutions like banks, insurances and the clerical and subordinate workers in the serv¬ice to the capitalists in the phenomenally expanded government sectors, the scattered and individual daily workers -- all natu¬rally come within the definition of the wage-workers while the industrial wage-workers form the core of the proletarian class.
Even the domestic workers who have no other way of sustenance than selling their labour-power, though they do not produce any value and not organised against capitalist exploitation but a highly deprived and exploited lot, are also getting proletaria¬nised within the broader definition of the term. But if one sticks to the definition of proletariat to the manual industrial workers only in the pattern of nineteenth century, then the proletariat will be reduced to a small and declining nineteenth century stereotype only and this definition will not be compat¬ible with the reality of the present situation when manual work¬ers in traditional industry are sharply declining giving place to service workers and commercial workers including part-time and casual workers.
All these factors taken together prove the untenability of the fashionable notion that the proletariat is a fast declining class or even disappearing and a `new middle class' is appearing on the scene with high level of wages and amenities who do not possess any militancy of struggle or revolutionary potential.
************************
Since the days of Marx, things have changed enormously and as has been pointed out, the technological revolution has also led to a revolutionary change in the labour process. For the present generation of Marxists this change has to be properly understood and things are to be judged and examined in the light of the basic formulations of Marx and Engels.
The working class has always had to undergo a particular pattern of labour-process depending upon the structure of capitalist accumulation and technological developments of the instruments of labour. In Marx's day a huge number of wage-labourers belonged to the domestic industry. Even in industry, `machinofacture', the distinctively capitalist method of mass production based on the large-scale use of machinery which Marx analysed in depth in Capital (volume one) was limited for much of the nineteenth century to a few advanced sectors, notably the Lancashire Cotton trade. A vast amount of capitalist enterprise was organised on the basis of manual rather than steam-power technologies. In fact, Machinofacture was generalised, not during the period of the Industrial Revolution itself, but in the late nineteenth and early twentieth centuries with the development, especially in the United States, of mass assembly-line production.
The working class did never possess any fixed structure or compo¬sition. Rather, this structure and composition had changed as the needs of capital accumulation have altered. Periods of crisis can be seen at times of reorganisation and restructuring, as ineffi¬cient sectors are run down, bankrupt capitals taken over, and new sectors and more efficient capitals take their places. The working class itself participates in this process as some are destroyed and others created.
In the present era of scientific and technological revolution combined with capitalist globalisation of economy, the capital¬ists are more and more using labour saving devices. Electronics, cybernetics and automation have provided the capitalists with these drastic labour saving devices.
As Marx has said, with the universalisation of education, the merchant capitalists get a ready-made mass of job-seekers who can be employed as commercial wage-workers doing the work of accoun¬tancy, buying and selling etc. Like wise, high level of technical education in computers and automation have also provided the service sector industries the opportunity for recruiting techni¬cally skilled workers for performing the desired job. It means the industrialists need various types of workers doing various types of jobs -- some manual workers, some mechanists, some clerical, some computer-operators, some supervisors and so on. In fact, Marx also visualised this proliferation of the workers in various types of work, all in the interest of the capitalists.
In Capital (volume three), in the chapter on Classes, Marx per¬haps tried to explain this situation but the manuscript remained unfinished.
Marx posed the question and sought to answer, "What makes wage- labourers, capitalists and landlords constitute the three great social classes?
"At first glance -- the identity of revenues and sources of revenues. There are three great social groups whose number, the individuals forming them, live on wages, profit and ground rent respectively, on the realisation of their labour-power, their capital, and their landed property.
"However, from this standpoint, physicians and officials e.g. would also constitute two classes for they belong to two distinct social groups, the members of each of these groups receiving their revenue from one and the same source. The same would also be true of the indefinite fragmentation of interest and rank into which the division of social labour splits labourers as well as capitalists and landlords -- the latter, e.g., into owners of Vineyards, farm owners, owners of forests, mine owners and owners of fisheries." 35 (emphasis added.) Unfortunately, the manu¬script breaks off here and Marx did not complete his observations on the nature of fragmentation and splits of the labourers.
But Marx mentioned `interest and rank' which causes `infinite fragmentation of social labour' which `splits labourers'. In fact, in modern manufacturing industry including service industry the splitting of labourers depending upon skill required and rank is obvious.
In another place Marx said, "The real lever of the overall labour process is increasingly not the individual workers. Instead, labour-power socially combined and the various compelling labour-powers which together form the entire production machine participate in very different ways in the immediate process of making commodities... some work better with their hands, other with their heads, one as a manager, engineer, technologist, etc, the other as overseer, the third as manual labourer or even drudge. An ever-increasing number of types of labour are included in the immediate concept of produc¬tive labourer, and those who perform it are classed as productive workers, workers directly exploited by capital and subordinated to its process of production and expansion." 36 (emphasis added).
So, if what Marx said above is considered in the light of what Marx said in regard to `splitting of labourers', then it is pertinent to conclude that all those who form part of what Marx called `Collective Labour', the complex division of labour in¬volved in producing commodities, are productive workers, even if they do not work with their hand. Moreover, in the light of Marx's analysis of the commercial wage-worker, there is no evi¬dence to suggest that Marx regarded only productive workers in manufacturing industry as forming the proletariat.
In fact, the distinction between productive and unproductive labour is therefore, between labour which contributes to the self-expansion of capital and labour which does not. Marx's main example of the latter is that of domestic servants, the largest single category of workers in Victorian Britain, employed out of the revenue of the middle and upper classes. But one point Marx did not mention that these poor strata of the people who engaged themselves as domestic servants had no other means of livelihood and so they were forced to sell their labour-power. While Marx said of splitting of labourers whatever complex form it may assume, it follows from Marx's analysis of capitalism that socio- economic compulsion to sell one's labour-power is the obvious characteristic of the proletariat. Accordingly all wage-labour¬ers are subject to the fundamental constraints of the capitalist relations of production -- non-ownership of means of production, lack of direct access to the means of livelihood, non-accessibil¬ity of land or insufficient money to purchase the means of live¬lihood without more or less continuous sale of labour-power. These categories will include not only commercial clerks and lower government employees and other numerous number of scattered daily labourers (including domestic servants) since they have no other means of livelihood except selling his or her labour-power.
Here it may be pertinent to heed what Rosa Luxemburg said in her The Accumulation of Capital, Chapter XVI on The Reproduction of Capital and its Social Setting about the sources from which the rural and urban proletariat is recruited. She pointed at the source, "the continued process by which the rural and urban middle strata become proletarian with the decay of peasant economy and of small artisan enterprises, the very process, that is to say, of incessant transition from non-capitalist to capi¬talist conditions of a labour-power that is cast off by pre- capitalist, not capitalist, mode of production in their progres¬sive breakdown and disintegration."37 This analysis is valid not only for 19th century Europe; it is equally valid in the condi¬tions prevailing in India today.
Another point has to be considered in this respect. Marx provided a general definition of service when he said, "A service is nothing more than the useful effect of a use-value be it of a commodity, or be it of labour." He then made an interesting comment on skilled and unskilled labour: "in every process of creating value, the reduction of skilled labour, average social labour e.g. one day of skilled labour to six days of unskilled labour, is unavoidable." 38
A worker who is employed for producing goods renders a service to the capitalists. And because of this service a tangible and vendible object takes shape as a commodity. But when the useful effects of labour do not result in a vendible object then it creates a different situation. Harry Braverman's explanation of these circumstances appears quite logical. He states, "When worker does not offer this labour directly to the user of its effects, but instead sells it to a capitalist, who re-sells it on the commodity market, then we have the capitalist form of production in the field of services." 39
Arguing in detail that service is also a productive labour gener¬ating surplus value in the capitalist relation of production, Braverman makes the following illuminating observation:
"In the history of capitalism while use of one or another form may play a greater role in a particular area, the tendency is towards eradication of distinction among its various forms, particularly in the era of monopoly capitalism, it makes little sense to ground any theory of the economy upon any specially favoured variety of labour process. As these varied forms came under the auspices of capital and become part of the domain of profitable investment, they enter for the capitalist into the realm of general or abstract labour, labour which enlarges capi¬tal. In the modern `Corporation' all forms of labour are employed without any distinction, and in the modern conglomerate Corpora¬tion some divisions carry on manufacturing, others carry on trade, others banking, others mining and still others `service' process. They live peacefully together, and in the final result as recorded in the balance sheet the forms labour disappear entirely in the forms of value." 40 (emphasis added)
The question sometimes arises that since the workers' wages and amenities are rising, of course due to their resistance struggle, whether the workers who are better paid or whose standard of living has risen, still possess a revolutionary potential.
Marx dealt with this question before he wrote Communist Manifes¬to. In his Wage Labour and Capital, Marx observed,
"When productive capital grows, the demand for labour grows; Consequently, the price of labour, wages, goes up. ...
"A noticeable increase in wages presupposes a rapid growth of productive capital. The rapid growth of productive capital brings about an equally rapid growth of wealth, luxury, social wants, social enjoyments. Thus, although the enjoyments of the worker have risen, the social satisfaction that they gave has fallen in comparison with the increased enjoyments of the capi¬talist, which are inaccessible to the workers, in comparison with the state of development of society in general. Our desire and pleasure spring from society; we measure them, by society and not by the objects which serve for their satisfaction. Because they are of a social nature, they are of a relative nature.
"In general, wages are determined not only by the amount of commodities for which I can exchange them. They embody various relations". 41
These words of Marx are quite significant in understanding the present situation when due to workers' struggles and various other factors, the wages and other amenities of the workers have gone up and their standard of living is not also at the same level as it was in the mid-nineteenth century. Capitalism leads to a wider disparity in economic terms between the owners and the wage-workers. The workers may achieve a higher wage level or amenities, but in comparison to that the wealth and prosperity of the owning or propertied class are rising in geometrical progres¬sion.
Particularly, in this era of capitalist globalisation and the triumph of finance capital, this disparity in income is reaching an unprecedented height. Even the protagonist of globalisation, the World Bank in their successive reports has expressed concern at this rapidly widening disparity and that more and more people getting impoverished and jobless and World Bank apprehend an increasing dissatisfaction among the toiling and poorer sections against the ruling regimes.
So it is not a question of how much rise has taken place in the wage level; the question actually centers round whether the toiling sections are getting their due proportion of the income generated in a country. This sense of deprivation and disparity actually gives impetus to working class militancy.
Considering all these facts and formulations, today's manufactur¬ing workers, skilled service sector workers, commercial workers in the mercantile firms and financial institutions like banks, insurances and the clerical and subordinate workers in the serv¬ice to the capitalists in the phenomenally expanded government sectors, the scattered and individual daily workers -- all natu¬rally come within the definition of the wage-workers while the industrial wage-workers form the core of the proletarian class.
Even the domestic workers who have no other way of sustenance than selling their labour-power, though they do not produce any value and not organised against capitalist exploitation but a highly deprived and exploited lot, are also getting proletaria¬nised within the broader definition of the term. But if one sticks to the definition of proletariat to the manual industrial workers only in the pattern of nineteenth century, then the proletariat will be reduced to a small and declining nineteenth century stereotype only and this definition will not be compat¬ible with the reality of the present situation when manual work¬ers in traditional industry are sharply declining giving place to service workers and commercial workers including part-time and casual workers.
All these factors taken together prove the untenability of the fashionable notion that the proletariat is a fast declining class or even disappearing and a `new middle class' is appearing on the scene with high level of wages and amenities who do not possess any militancy of struggle or revolutionary potential.
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