Volume 2, No. 9, September 2001

April 25, 2001 witnessed a successful bandh throughout Maharashtra. It was a joint action of the working class against the anti-labour policies of both the Centre and State governments.

The response was unprecedented. Not only was Mumbai paralysed all major towns and cities of Maharashtra came to a standstill. The anger of the working class against the government’s economic policies forced even the fascist Shiv Sena to support the bandh. It witnessed an unprecedented alliance of groups as diverse as teachers and hawkers and all the political parties except the Congress, NCP and the BJP. As a newspaper reported on the next day "the scale and spontaneity of the response showed the extent to which people are unhappy and angry with the Centre’s economic policies". Rasta rokos and rail rokos took place in many parts of Mumbai, only 50% of the local trains were running and the BEST bus service ground to a halt. Of the fleet of 3,200 buses only 10 attempted to ply—— these too were pelted with stones and 8 had their tyres deflated. Most outstation buses also came to a halt and many flights were cancelled. Demonstrations also took place in many parts of the city and also in other towns.

The bandh itself was a culmination of a series of protest actions that began in September last year, when the Trade Union Joint Action Committee (TUJAC), a loose coalition of trade unions affiliated to the revisionists, some erstwhile socialist parties and others that have been in existence for more than 30 years, held demonstrations against the centre’s globalisation policies. Later in the month of October 2000, during a militant struggle of the municipal workers to protect their right to bonus, an indefinite strike affected the water supply to the city resulting in a sharp polarization of middle class and ruling class opinion against the working class. In fact though the workers called off their strike after the Municipal Corporation passed a resolution acceding to their demands, the administration, backed by some vocal upper middle class ‘citizens’ organizations, got a stay on the disbursal of the payment from the High Court, which passed vicious remarks against the working class and their trade unions. Though the issue did not snowball further, the blatant bias of the courts heightened the simmering discontent amongst workers against the system.

Further mobilizations on related issues (the continued protests against the new economic policies, the struggle against the contract system, the continuing battle of the mill workers to save their jobs and for proper compensation after closures, the agitation by the state government employees against a proposed VRS etc.) strengthened the foundations of a broad joint front of independent left and progressive trade unions under the banner of the Trade Union Solidarity Committee, which has been active in the city for nearly 15 years, and led to the establishment of new fronts like the Thekedari Padhati Virodhi Kamgar Manch (Worker’s Platform against Contract System), and also brought about some rejuvenation in the functioning of the revisionist-led TUJAC. The pressure on the leadership of TUJAC, which was otherwise passiveand against any direct mass actions, to announce some sustained agitations was growing.

Thus when in early January the state government declared its intention to change some of the labour laws (notably amend the law on closures and the Contract Labour Act), a broad platform like the TUJAC became the co-ordination center for a series of protest actions, and other worker’s fronts like the TUSC and the TPVKM also joined hands with them. On February 15, for the first time since the historic textile strike of nearly two decades ago, a massive worker’s rally was organized in Shivaji Park, the largest ground in the city. Subsequently, the TUJAC organized a "Chalo Assembly" protest on March 15, at which the call for a Bandh on April 25 was publicly announced. Similar protest actions were being organized in many other cities and towns across the state.

In the meantime the budget proposals made by Yashwant Sinha further deepened the anger of the workers and even turned large sections of the lower middle classes against the economic policies. The Tehelka expose and the stock market scam successfully smashed whatever little credibility the NDA had left, and the flood of imported goods that entered the markets, after the lifting of the second batch of QRs, triggered off some resentment in a wide section of traders and consumers. The mood of anger against the ruling class got sharper.

In this situation, the ongoing battle of the workers became symbolic of the popular discontent and was reflected in the spontaneous support to the Bandh call on April 25. Though the Shiv Sena was involved and the bourgeois media projected this as being the major factor behind the success of the bandh, the truth is that for once there was none of the tension and threatened violence that normally accompanies a bandh called by the Sena when the issue does not enjoy popular support. This was a clear indication of the mood of the vast majority of the population.

Soon after the state government announced its proposals to amend the labour laws, the Sena, which is the largest opposition party in the state, declared its decision to protest against the move and started a campaign against it. The Sena leadership was clearly hoping to opportunistically capitalize on the mood of the workers, by declaring its opposition to the government’s decision, a step it hoped would bear fruit in future elections. The polls to the Municipal Corporation of Mumbai are due next year, and workers constitute an important section of the electorate, and with coalitions at both the center and the state, the possibility of a snap poll at other levels can also never be ruled out.

The move appeared to have boomeranged when the NDA government of which the Sena is a part, announced similar anti working class measures as part of its budget for 2001-02. Having already launched its campaign, the Sena could hardly pull out at this stage without being badly exposed and so went ahead with its own huge rally on March 21.

At this stage pressure from below began to act on the leadership of both the TUJAC and the Sena. Factory level leaderships in all unions and the sentiment among the ordinary workers, pushed leaderships on both sides, perhaps somewhat against their will, to build a loose coalition of sorts with some give and take on both sides. Thus while the parliamentary left was forced to accept that this was a battle they would fight alongside the Sena, the Hindutva party was forced into extending its support to the bandh already called by the TUJAC. The only change in the earlier announced 13 point charter of demands was that the TUJAC agreed to modify its demand of ‘Enron Hatao’ to ‘Reconsider Enron’ from the common platform, while continuing to raise the slogan under its own independent banners.

Thus emerged the rather unique alliance between two opposite sides of the parliamentary political spectrum, with a number of independent political forces participating as well. Following the bandh this loose coalition has jointly participated in a number of discussions with the government and has announced its intention to organise similar protests in other states as well.

On July 24 there was a fierce outburst of working-class anger in the sprawling Peenya Industrial estate . This was sparked off by a simple rumour that the Providend Fund Office had decided that workers who left service would not get their dues until they attained the age of 45. Though this was denied by the office, the violence continued unabated for the entire day, indicating the extent of the pent-up anger within the workers.

From the morning itself over 10,000 factory workers began gathering in front of the office of the Assistant Commissioner of PF. Soon the agitating workers blocked the main Bangalore-Pune highway and all peripheral roads, bringing traffic to a standstill. The crowd then stoned the PF office and ransacked it. As the violence escalated the police resorted to lathi-charges, bursting of tear-gas shells and even firing in the air. Pitched battles were fought, with the workers retaliating. Over 30 vehicles were set on fire, including 10 KSRTC buses, two trucks, a police jeep and a truck carrying 4 new vans. Over 100 vehicles were damaged, and 20 police personnel were injured, including an inspector and the Assistant Commissioner of Police. Section 144 was clamped in the area and over 100 workers were arrested. The agitation which began in the morning continued till late afternoon, with the workers launching another attack on the police at 3 pm. Finally, the situation could only be ‘brought under control’ by 4 pm.

Since the last decade of economic reforms, there have been unprecedented attacks on the working class. Never before, in post-1947 India have the attacks been so ruthless and all encompassing. Retrenchments, lay-offs, wage-freeze, contractualisation of labour, cuts in workers’ social welfare, reduction of PF interest, and now even changes in the labour laws — have all pushed labour to the wall.

Lakhs have been thrown out of jobs (see earlier article), and many lakhs more are in the firing line. The private sector companies are sacking workers by the thousands, the PSUs are rationalising, and now even state and Central government employees are being sacked. The Finance minister has announced that it plans to reduce its staff by as much as 10% in three year’s time.

According to a Business World survey of 72 of India’s top companies "job creation almost ground to a halt in the past five years, even though output, sales and profits grew". In the same period the total manpower strength of these companies recorded a mere 0.43% growth, while sales leaped by a massive 55%. In a city like Mumbai employment in the manufacturing sector declined, from 7.3 lakhs in 1981/82 to a mere 5.6 lakhs in 1993/94.

In addition workers real wages have been consistently falling. In the private corporate sector, wages as a percentage of net sales declined from 6% in 1991/92 to 5.2% in 1997/98. The government’s own yearbook of 1997 shows a sharp fall of wages in the manufacturing sector. If the index was 100 in 1983, it dropped to 70 by 1990 and to 46 by 1995, indicating that these workers earn less than half what they did in 1983.

Also workers’ welfare measures are being systematically cut. As it is India has one of the lowest social security expenditures in the world. It was a mere 1.8% of GDP compared to China’s 3.6 and Iran’s 6.1%. But, even what exists, is being further cut. PF will now get a much lower rate of interest, and health expenditure will have to be paid for. Workers’ ESIS hospitals (health insurance) are languishing, where employers have not paid as much as Rs.110 crores of their share. Public hospitals are now introducing user charges. So, for example, the Maharashtra government has recently increased all rates in government hospitals by over 100%. Registration fees have increased from Rs.2 to Rs.5, while surgery charges have increased three-fold.

Notwithstanding the slowdown in the economy and drop in sales growth, the increasing exploitation of labour resulted in big profits to the biggest industrial houses and huge salary hikes to the chiefs of these outfits. So, for example, in the first quarter of this financial year aggregate profits of the top 10 companies shot up by 56% (Rs.9,914 crores) over the same period last year. These same companies, while squeezing the workers, saw their chiefs take huge salary hikes. Dhirubhai Ambani of Reliance got his salary hiked, two years back, by 346%, and again last year by 74%, giving him an annual income in the year 2000/01 of Rs.9 crores (i.e. Rs.2.5 lakhs per day). The other two Ambanis also took big hikes in salary, taking payments of over Rs.7 crores each in that year.

Now, after launching such ruthless attacks on the working class, both Centre and State governments are introducing changes in the labour laws that seek to thoroughly bind the workers hand and foot. As it is, throughout the 1990s, the workers were on the defensive in the face of persistent attacks by the managements. This is indicated by the number of lockouts far exceeding strikes. The ratio of man-days lost as a result of strikes, to man-days lost as a result of lockouts was 74% in 1998. This fell to 25% in 2000.

Yet the Central government has set up a 13-member Task Force which has recommended a string of comprehensive changes in the existing labour laws, to curb worker’s activities even further. One major change is in the Contract Labour Act, which will allow employers the free use of contract labour and remove all existing restrictions. It will also introduce labour flexibility allowing the managements the freedom to hire and fire. It will also introduce curbs on strikes, wherein it must be preceded by a "strike ballot". A strike would only take place if a majority of workers vote in favour of it. Bills drafted along the lines of this Task Force are planned to be introduced in the monsoon session of parliament.

In the closed Mafatlal Mills of Mumbai five workers have committed suicide and two have died of heart attacks. The workers of the closed Khatau mills of Mumbai, in their affidavit in the high court, have appended a list of 59 starvation deaths. In Mumbai, of the 2.5 lakh textile workers only 50,000 remain in their jobs. Even these are not likely to last. Those who could, have returned to their villages to eke out an existence; while the rest live in conditions of semi-starvation selling vegetables or hawking goods/food on the streets.

Such is the plight of a large number of retrenched workers throughout the country. With the revisionist and bourgeois unions collaborating with managements and keeping workers’ struggles within government-accepted bounds, their struggles have been continuously betrayed. Legitimate compromises in union struggles (in order to gain strength through each battle) is understandable, total capitulation is not. Continuous defeats lead to enormous demoralisation and frustration amongst the working class and employees. Not only the textile strike, but even the recent militant battles of the government employees (electricity, postal, state government staff, etc) and BALCO workers/employees, have all resulted in defeats due to faulty leadership. The revisionists, though having sizable following in all these sectors, failed to unite them in a common battle, and allowed them to be crushed piecemeal. Besides, with the revisionist/bourgeois union leaders having immersed the workers and employees in decades of economism and legalism, their hitting capacity has been temporarily slunted. And now, faced with an all-out offensive of the employers and government, they are, at present, ill equipped to effectively fight back.

Today, due to intense pressure from below, the establishment unions have been forced to take up some struggles, lest the party’s backing them lose their vote-banks. But, compared to the extent of attacks on them, these struggles have been very limited. Some have acted as mere ‘safety valves’ to pre-empt Bangalore-type outbursts.

It is only through revolutionary leadership and revolutionary forms of struggle that the present offensive can be systematically fought back. This has been proved by the historic struggles of the coal mine workers of North Telenganna under the SIKASA (see Box) banner. No doubt, the growing unity of the workers, as reflected in the Maharashtra bandh, is a positive step forward. This will have to be channeled in a revolutionary direction to be effective.

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