Report of the Secretary General to the XXIII National Council Meeting of Confederation of Central Government Employees & Workers to be held at New Delhi from 4th to 6th December, 2009.
On behalf of the National Executive of the Confederation, I have the proud privilege of presenting this report covering the period 2006 to 2009 to the XXIII National Council Meeting being held at Delhi from 4th December, 2009. The report is accompanied by the audited accounts for the financial years 2006-07, 2007-08 and 2008-09.
1.1 The last National Council meeting of the Confederation was held at Thiruvananthapuram, capital city of Kerala. We are meeting once again in the national capital on 4th December, 2009. When we met at Thiruvananthapuram in September, 2006 we were awaiting the notification setting up of the 6th Central Pay Commission. It was during the deliberations at the subject session of the Council Meeting that we were informed of the issuance of the notification. Till the beginning of 2008 the Confederation, its various affiliates and other Central Government employees organizations were busy in formulating their approach and submissions to the 6th CPC. Most of the organizations had to be saddled with the issues and problems emanating from the report of the 6th CPC in the latter part of 2008.
1.2 We are meeting at New Delhi at a very critical juncture for world capital economy is still undergoing the strain of the unprecedented global financial crisis which has impacted the economies of both the developing and developed countries across the world. Despite the fact that the working class had no role in shaping the principles and policies of economic administration of most of the nations in the world, it is agonizing to note that they were made to bear the brunt of the global financial crisis. The situation in which we are placed makes it mandatory to have a deeper understanding of the socio-political happenings of the world to equip ourselves to rightly formulate our approach. While welcoming you all to the capital city we hope to receive your suggestions and interventions during the discussions to enrich this report.
1.3 Before we proceed further, let us join together to pay homage to our comrades who laid down their lives for the emancipation of the working class during the period under report. Our profound sympathy goes to those bereaved by the loss of their family members in the series of terrorist attacks that took place in various parts of the country during this period. The city of Mumbai, parts of North Eastern Region, Jammu & Kashmir, Gujarat, Uttar Pradesh, Delhi, Karnataka, Andhra Pradesh, Rajasthan were some of the states which had to bear the brunt of the terrorist attacks during this period. Let us pay our respectful homage to all those innocent people who were killed in those dastardly attacks. During this period various parts of our country witnessed the fury of nature of an unprecedented nature by way of floods. Quite a number of our countrymen lost their lives due to this uncontrolled natural calamity. We bow in memory of all of them and convey our heartfelt condolences to the bereaved members of their families.
1.4 During the period under report, the country lost very many eminent personalities who excelled in their own field of activities. Let us join together to pay our respectful homage to these great men:
Shri Vijay Tendulkar, eminent playwright, Shri Mahendra Kapoor, famous singer, Shri BR Chopra, noted Film personality. Shri Ustad Bismilllah Khan, the famous Sehnai Maestro, Ustad Ali Akbar Khan, the legendry sarod maestro, Gangubai Hangal doyen of Hindustan Classical Music, Shri Naushaad Ali, the noted Music composer, Shri Hrishikesh Mukherjee, noted film personality, Mr.Naguib Mahfouz, the first Arab Writer to win Nobel prize in Lierature, Shri OP Nayyar, noted film music composer, Mr.Sydney Sheldon, the famous novelist, K. Balagopal, Eminent rights activist and lawyer, Leela Naidu, former Cine Actress, Manmath Nath Das, Historian and former Rajya Sabha member, Michael Jackson, one of the biggest celebrity and King of Pop music Kamala Das, noted award winning writer and painter, Vishnu Prabhakar, the noted Hindi poet and Gandhian, T.N. Nair, veteran journalist and special correspondent of the Hindustan Times, Cyril K Nagesh, veteran Tamil movie actor-comedian, Bharat Murali, veteran Malayalam actor and national award winner, Shri G.P.Sippy, the famous film personality, Shri Ajit Panja, former Central Minister, Shri Bansilal,former Central Minister, Smt.Nandini Satpathy, former CM of Orissa, Shri Suraj Bhan, former Chairman SC/ST Commission, Shri Kanshiram, founder of Bahujan Samaj Party, Shri Baba Saheb Bhosale, former Maharashtra Chief Minister, Shri S.R.Bommai, former Central Minister, Rao Birender Singh Former Haryana Chief Minister, Y.S. Rajasekhara Reddy, Andhra Pradesh Chief Minister, Subhas Chakraborty, West Bengal Minister and one of the most popular leaders of CPI(M), Gayatri Devi, former Maharani of Jaipur, Homi Daji, Veteran Communist, CPI(M) leader Prabhakar Sanzgiri a trade unionist, R.Venkataraman, former President of India, Viswanath Pratap Singh and Sri Chandrasekhar, former Prime Ministers of our country, Com. Harikishan Singh Surjeet, former General Secretary of CPI(M), E. Balanandan, CPI(M) a veteran trade union leader, P. Mohan, former CPI(M) M.P. from Madurai, Com. Chitrabrata Majumdar, General Secretary of CITU, Com. J.P. Choubey, General Secretary of AIRF, Com. S K Dhar, veteran leader of Loco Running Employees of the Railways, Com. Ahalya Ranganekhar a beloved leader of the working class, Com. Pathik Banerjee, former Vice President of the Confederation and Com. Ajay Bhowmik, former Secretary of the Co-ordination Committee of West Bengal, Shri Bobby Fischer, former World Chess Champion(US), Shri Alexander Solzhenistsyn, Nobel Laurate, Ms.Betty Friedan, founder of modern feminist movement, Shri John K Galbraith, ex-US Ambassador to India, Mr.Kurt Waldhiem, former UN Secretary General, US Senator Edward Kennedy, a towering figure in the Democratic Party, , Corazon Aquino, Philippine democracy icon and former president, the Brooklyn-born Irish-American 'Angela's Ashes' author McCourt, former South Korean President Roh Moo Ayun, Marilyn French, one of the most renowned feminist writers, Field Marshal Sam Manekshaw, the Military hero of Bangladesh War in 1971; Shri Baba Amte, the Survodaya leader, Smt. Nirmala Deshpande, Suvodaya leader, Gyan Patnaik one of the Indian's earliest women pilots, Indian-born US nuclear physicist Shiva Subramanya, were those who passed away during this period.
International :
2.1. Economic Scenario
2.1.1 Our report usually presents an overview of the international situation for it has a bearing on our socio-economic conditions. In our last report we had detailed as to how the ushering in of the neo-liberal policies of Globalization conceived as a means to rescue the deepening world crisis of capitalism has accentuated the level of hunger, poverty, unemployment, illiteracy etc in the world. The world scenario has remained grim, complex and divisive throughout the last three years. With the balance of power absolutely in favour of the advanced capitalist countries, millions of people in third world countries languished in misery and penury, their savings having been decimated. Globalization has immensely helped in the consolidation of monopoliy firms and as a concept it remained an instrument of exploitation of people all over the world. The World Bank, the IMF and the WTO continued to impose reforms on the third world countries in the name of structural adjustment ostensibly making those countries to believe that the new capitalist system would bring them prosperity. It was, as many of them realized later, to facilitate the movement of capital, especially finance capital. A great part of the GDP of the third world countries has been transferred to the rich advanced countries through the powerful transnational corporations. The Global financial crisis that has now engulfed the entire advanced capitalist world and the onset of an imminent global recession reminiscent of the great depression of 1929-30 carry significant implications to developing nations. Before we go into the contours of the crisis, it would be worthwhile to look at the world scenario as emerges from the pursuance of the neo-liberal globalization policies at the instance and prescription of the World Bank and IMF.
2.1.2 During the last three years, world witnessed sharper division between the rich and poor countries. Within nations which adopted the neo-liberal economic policies leaving aside the socialist pattern of planned development, while the number of billionaires did increase; billions of people were added to the list of people below poverty line. The world saw the emergence of corporate power, omnipresence of finance capital and concentration of wealth in fewer and fewer persons. According to the World Investment report, the transnational corporations from advanced countries had the huge share of Foreign Direct Investment in third world countries [i.e., about 84%] The FDI inflow during 2006 had, the report states, reached $1306 Billion{56.2 lakhs Crores}. This was stated to be achieved though cross border merger and acquisitions made possible from the high rate of profit garnered by depriving the workers their rightful wages and social security benefits. The informalisation of labour, the withdrawal of all social security measures like pension, healthcare etc., monopolizing production process enabling spiraling prices of commodities, all advented with the active support of the ruling class, helped the TNCs to raise to unprecedented levels of profitability. Most of the FDI has taken place through the reinvestment of the huge profits, garnered by employing unfair and foul means by the companies as evidenced from the observation in the report that the reinvested earnings being an important component of inward FDI, accounted for 30% of total inflows in 2006 touching about 50% in developing countries alone. Of the $865 Billion of FDI[37.1 lakh crores], USA had the huge share of $217 Billion, followed by France(115) Spain (93), Switzerland(83), UK and Germany(79 each) Belgium(50) Canada (46) and Italy(43). This was the extent of FDI in one year alone. Global FDI reached a new record high in 2007 reflecting the fourth consecutive year of growth with inflows of $1833 Billion, the previous record set in 2000 was surpassed by some $400 Billion. All the three major groups of economies, developed countries, developing countries and the transnational economies of South East Europe and the Commonwealth of Independent States saw continued growth in FDI. Merger and acquisition are conceived as a means to reduce competition and thus increase profits. 6974 such merger took place in 2005-06 involving a sum of $880 Billion(Rs.6.2 lakh Crores). The amount involved in such transaction in the subsequent years were equally huge. The report has revealed that the TNCs strengthened their grip over world economy, especially in the production of goods and services. The increased percentage of the sales of MNCs in 2006 was 16%, profit 10% and export 12%. 1/3rd of the world exports was by MNCs, ably assisted by the WTO to achieve this phenomenal feat. The role of manufacturing sector declined , the services sector, accounted for 66% of the FDI flow in 2005. The total assets of three major companies in 2006 was a staggering amount of $51,187 Million (Rs.2.2 lakh Crores). India received $17 Billion(Rs.7.31 lakh Crores) in 2006, 15.3% more than in 2005 and $23 Billion in 2007. Substantial FDI in automobiles, telecommunication, real estate and other service industries including large scale investments such as Vodafone, Oracle, Holcim and Matsushita also boosted FDI inflows. The report has stated that more than a quarter of retailers surveyed opened their first store in India in 2007[CB Richard Ellis, 2008]. The total value of FDI assets in India in 2006 is stated to be $50.7 Billion(Rs.2.18 lakh Crores) There had been 163 acquisition/merger in India in 2006,which was 80 in 2004 and 126 in 2005. Most of the developing countries have been compelled to provide concessions in the matter of taxation, repatriation of profits, infra-structure facilities and non-adherence to labour laws. The investment report 2008 has indicated that over the past 20 years, developing countries have opened water infrastructure industry to the private sector. 64 developing countries have been reported to have introduced private participation in the water supply enterprises. Full divestiture of municipal water supply network is reported in developing countries like Brazil, Chile and Thailand with only Chile opting for a fully private system nation-wide. It is stated that TNCs having three specific advantages over domestic private water companies, i.e., global knowledge, financial capacity and economic stability have garnered most of the projects of water supply privatization contracts.
2.1.3 As per the ILO's Global Employment Trends Report, the loss of employment would touch 51 million (5.1.Crores) and the unemployment is likely to touch the 19 Crore figure by the end of 2008. Of the employed, 77.2% is said to be in the vulnerable category, having no social security benefit or trade union rights. The report also states that 43.5% of them get wages below $2 per day and 16.4% gets even less than a dollar per day. During the course of last 5 years, the prices of essential food commodities rose globally by 80% making a wage earner to spend about 60 to 80% of his earnings on food items alone.
2.1.4 The general comment(12) of the United Nations Economic and Social Council envisages that the right to adequate food is realized when every man, woman and child has physical and economic access to adequate food. The Global Hunger Index published by the International Food Policy Research Institute shows that 33 countries [which include India] have levels of hunger that are alarming or extremely alarming. South Asia and sub-Saharan Africa continues to suffer from high levels of hunger. People who already had too little food are now finding that they can afford now less due to the spiraling rise in the prices of essential food commodities. Hunger has become one of the most important problems the world faces. 923 million people in the world go hungry every day. 907 million of them live in developing countries. While Peru and Kuwait reduced global hunger index by more than 70%, Congo increased it by more than 60%. In the 88 countries index, India stands at 66 and is grouped in the cluster of countries where the Global Hunger Index is considered as alarming. 967 million people in the world are reportedly living for less than $1 a day and 17% of them has less than even half a dollar a day. It is reported that the global price rise of rice had been 4 fold since 2003 and 3 fold in the case of corn. India has the largest food-insecure population i.e. 200 million people.
2.1.5 The Global Financial Crisis
The world capitalism had been in the grip of a severe crisis. The bourgeoning finance capital, its foray into most of the third world economies with the assistance of the three propellants, IMF, World Bank and WTO brought about an upswing in the market, a spurt in the consumption levels. The US hegemony; growing subservience of the developing countries to the transnational corporations, controlled by the rich nations of the west and the collapse of the socialist countries and the consequent emergence of a unipolar world political order abetted the buoyancy in the market and bubbles of economic growth of exponential dimension. Not only it widened the gap between the rich and poor nations, it also sharpened the division between the poor and rich within a nation state. As seen from the report of the International Food Policy Research Institute, the globalization brought about poverty and hunger to millions of people.
2.1.6 When a stunned world witnessed the collapse of the economy of the richest capitalist country of the world, the United States, on 15th September, 2008, it was unbelievable for the proponents of the neo-liberal globalization policies. It was the great ambition nurtured by the Americans to dominate the world that was dashed to the ground on that eventful day. The American economy, which had a debt burden of about $10 trillion was in a severe financial crisis. The collapse of the real estate bubble earlier had set in a recession and had given rise to a world-wide credit crunch, because of the huge losses suffered by the Banks and other financial enterprises. Stock markets across the world had witnessed successive downslide in the beginning of 2008 fearing an inevitable recession of the US economy. The crisis that engulfed the US economy is of such magnitude that the ills of globalization prescribed as panacea by the World Bank and IMF, became visible to all.
2.1.7 The collapse started with the fall of Bear Stearns, a reputed and pretty old Wall street investment Bank, characterized by the media as the Wall Street Crisis. The investment Bank was taken over by JP Morgan Chase. The Federal Reserve came out with an emergency funding proposal, for the first time in the post-depression era of United States. Following the trail, Lehman Brothers, Merryl Lynch, Goldman Sachs, Morgan Stawey, Citigroup, Wachorla, Washington Mutual and the biggest American insurance company, the American International Group(AIG) (which has a tie up with Tatas in India) sunk. George Bush administration had to propose a bail out of more than $700 Billion[one should describe it as a nationalization of a sick unit], which was first refused by the American Congress but later relented to save off the capitalist system to which the American polity is wedded, be it ruled by democrats or Republicans. The root cause for the avalanche that has threatened the existence of not only America, but also the whole capitalist countries in Europe and the whole world economy is pointed to the Depository Institutions deregulation and monetary control Act of 1980 under the Presidency of George Bush Sr. There were further deregulation of the control mechanism during Bill Clinton Presidency in 1999. The controversial decision to deregulate is stated to be taken under pressure from JP Morgan, Citi group and Bankers Trust. It appears that there is not a single economy of any country be it from the developed, developing or even those which still maintain a planned and controlled economy like China, which is not impacted by this crisis.
2.1.8 Reckless lending in pursuit of profit was the hall mark of business of most of these investment banks and other financial enterprises in the era of neo-liberal dispensation. Resort to sub-prime lending without any sound collateral and without regard to the repaying capacity of the borrower, all sorts of derivative instruments which are known as CDOs[collateralized debt obligations] and CDS[credit default swaps] are stated to be the immediate cause of collapse by the financial wizards. The value of CDS alone is estimated at about $60 trillion. Whatever might be the immediate or root cause, the fact is that the crisis has engulfed the US economy and the consequent recession is not going to pass the corner so soon. It has endangered the whole edifice of the capitalist world, the tremor of which was visible in the collapse of the sensex of almost all stock exchanges throughout the world. The fall of the BSE sensex which was hovering over 20000 mark drastically to less than 8000 is an indicator of the gigantic impact the crisis has brought about on the economy of all countries, especially those who embraced the globalization strategy for growth. The entire economy of Iceland is said to have been destroyed. A United Nation's agency has predicted that the global financial crisis will bring 20 million jobless. The slowdown in the US economy has resulted in the loss of 159000 jobs in August alone out of the 7,60,000 people retrenched so far. It is reported that ten lakh people have been rendered houseless in US. The rate of unemployment has reached to 6.1% the highest in the past 5 years. . The Pension Fund of US alone has lost over $2 trillion and those who retire face a very bleak future. Barrack Hussain Obama, the new President of USA, who has taken over the reins of the so called richest nation of the world, may perhaps inherit a bankrupt economy. The much talked about American dream, American way of life is now a mirage. With no old age pension, no health care and it appears no roof and no food are going to be the immediate fate of the Americans and sadly all those who were hitched to the great American bandwagon. The ILO Director-General Juan Somaia wanted Governments, employers and workers to come together to resolve the crisis and to promote the "real economy". IMF data reveals that European Banks have equal exposure to bad housing debt as US Banks and are on the verge of ruination.
2.1.9 The remedial measures so far taken by almost all western capitalist countries which are hit by the avalanche of the global financial crisis like Germany, France, Spain, England, Italy et all is diametrically contrary to what IMF and other Bretten wood institutions had been prescribing to third world countries. The IMF had advocated and continue to do so to developing nations that deregulation, privatization and open trade as the certain path for prosperity even in the face of extreme poverty and widespread unemployment and economic crisis.
2.1.10 By October 2009 the number of United States Bank that failed as per the report of the regulators is 98 to 100. The number of persons who have lost jobs in 2008 as per the report of United States Bureau of Labour Statistics is 5.6 million. As per the American system of reporting if an unemployed person stopped looking for jobs in the past three months for the reason that he has lost hope of finding one, his name is not included in the list of unemployed. Even though officially the rate of employment is 10.2 %, in effect it must be around 20% as half a million unemployed Americans gave up looking for jobs in October 2009. The picture drawn by the OECD is also now different. The OECDs employment outlook 2009 says "there are growing signs that the worst may be over and the recovery may be in sight, but the short term employment outlook is grim. The OECD expects the unemployment rate to remain over 10% through 2010. In Japan, the unemployment rate was 15% - 24%, United Kingdom 10%, Ireland 12.5%, France 11%, Spain 18.5%, Brazil 9%, South Africa 26.6 %, to state a few countries who are hit by the recession.
2.1.11 One is compelled to go into the history to look at what brought about the resurrection of American economy under President Roosevelt in 1929-30 when it faced almost a similar situation. The Keynesian economics which came to the President's rescue advocated an interventionist government policy. Lord Keynes is the father of modern theoretical macro economics. On his advice, during the great depression of 1930s President Roosevelt created the "New Deal" to provide relief for the unemployed, recovery of the economy and reform of the economic and banking system through various regulatory and implementing agencies, the prominent of them were the Federal Deposit Insurance Corporation, Tennessee Valley Authority and the US Securities and Exchange Commission. Some of his other legacies were the social security system and the National Labour Relations Board. All the programmes of the "New Deal" were derived from the Keynesian economics. Roosevelt, ultimately succeeded in pulling America out of the depression and created the regulatory mechanism for the onward surge of the economy. President Obama face the same crisis situation what Roosevelt faced in 1933. The contention of Lord John Maynard Keynes [famous capitalist economists] was that it is wrong to assume that competitive markets will in the long run, deliver full employment or that full employment is the natural self-righting equilibrium state of monetary economy. On the contrary, under employment or under investment are likely to be the national state unless active measures are taken by the State. The moot question is whether or will the proponents of globalization have the courage to effect course reversal in the interest of people. The crisis has proved that the neo-liberal economic policies which has dominated the world since 1980 is no panacea and brook no delay for its reversal and all sections of the working people throughout the world must join together to organize the fight back. Beyond all, the global crisis has demonstrated in no uncertain term that capitalism is crisis ridden, is based upon exploitation for its survival, perpetuate poverty and can never be an alternative to socialism.
World Trade Organisation (WTO):
2.1.12 World Trade Organization, which came into existence as a successor to the GATT has about 150 members. Together they account for 95% of the world trade. The decisions at the WTO are to be made by the entire membership by consensus. There had been a constant and incessant conflict of interest between the developed and the developing countries in all the rounds of discussions that has taken place. The intellectual property rights on public health was one of the most contentious issue at Doha besides the agricultural related matters. The Doha round of discussions could not bring about a consensus due to the different views between the developed and the developing countries. WTO has to be understood as an instrument to perpetuate and consolidate the interests of US and European nations in the global mechanism. In June, 2007 to sort out the difference between these two important blocks, the G4 Committee consisting of the EU and US, Brazil and India was set up to thrash out the difference between these two blocks concerning agriculture and bring about a consensus. In June, 2007 the Committee met at Potsdam to thrash out the difference between these two differing blocks in the matter of agriculture. This mechanism was thought of as the Doha negotiation had been thrown into a crisis. The Committee met at Potsdam, Germany on 22nd June, 2007 ended in a spectacular failure. It was supposed to be the last big effort to salvage the troubled Doha round launched in Doha in 2001. The round collapsed midway because of the irreconcilable position between the USA and the EU and Brazil and India on the other. The developing countries realized that the agricultural liberalization was a bluff. The EU and US were actually offering nothing and for their offer of zero they were trying to extract substantial benefit from the developing countries in NAMA and services as well as in the agricultural market access. More than agriculture which was rendered the most different areas in Doha negotiation NAMA took the central stage and the Achilles heel. Any agreement in negotiations on agriculture India would be compelled to pay dearly and the meeting took place in the background of the statement made by George Bush that India would make a positive contribution to an agreement on the DDA at Geneva. The US demanded that the developing countries must institute a stringent subject safeguard mechanism in agriculture which made it difficult for developing countries to protect them against import charges. Besides on the US farm subsidy issue, the cotton issue, the industrial tariff proposal issue and more, majority of the developing countries were not ready to accept the US and EU decisions. There had been an upsurge in the interest of the developing countries to defend and promote their food security and farmers livelihood. With the failure of the July, 2008 negotiations the WTO's Doha negotiations has suffered a serious set back but it must be noted that these talks have a habit of bouncing back to life some times in the future. India must realize that the proposal mooted for discussion had been basically unbalanced and unfair against the interest of developing countries. The rate of exchange between what the developing countries get and what they have to give up was unequal.
2.1.13 Free Trade Agreement amongst ASEAN countries
The ASEAN free trade agreement which the Government of India entered into in September 2009 and which will come into force from 1st January 2010 has triggered widespread protest amongst the farming communities in Kerala, Karnataka, Tamil Nadu and North East regions.
There had been intensive agitational programmes in the State of Kerala participated by all sections of the people due to genuine apprehension that the agreement was conceived to protect the Indian trade interest at the cost of farmers cultivating Coconut, Tea, Coffee, Pepper, etc. The Govt. of Kerala has taken strong exception for entering into an agreement which would jeopardize the livelihood of the farmers of that state. The allegation made by the State of Kerala has not been totally disowned by the Government of India. It is rightly noted that the Free Trade Agreement with South East Asian Nations was a prologue for effecting stand in the next round of discussions at the WTO. The proponents of the neo-liberal economic policies had all along been claiming that a free trade would in the long run help the Indian economy. India entered into a bilateral free trade agreement with Sri Lanka a few years back. The impact that it has created on Indian agriculture especially of the States like Kerala and Karnataka is well known. One agreement with Thailand in this regard also does not give a different story. Suffice it to say that in the year 1991 i.e. the year in which the neo-economic policies were ushered in the Indian trade deficit was less than 6 billion dollars which rose to about 120 billion in 2008. In the case of ASEAN countries we had a trade surplus of 81 million dollars in 1991 which has become a deficit of 7265 million dollars in 2008. There had been no discussion on this important and vital issue either inside or outside the Parliament.
2.1.14 G-20 Summit
Group of 20 is a informal platform of Finance Ministers and Central Bank Governors established in 1999 to bring together industrial and developing economies to discuss important issues in the world economy. It is supposed to promote open and constructive discussion between the industrial and emerging market countries on global economic stability. Its another objective is to support growth and development across the world. G-20 has 19 countries as its members besides the European Union. EU is represented by Council Presidency and the European Central Bank. Besides, the participating countries the meeting is always attended by the Managing Director of the IMF, President of the World Bank and the Chairperson of the International Monetary and Financial Committee and Development committee of the IMF and World Bank. It is stated that the G-20 brings together member countries representing about 90% of the global gross national product and 80% of the world trade. India is a member of the G-20.
The last meeting of the G-20 was held at Pittsburgh, Pennsylvania in the wake of the continuing economic global recession. It was announced that G-20 henceforth would be the forum for international economic cooperation. It was an admission of the fact that without the involvement of the emerging economic powers like China, India, South Korea, south Africa and Brazil the issues confronting the world capitalist system cannot be effectively addressed. The fact that by about 2020 the share of the developing countries in the total GDP would increase to 50% is indicative of the slow decline of the US domination in the world capitalist system. While deciding to continue with the stimulus packages the summit has reiterated for an urgent conclusion of the WTO trade related discussions. No significant decision was taken to arrest the recurrence of the present economic recession. However, the summit was compelled to take the decision of transferring 5% of the shares in the IMF to emerging economies, a small dent on the dominating position of the advanced capitalist countries.
2.1.15.UN Frame work convention on climate change
The international meting of the participating countries in the UN Framework convention on climate change to be held before the Copenhagen conference took place in December, 2009 at Barcelona, Spain. There should have been a real sense of urgency amongst the participants in view of the deep climate crisis caused by the greenhouse gas emissions. The Copenhagen conference is likely to end in high sounding rhetoric, vague promises and further negotiations later given to the positions being taken by the US and its close allies. The prime reason for the collapse of talks on such a vital issue is the adamant refusal of the developed countries to accept the emission cuts and the ploy to transfer the substantial burden of the responsibility on to the developing countries.
2.2 Political
2.2.1 The Georgian military Conflict:
One of the major political developments that took place in the period under report is the conflict between Georgia and Russia. It should not be construed to mean a dispute between two neighboring countries. Georgia was no doubt a part of the erstwhile Soviet Union. It is today fully backed by the US in the background of its strategic design in the Caucasus. US interest in the oil rich Caspian region and its intention to expand the NATO up to Russia's borders played a vital role in triggering this conflict. The Georgian President Mikhail Saakashvili is a close ally of the USA. Ossetia and Abkkhazia are predominantly Russian speaking regions in Georgia. Russia has maintained a peace keeping force in these two regions due to the incessant conflict between the Georgian population and the Russian speaking people of Ossetia as per the treaty signed between Georgia and Russia in 1992. On August 8, 2008 the Georgian army attacked South Ossetia and killed many soldiers of the Russian Peace Keeping Force triggering a bloody conflict between Georgia and Russia. Russia has decided to back the declaration of independence by these two regions which are integral part of Georgia. Georgia has decided to become part of the NATO at the instance of the USA. The oil pipeline from Azerbaijan to Turkey called the Baku-Tbilisi Ceyhan (BTC) is funded by the US and is the only pipeline which connects Europe bypassing the Russian territory. The conflict between Georgia and Russia will have an impact in the coming days on the geo-political situation around the world due to the interest of USA. Russia has now moved to close its links with Syria and Iran and may perhaps back out from the proposed sanction to be imposed on Iran citing its nuclear ambition. Russia has also moved closer to Venezuela and they have planned a naval exercise in the Caribbean. The escalation of the conflict will have far reaching impact in the international arena.
2.2.2 Latin America
Uruguay, Bolivia, Peru, Mexico, Brazil, Nicaragua, Ecuador, Venezuela were the countries in Latin America which went into polls during the period under report. In Uruguay and Bolivia left parties came to power. In Peru the popular candidate was defeated by the Social Democrat, Alan Garcia, in the second round. In the presidential election of Mexico, Manuel Obrador was narrowly defeated by the right wing candidate, Calderon, in an election marred by large scale manipulation and rigging. Despite this unfair method employed the victory of Calderon was by a margin of only 0.56% votes. The people of Mexico did not take this lying down. The month long agitation in the central plaza of Mexico city did not succeed. After the electoral Tribunal refused to recount the votes, Calderon was declared as the victor. The onward march of Mexico along with other Latin American countries to a left ideology has only been temporarily halted. In the Brazilian elections, President Lulu elected in the second round with a 60% vote. The elections were an indicative of gaining popular support for this charismatic leader of Brazil. In the Nicaraguan elections Daniel Ortega of Sandinista was elected as President owing allegiance to the left ideology. For this reason alone the US tried its level best to prevent Ortega to be elected as President.
It has threatened economic non-cooperation against Nicaragua. Rafael Correa, the left wing candidate won the Ecuador election with a 60% vote against his billionaire rival. Chavez was re- elected with a 62.8% vote in Venezuela. Chavez has taken over the oil fields in the Orinoco belt in Venezuela. However his proposal for sweeping powers to the President was turned down in a referendum that was held after his election. In Bolivia the entire oil gas sector has been nationalized. Paraguay witnessed the overthrow of the Colorado party which ruled that country for 61 years in the electoral battle on 20th April, 2008. The spectacular success of the 9 party alliance is a great set back to the US machination in that continent. Election in Paraguay has given fillip to the Latin American people in its struggle against imperialist globalization. The hegemony of USA on Latin American countries is certainly on the wane. One of the spectacular developments during the period was the joining of Bolivia in the ' Bolivian alternative for the American' along with Cuba and Venezuela. The three countries have signed a Peoples Trade Agreement for an internal process based on mutual interest and solidarity.
In a bizarre incident in Honduras, the duly elected President Zelaya was arrested and taken to Costa Rica on 28th June 2009 on the orders of the Supreme Court. It is to be noted in this connection that Honduran judiciary is deeply politicized with the highest judicial office being distributed between the two main parties. Of the 17 judges, 8 are selected by the liberal party and 7 by the national party. Justice Tomas Arita Valle who ordered the arrest and deporting of the President in fact was the vice minister for foreign affairs in the national party government of President Ricardo Maduro. Zelaya made two attempts to return to the country which were rebuffed and eventually came clandestinely and sought asylum in the Brazilian embassy. Hondurans witnessed violent demonstrations.
The resistance to the coup in Hondurans is continuing. The coup Government has imposed a state of siege and is trying to curb the protest using even high handed means. Since the coup has the backing of big business and the right wing political parties, the USA does not want Zeyala to become the President again even though it has officially disapproved the coup.
2.2.3 Palestine and Israel
The January 2006 election in Palestine brought Hamaz to power. This led to the economic blockade to the Palestinian people at the instance of USA and Israel. The US and Israel had co-coordinated their effort to overthrow the elected Hamaz government despite they being democratically elected to power. Israel still maintained that the Hamaz is a terrorist organization. They have stepped up their onslaught against the Palestine people to discredit the Hamaz government. Israel has withheld more than 50 million US$ being the tax collected on behalf of the Palestinian authorities to Hamaz. A sustained military offensive against the Palestinian people had been mounted by Israel. Hundreds of Palestinians were killed in its recent military intervention in the Gaza strip in the name of retaliatory action against Hamaz with the result a humanitarian crisis of a grave magnitude has arisen in Gaza and West Bank. The United Nations human rights council investigated the war crimes and indicted Israel in its 575 page report. The council had commissioned Judge Richard Goldstone to investigate the events that took place in the Gaza and West Bank. The report was released on 15th September 2009. The report has urged the Security Council to refer the cases of human rights violation to international criminal court in the Hague. Israel has refused to co-operate in the investigation and has blocked Goldstone from entering Israel.
2.2.4 Cuba
As per the Cuban constitution the first Vice President of the Council of States shall assume the presidential duty upon the illness or death of the President. Raul Castro is the first Vice President for the last 32 years. On 31st July, 2006 Castro delegated his duties as President on his brother Raul Castro as he was suffering from acute intestinal crisis with sustained bleeding. Castro could not attend the nation-wide commemoration of the 50th anniversary of Grammana Boat landing on 2nd December, 2006. Castro is reported to have improved his health in February, 2007. The 50th summit meeting of the non aligned movement was held in Havana, capital of Cuba on 15th and 16th September, 2006. The declaration adopted at the submit has reiterated its clear opposition to any form of neo imperialism. Condemning all forms of terrorism the document had declared that the struggle for national liberation against foreign occupation cannot be called terrorism. Under the leadership of Cuba the NAM will play an active part in opposing the US hegemony in the world order.
2.2.5 Iraq:
In our last report we indicated that US had deployed more than 1,40,000 troops in Iraq. Despite this massive influx of American armed personnel the Iraqi resistance against foreign occupation of their land has been on the rise. It has taken different shapes; kidnapping and mindless violations are becoming the order of the day. The USA and Israel have been taking serious efforts to detach Kurds from Iraq. The American occupation has only succeeded in abetting terrorism in this country. Iraq's slide into a civil war condition have thus been accentuated. Sectarian strife between Sunny and Shia militia has bloodied the scene. Hundreds of people are dying in Iraq every day. In June 2006 George Bush, despite the growing public opinion in America, announced that the war would continue till the US geo-strategic objectives are fulfilled. In April, 2007 the USA decided to send 30,000 more troops to Baghdad. Yet they were facing defeat. Britain decided to scale down its military presence in Iraq. The anti war sentiments in the US had its reflections in the congress elections, the democratic gaining majority in the congress. In the midst of all these debacles the US administration initiated negotiations with the Iraqi government to allow the US companies to exploit the huge oil reserves in Iraq. In the biggest air strike that took place in January, 2008 the US army raided Baghdad out-skirts with 40,000 pounds of bombs.
2.2.6 Iran
In a total reversal of our relationship with Iran, India decided to vote against Iran in the International Atomic Energy Agency to please the USA. It is generally perceived to be a pre-condition imposed by the USA to bring about the nuclear deal which was given the final approval by George Bush in July, 2005. India, one of the founding leaders of non-alignment movement thus deviated from the decision taken by most of the countries in NAM such as South Africa and Malaysia at the Vienna Conference. It was in fact a vote against the sovereign right of a country to develop nuclear power as the source of energy. It should not only to be construed as an vote to please George Bush but also as India's intention to be part of a broader plan of USA to promote a regime change in Iran. Iran had conveyed to India that it was disturbed by India's stand in this matter and stopped short of telling that India's explanation in this regard was nothing but preposterous. It would not be off the mark if one comes to the conclusion that the US could ensure that India gets detached from the non-aligned movement. In retaliation to the decision taken by USA and its allies Iran began industrial scale nuclear production at its Natalie Uranium Enrichment facility in April, 2007. This led to the imposition of sweeping sanction on Iran by the USA.
Having realized that the sanctions and pressures exerted on Iran have not made any impact on Irans development of its nuclear technology the Obama Adminstration of USA has decided to engage with Iran indicating that ultimately the USA had to heed to the international public opinion in the matter. USA has now decided to have direct dialogue with Iran. The talks were held on October1st in Geneva. Iran has agreed in the said talks that it is prepared to send a part of the Uranium Stock Pile for reprocessing to Russia.
Mahmoud Adhmadenijad became the President of Iran again in a decisive victory in the Iranian Presidential Polls. However, his opponents had been refusing to concede defea. Without producing any evidence, they had been insisting that the elections were rigged. There had been widespread protest in the street against the election results. This has now been waned. The former Presidents, Hashemi Rafsanjani and Ahmad Khatami have been continuing with their criticism of the June Presidential elections.
2.2.7 Afghanistan
War on terror which was said to be the reason for the occupation of Afghanistan in 2001 by the US forces. US occupation forces continued to kill civilians in Afghanistan and the puppet regime headed by Hameed Karzai has utterly failed to control the civil order. He is now mockingly called the Mayor of Kabul as his writ runs only in the city of Kabul and its peripheral areas. The Taliban resistance against the US occupation forces has in the meantime gained momentum. At the instance of US, the NATO coalition forces were raised from 9000 to 17000 in 2006. The severe oppression of the civilians by the NATO forces to maintain their supremacy has created a fertile ground for the resurgence of Taliban in Afghanistan. United Nations estimates that 678 civilians were killed in the lst 6 months of this year in Afghanistan. The US Role in Afghanistan is to be considered a criminal reactionary occupation of an alien land by brute force that must be ended. The Hameed Karzai regime is increasingly beleaguered even with the help of NATO and the US troops. The Govt. could not prevent the resurgent activities of Taliban in southern and eastern regions. US is trying to draw Indian military assistance to help the Afghan army in the wake of the massive suicide bomb attack against the Indian Embassy in Kabul which killed 140 people. Indian Government's subservience to the US must be seen as the most important cause of this massacre.
The Barrack Obama administration of USA has been compelled to raise the US strategy in Afghanistan. It has still not responded to the demand for a massive increase of American troops in Afghanistan. The Presidential election that was held in August 2009 brought about an outright victory for Hameed Karzai. The United Nations committee however had conveyed that there has been widespread fraud in the elections. Karzai has been forced to agree to run election on 7th November 2009 indicating the crumbling credibility of the Govt. in Afghanistan. This however did not take place as Abdulla withdrew his candidature.
2.2.8 NATO:
At the informal meeting of the NATO held at Sofia it was decided to hold the NATO summit meeting in the Vilnius. The former regions of USSR i.e. Ukraine and Georgia would be formally inducted as members of NATO in the summit. Russia has seen this development as an attempt on the part of US to encircle it and has taken strong objection against this move. NATO has also decided to expand its activities to Asian region with the help of S.Korea, Australia, New Zealand and Israel. Contact is being established with India to explore the possibility of inducting India into their scheme of things. Pakistan in all probabilities would be a partner in the NATO expansion scheme as could be evidenced from the fact that a Liaison Officer has already been appointed in Islamabad.
2.2.9 France
The political situation in France in the beginning of 2006 was highly fragile by the repercussion of Banlieue riots that took place in 2005 in emigrant inhabited suburban areas of Paris and other important cities. The state of emergency declared during the riots in these areas was withdrawn in February, 2006. This was followed by a huge demonstration and agitation by the School and University students against the first employment contract which had a clause for hire and fire in the trial period of the persons recruited. The agitation forced the closure of all educational institutions. The Trade Unions in the country joined the massive upsurgence of the students and unemployed people. Ultimately the Govt. was compelled to withdraw the law.
The presidential elections of France was held in April/May 2007 As no candidate obtained a majority a second round between the two leading candidates Nickolas Sarkozy and Segoleni Royal took place. Nickolas Sarkozy of UNP won the election over Segoleni Royal belonging to the Socialist party. It is stated that about 84% of the French people participated in the election.
2.2.10 Italy
Italy was under the Berlusconi regime during the major part of the Iraqi war. Italy sent the third big contingent in the Iraqi war followed only by the USA and Britain. The government was one of the most corrupt one Italy ever had. Numerous charges of corruption had been levelled against him. He was defeated in the election and Romano Prodi took over as the new Prime Minister. The Romano Prodi government had announced the withdrawal of the Italian troops from Iran. The Prodi Government however, could not continue long due to the dissention amongst the coalition partners. Ultimately it fell and Berlusconi became President once again in the election that followed.
2.2.11 USA
In our last report we indicated that there had been racial discrimination in relief operation in the aftermath of the biggest natural calamity in USA in August 2005 called Katrina and Rita. It was reported that about a million people were displaced from New Orleans and about 1200 persons died. Of the total population of New Orleans 84% was said to be African Americans and 28% live below the poverty line. The way in which the George Bush government handled this great natural calamity had racist undertones. Despite the electoral victory George Bush went down considerably in the public esteem for which the racist approach has contributed to a great extent. In the aftermath of the 9/11 World Trade centre attack George Bush had a 90% public opinion in his favour. As was stated by a commentator, Americans are increasingly becoming aware that the 'war on terror' was nothing but a war on workers at home and abroad. It became clear to millions of Americans that the looting of Iraq was the real goal of war. All that had been advanced for sending the troops to Iraq and assassination of Saddam Hussein were just scare tactics and flinch excuses for a predatory war. Most of the opponents of the war in the higher echelons of military were in fact opposing the war not because they genuinely had the human feeling against the death and destruction but because they were angry of the adventure that had gone terribly wrong and the fundamental interests of US imperialism had been threatened by the fiasco. By the beginning of 2006 George Bush had in fact become a 'dead duck' President. Naturally public opinion went against the Republican Party in its congressional election that took place during this period and the democrats ramped home with a clear majority in the congress. There is little to choose either in principle or in policy between the Democrats and the Republicans. The Democrats did little, while Bush slowly dismantled the social security net; destroyed the economy; poisoned the environment and plunged the world into war. It was mainly due to the lack of an alternative that the Democrats could come back to power. The two corporate parties are simply two sides of the reactionary coin. Time and again it has been proved that both of them in power defend the interest of the rich and the powerful and in no way safeguard the working people. Barack Obama's sweeping electoral victory should be viewed from this perspective. It was not entirely unexpected but the change when it came has no doubt kindled the hope. The meltdown on Wall Street, the gravest capitalist crisis in 75 years, must be the single contributory factor that made Obama's victory possible. Despite this change over, it is necessary for the working class to bear in mind that the loyalty of the two ruling class in America including the President elect to US imperialism is unflinching. There is elation over the out- come of the election specially amongst the African American community who had been at the receiving end of high end of racism, enforced by the terror at the hands of the police. Everywhere, both inside and beyond the borders of US people of every race and nationality had rejoiced the victory of Barack Obama for they felt that the terrible reactionary regime of Bush had finally come to an end. However the unfolding of the events in the coming days and months and its impact on the mass sufferings of the working people in the USA , the course of War in Iraq and Afghanistan will reveal of what has or has not changed as a result of this presidential election. The people of America especially the workers among them expect Barack Obama government to end its war abroad, stop lay offs, provide health care and education. Will the democratic party with a majority in the congress and an African-American as its president bail out the workers who are losing their homes and jobs or bail out the capitalist class is the question the answer to which will decide the future of the world.
2.2.12 European Parliament
The EU election held in June this year has demonstrated a disurmble shift to the right wing policies. In most of the countries perhaps with the exception of Greece, the national elections have returned right wing parties. In Britain where the election is due in 2010 it is rightly apprehended that the labour party would lose in favour of the conservatives. With the experience of the recession in most of the EU countries the reelection of the right wing parties is incomprehensive. However, it is not difficult to understand this, as most of the social democrat parties which were voted to power in Europe had been embracing neo-liberal economic policies, cutting down social welfare measures and promoting privatization. It was in fact the absence of real left wing parties that was responsible for the success of right wing. They could exploit the situations emerging from the increase in unemployment and declining social security systems in these countries.
2.2.13. South Africa.
The African National Congress retained power in the elections that was held in South Africa. ANC won about 66% votes poled. The break away group from the ANC called as Congress of the People could garner only 7.4% of the votes. There had been widespread media orchestered character assassination of Jacob Zuma, the President of ANC. They took up various issues foisted upon him inspite of his acquittal . On 27th April, 209, South Africa celebrated its 15th freedom day. Though there are many achievement to the credit of ANC during the 15 years, people do feel that a lot more remains to be done The people of South Africa expects the Government to ensure that the second decade of liberation witness the benefit flowing to the working class and poor people..
2.2.14 Japan
In the election that was held in the month of Sept 2009 the ruling liberal democratic party lost power after about two to three decades. The Democratic party of Japan has now taken over with a stable majority. It has promised to revert the privatization of the services and reduce Japans dependence on USA. The political change has been attributed to the serious recessionary trend in the Japanese economy in the post World War period.
2.2.15 England:
In the June 2005 general elections in the UK there were 646 constituencies, 13 less than in 2001. Tony Blair's Labour Party won 356 with an over all majority of 66. It was no doubt a historic victory in as much as the Labour Party came back to office for a 3rd successive term. It was for the first time that a Labour Prime Minister could make a hat-trick victory at the hustings. Tony Blair matched the record of his predecessor Margaret Thatcher. It is no wonder that a person who changed the Labour Party from a socialist leftist labour union based political party into a centrist free enterprise friendly organization could succeed Margaret Thatcher who was a proponent of privatization of public enterprises. Despite such historic victory it was in fact a defeat for the Labour Party and especially to Tony Blair. The majority of the Labour Party in the Parliament was reduced from 161 to 66 in 2005. The newspapers called Blair 'The History Man' having a double meaning in as much as he created history for the Labour Party as also to construe that he is going to be some one about to be consigned to the history despite his historic achievement. The people of UK were extremely critical of Tony Blair and the way in which he lied to the people on the question of Iraq war. Throughout the Iraq episode Tony Blair acted as a deputy to George Bush. Most of the defeat the Labour Party had to encounter at the hustings was on account of the Iraq war. George Galloway told Tony Blair that all the lies he told had come back to haunt him and the best thing the Labour Party could do was to sack him. Many Labour MPs who won and who lost were of the same opinion. Having returned the party to power Tony Blair became the Prime Minister of UK but had to resign in June, 2007 after 10 long years of Prime Ministership. Gordon Brown took over as the Prime Minister of UK. He was the apt person to be in the saddle to take British corporations into a world safe and well disposed for its business. Despite the change over the leadership, the UK has remained steadfast in its total support to America.
2.2.16 Argentina
Christina Fernandez, the left wing leader and President of Argentina became the darling statesman of the working class on 21st October, 2008 when he decided to nationalize the pension fund, when throughout the world, including our country, the trend is to privatize the same. Argentina's pension funds were managed by six private parties and the subscribers did not have a guaranteed minimum return. It is reported that each year the Argentina's workers contribute about $ 4 Billion to this fund. The economic melt down had wiped off most of the investments made from the fund. Labour leaders of the ruling Peronist Party and those of the opposition has congratulated Fernandez for the bold step in favour of the Argentinean workers.
2.2.17 Elections in Portugal & Greece
Portugal - The election that was held in Portugal's parliament on 22nd September 2009 returned socialist led by Jose Socratis to power with a lesser number. It is reported that 40% of the electorate in Portugal stayed away from the voting. The Socialists could win only 97 seats in an assembly of 230 reducing their vote share from 45% to 36.5%.
Greece - The ruling party in Greece ordered for election two years ahead of schedule for the Greece legislative assembly and lost power to the Socialist PASOK. (Panhellenic Socialist Movement)PASOK got 43.9% of the votes and 160 seats in the 303 assembly. They came back to power after 11 years.
Our Neighbours:
2.2.18 Nepal:
During the period under report Nepal witnessed a massive popular movement for the restoration of democracy. It compelled King Gyanendra to reinstate the dissolved Parliament. For continuously 19 days the people were on the street demanding the end of autocracy. Fourteen persons were reported to have died in the police firing and more than 4000 injured. The agitation had the participation of all sections of the society. It was the agreement between the seven party alliance with Maoists that could make the agitation so powerful and strong enough to ensure the ultimate end of monarchy. An interim government could then be installed with the participation of Maoists. Elections to the constituent assembly was held and a Govt. has been formed with the Maoists leader Prachanda as the Prime Minister. Prime Minister Shri Prachanda in his first visit to India in Sept. 2008 said in a joint statement that the Indo-Nepal treaty needs review. The conflict between Shri Prachanda, the Prime Minister and the Chief of the Armed Forces Gen. Rookmangud Katawal ultimately resulted in the resignation of Prachanda as Prime Minister of Nepal. General Rookmangud Katawal as protégé of King Gyanendra had been resisting every attempt of Prachanda's Government to integrate the Maoists who had laid down their arms into the armed forces. It was in clear violation of the 2006 agreement which had been signed under Indian supervision. As per the agreement 23000 rebel soldiers were to be recruited which was stubbornly resisted by the General. Prachanda accused India for backing the extra constitutional act of President Rambaran Yadav's to reinstate the army chief who had been discharged earlier.
2.2.19 Pakistan :
The involvement of Pakistan in the serial bomb blast in the suburban train Mumbai causing the death of 186 persons and injuring several others strained the relationship between India and Pakistan. India demanded Pakistan to take effective steps to check the terrorist activities from within its territory. . At the NAM summit at Hawana the two countries decided to continue the dialogue at the foreign Secretary level. But the relations between the two countries came to worse due to the clear involvement of Pakistan in the November, 26, 2008 Mumbai attack. In spite of providing sufficient and clinching evidence, Pakistan has not taken any serious step to contain the terrorists operating from its land.
Pakistan had its share of internal political instability. On return from exile for participating in the democratic process of the country, the former Prime Minister Ms. Benazir Bhutto faced threat to life. Ultimately within days she succumbed to the threat as she was assassinated in a public meeting. Later in the keenly contested election the Pakistan Peoples Party and the Muslim League almost shared the honours with no party obtaining majority. It led to the formation of a coalition Govt. headed by Yusuf Ghilani of PPP. The Pakistan Muslim league later withdrew from the Govt. as their demand to reinstate the dismissed Chief Justice and Judges was not met. However, they joined together to impeach the president which led Mr. Musharraf to quit. In the subsequent election for the President, Mr. Asif Ali Zardari was elected. The insurgency of the Pro-Taliban forces in the North West Frontiers is the biggest problem faced by Pakistan
2.2.20 Sri Lanka:
By April, 2006 the peace process which was initiated by the international community to find a lasting peace in the island country of Sri Lanka between the LTTE and the government came to a halt. LTTE pulled out of the discussions alleging that the government had not disarmed the para military forces. In the subsequent attacks and counter attacks hundreds of people were killed. The ceasefire monitors have condemned the LTTE for serious violations and the European Union has decided to treat the LTTE as a banned terrorist outfit. The government of Sri Lanka was compelled to tread the military path on the pressure exerted by the Sinhala extremist parties on whose support the coalition government came to power. The military action pursued by the Sri Lankan Government resulted in heavy loss of life. The Sri Lankan donors group, viz., USA, EU, Japan and Norway called for an immediate ceasefire which was rejected by the Sri Lankan Government. By the end of 2006 the government forces could register success in capturing all regions in the Eastern Sri Lanka. Emboldened by the success in the Eastern region the government refused to accede to any proposal for autonomy in the north eastern region of Sri Lanka even under the constitutional frame work. It hardened its stand and indicated that it could go only for the devolution of more powers at the district level on par with other areas of Sri Lanka. In June 2009 the war in Sri Lanka was over with the death of LTTE Velupillai Prabhakaran. The Sri Lankan governments writ now runs throughout the island nation after about 30 years. The LTTE is fully decimated as a military force. While the majority community, the Sinhalese, celebrated the military victory, the Tamils and the minority sections in Sri Lanka has been in a state of mourning. Sri Lankan President Rajapaksha has rightly claimed successful completion of the war. The victory should now pave way for an equally important ending of the ethnic conflict between the two major communities in Sri Lanka, the Sinhalese and the Tamils and a political solution for peaceful co-existence.
2.2.21 Thailand
During the period under report Thailand which had a democratically elected government was dethroned by the military. No doubt the Thaksin Shinawatra government which won the election in 2001 and 2005 was notoriously corrupt and had indulged in 'vote buying' to come to power. The powerful movement organized by the urban middle class to oust the corrupt government did help the military. It is worthwhile to mention that the US in whose backing Thailand had survived as a democracy has only expressed mild disapproval of the military action.
2.2.22 Bangladesh
Begum Khalida Zia's government had become totally discredited by the time it was to end its tenure in June, 2008. Her regime had provided impetus for the resurgence of all fundamentalist forces. The extremist group had demanded for replacing the current constitutional laws with the Islamic Shariat and had unleashed a severe attack on the judiciary. On the eve of the declaration of election, the Military took over the reins of regime on the specious ground of holding a free and fair election. The Military Government charged all the political parties of corruption and swindling the national wealth.. For about 2 years Bangladesh was under the military rule. Elections were constantly postponed for one reason or the other. Ultimately due to the pressure built up by the people against the military rule the elections were held in December, 2008. Sheikh Hasina of the Awami League won the election with a massive majority. 236 seats in the 299 member parliament were won by the Awami league. The bilateral relationship with India and Bangladesh is expected to improve when Sheik Hasina formally takes over as President.
2.2.23 China
China has made spectacular economic development. Its GDP growth is @ 11%. It has extended its area of influence in most of the countries in Asia, Africa and Latin America. Side by side with this superb growth it is also reported that inequalities income-wise, region-wise and between urban and rural areas has also been growing. This fact has been acknowledged by the Chinese Communist Party in its 17th Congress held in October, 2007. Addressing this problem it has been stated that China would increase transfer payments, intensify the income taxation, break business monopolies, create equal opportunities and overall income distribution. Its new policy towards rural development includes increasing the farm income, providing free education and subsidized health care. It guarantees employment protection and strengthen social security for the workers. China's president Hu Jintao visited India recently Agreements for mutual co-operation was reached in the field of agriculture, tourism, science and technology, energy, space and nuclear energy. It was also decided that the trade between the two countries should be targeted for 40 Billion US$ by 2010.
China recently celebrated its 60th anniversary of its revolution in a very impressive manner. It focused the world attention over the phenomenal growth of China as a global power. It is expected that by 2020 china would surpass the USA. In the context of it registering an 8% GDP growth in 2009 despite the global economic recession the said claim cannot be stated to be exaggerated.
National Situation :
3. We are meeting in this conference after three years. In the report submitted to the XXII National Council Meeting of Confederation of Central Government Employees & Workers held in Thiruvananthapuram in September 2006 we have noted as to how the UPA government itself drifted away from the Common Minimum Programme which had been adopted as the directive principles of governance. It had continued with the neo-liberal policies and had gone ahead unmindful of the opposition of the supporting parties, especially the left. Since Parliamentary sanction was required it could not implement the reforms concerning pension fund privatization, banking sector regulations and induction of FDI in insurance to the extent desired. In the name of widening the tax base the Service Tax was extended to many areas of concern to the common man while giving exemptions and concessions to the direct tax payers. Some of the important developments both at the economic and political fronts during the period under report are briefly touched upon hereunder:
3.1.Economic scenario:
3.1.1. Budgets:
The UPA Govt's policies were mostly pushed through the instrument of budgets presented every year to the Parliament. The report of Joint CEO Forum provided the necessary background in the budget making process. The inputs from the Planning Commission were also factored in the budget. The budgets presented by the government did not take any serious steps to tackle the problem of unemployment and the farmers in distress. Despite the enactment of the Rural Employment Guarantee Scheme the budget allocation of funds for the scheme had not been sufficient to cover the stipulated number of districts in the country. There had been no noticeable increase in the outlay on health. While the coverage of indirect taxes was enlarged there had been no attempt to raise tax revenue from the rich industrialists. The budget ought to have been the instrument to meet the commitments made in the CMP but no such attempt was made by the Government.
3.1.2.Price rise:
The phenomenal increase in the prices of petroleum products triggered an unprecedented inflation in the economy during the period under report. The double digit inflation remained for quite longer time making the prices of all essential commodities to rise. Rice, wheat, dhal, vegetable, edible oil, sugar all became costlier. The refusal on the part of the Govt. to ban the future trading on food commodities added fuel to the fire. There were 90 commodities on which future trading was permitted. The big traders and corporate houses could garner stock and push up the prices for speculative profits. The faulty construction of consumer price index helped the Govt. to claim that the prices were not increasing alarmingly. The Govt. allowed the entry of big private players into the grain trade which resulted in the inability of Food Corporation of India to procure the required quantity of food articles. Wheat stocks therefore fell below 7 million tones. The inflation brought about an intolerable situation for the poor people. The Rural Employment Guarantee Scheme which was brought about at the insistence of the left parties helped the poor people especially in the rural areas to combat the price rise to some extent. But the scheme suffered for want of budgetary allocation. Even after the fall in the petroleum prices in the international market, the Govt. did not bring about a reduction in the price of Diesel and Petrol to allow the petroleum companies to amass profit. Global financial crisis further reduced the purchasing power of the common people which consequently resulted in a sharp decline of the demand.
3.1.3 Appreciation of Rupee
For a few months during this period, Indian Rupee appreciated its value against the US $. Within a span of 12 months value of US $ dropped from Rs.48/- to Rs.39/-. The appreciation impacted on the import positively and negatively on the exports. Most of the payment of the export and import is made through US $. The government announced Rs.1,400 crores package to mitigate the loss suffered by the Indian exporters. Most of these exporters we should understand had made huge profit when the rupee had depreciated. The exchange value went up from Rs. 25/- per $ to Rs.43/- at one point of time. The bail out package was therefore nothing but nationalization of losses and privatization of profit. This decision also brought to the fore the proclivity of the government to the pressure groups.
3.1.4.Capital Account Convertibility (CAC)
Contrary to what is agreed upon in the Common Minimum Programme (CMP) of reducing the vulnerability of the financial system to the flow of foreign capital, the government had proposed introduction of full capital convertibility. The Tarapore committee set up by the RBI recommended for such a course subjected to certain condition being fulfilled such as
a) Gross fiscal deficit to GDP ratio to be brought down to 3.5%.
b) Average inflation rate within 3 to 5%.
c) Debt servicing ration to be of 20%.
None of these conditions were fulfilled. Still the proposal had been mooted time and again by the Prime Minister and the Finance Minister. Many developing countries introduced CAC in 1980s to attract foreign direct investment. After the disastrous experience of some East Asian countries caution should have been the pass word.
Basically CAC implies freedom to convert local currency into foreign currency & vice versa without any governmental restriction. It allows freedom to make investment in foreign equity or real estate in foreign land. It also permits conversion of local financial assets at market determined rate of exchange. The principal focus of CAC would be on trading of assets both financial and real. In other words it is permission to capital investment by foreign national without any restriction in our country. It is surprising that the government proposes the CAC at a time when they themselves admit that Indian low level of domestic savings is the biggest constraint for domestic investment. Except the rich who can take advantage of liberal capital account regime to park their funds abroad and earn a lot of money, it does not serve any other material purpose.
3.1.5 Special economic Zone (SEZ)
SEZ is a geographical region that has economic laws that are more liberal than the normal laws. It is conceived as means for increasing production for the purpose of export at a very competitive price. In fact it covers the earlier versions of Free Trade Zone, Export Processing Zone, Free Zone, Industrial Estate, Free Ports etc. Besides the liberal economic laws the entrepreneur of SEZ gets a variety of tax concessions. One of the earliest and famous SEZ was in China. The Govt. of India has given approval for a number of SEZs. According to World Bank estimate in 2007 there would be about 3000 projects of these types taking place in 120 countries. More than 500 SEZ have been proposed in India of which 220 have already been created, raising concern even for the World Bank about its sustainability.
In Indian context SEZs are built by mostly private entrepreneurs with large scale infrastructure support from the government and huge amount of tax concession. The SEZ have come to face opposition from various quarters mainly due to the reason that it displaces large number of people who depend upon agriculture for their livelihood. The displaced persons are not offered with any alternative livelihood and are given meager compensation for land acquisition whereas the promoters would get the land cheaply and can make a fortune out of real estate development alone. As per the stipulation made by the Govt. of India the promoters are required to utilize only twenty five percent of the land for industry and rest seventy five percent for other commercial purposes. Coupled with the large amount of tax concession SEZs would be a strain on government's revenue resources. The government has to be compelled to amend the Rules on land utility as also withdraw some of the tax concession offered to the promoters for setting up the SEZ.
3.1.6 Pension Reforms:
The stiff opposition of the left parties ensured that the PFRDA Bill could not be enacted. As was indicated in our last report, the Govt.'s attempt was to divert the pension fund to the share market. Even though no enactment was made in the Parliament, the Govt. introduced new Pension Scheme for the employees who were recruited after 1.1.2004. 10% of their salary is being deducted towards the fund. The Govt. contributes equivalent amount. The funds so collected is handed over to an investment operator. The employees have the option to choose from different investment portfolio.
The Govt. decision has brought about two classes of employees with the same salary structure, one having the statutory minimum defined pension benefits without any contribution and the other having only an annuity as pension on the basis of the contribution made by him. The committee that was set up by the Pay Commission to go into the matter concerning the financial outflow of the Govt. has opined that the new scheme would not bring about any decrease in the outflow. One of the major reasons cited by the Govt. to bring in the PFRDA Bill was the increase in the financial outflow. In the light of the report of the committee set up by the Central Pay Commission there is no reason as to why this bill should be sustained. It is now clear that the very intention of the Govt. was only to divert the pension fund collected from the employees to the share market operation.
The Association of National Exchanges of India urged the Govt. to set up a sovereign fund to support the equity of well managed listed companies. They wanted the Govt. to channelise a part of the Provident and Pension Fund into the stock market. Heeding to this request the Govt. decided to divert 5% of the accumulated fund so collected from the employees towards pension to be parked in the stock market.
In 2008, the Govt. also took the decision to divert the Provident Fund accumulation in the Employees Provident Account to the share market. It is therefore, clear that pension reform was conceived as an idea to pump the savings of the people to the share market operation.
The Central and State Govt. employees joined together to oppose this move as also the enactment of PFRDA Bill in the Parliament. One day strike was organized by the joint platform of Central and State Govt. employees on 30.10.2007 demanding the withdrawal of PFRDA Bill and restoring the statutory defined minimum pension benefit.
3.1.7 Disinvestment of PSUs
The PSUs which came into existence in 1950s were given a special role in India's planned economy. At the end of the seventh Plan in 1990 there were 244 Public Sector enterprises with an investment of Rs.99,329/- Crores. Although the policy of disinvestment was commenced in 1991, at the end of 8th Plan in 1997, the investment in Public Sector Undertakings was raised to Rs.2,13,610 Crores. In 2000-01, the total investment stood at Rs.2,74,114 Crores. It is an acknowledged fact that the Public Sector Enterprises had made significant contribution to industrial production, especially in Lignite, Coal, Crude Oil, Zink, Aluminium and finished steel. It is also a fact that return on investment in PSUs taken together remained low, post-tax profitability being only 5%. Given to the fact that they are not governed by profit maximizing consideration, the low profitability cannot be faulted. However, as was done by Smt. Margaret Thatcher in UK in 1980s, the east European countries after the collapse of Soviet Regime; later by many Latin American countries and Asian countries including China the disinvestment of the PSUs on the specious plea of profitability was resorted to by the successive governments in our country. In the post-1990 era, Modern Food Industry, BALCO, BSNL, Centaur Hotel etc. were some of the PSUs, though profit making, went in for disinvestment.
Contrary to what had been stipulated in the Common Minimum Programme, the Govt. of India decided in June, 2006 that 10% of NALCO and Neyveli Lignite Corporation should be disinvested. The NALCO employees went on one day strike and the Neyveli employees went on indefinite strike. In the face of stiff resistance from the workers, the DMK finally threatened that it would withdraw its Ministers from the Govt. if the disinvestment is not called off. Left with no alternative, the Prime Minister put the disinvestment on hold.
The 2nd UPA Government which came to power sans the support of the Left parties after the General Election in 2009 has already drawn the roadmap. The Oil India and NHPC were the two public sector undertakings chosen by the Government for disinvestment. It is to be followed by NTPC and Sutlej Jal Vidyut Limited. Rs. 2500 crores is the target fixed for the current fiscal year by disinvesting the PSU shares.
3.1.8.The National Rural Employment Guarantee Scheme
The National Rural Employment Guarantee Act was passed by the Indian Parliament on 25th August, 2005. The enactment was to provide legal guarantee for 100 days of employment in every financial year to adult members of any rural house hold willing to do public work related unskilled jobs. They are to be provided with the statutory minimum wage prescribed. The Act was introduced as a measure to help the rural people living below the poverty line. It is also stipulated that one-third of the persons employed under this scheme must be women. The Government of India will bear the cost of the wages fully, ¾ of the material and other ancillary costs whereas the concerned State Governments has to bear the cost towards unemployment allowance and the rest of the material cost. It is provided in the enactment that within 15 days of receipt of the application the concerned person is to be provided with the employment or he should be provided with the unemployment allowance. The scheme was introduced in the Parliament in implementation of the common minimum programme. The left parties had worked hard for implementation of this particular scheme as the Government of India and especially the Finance Ministry was reluctant to go ahead with the scheme due to financial constraints. It was originally extended to 200 districts out of 593 in the country. Government decided to extend the scheme to further 130 districts in the financial year 2007-08. It is expected that the scheme will have the coverage of the whole country during 2008-09. This is one of the laudable schemes introduced by the UPA government during the period under report. In the year 2006-07 the amount allocated under this scheme was Rs.11,300/- crores. As per the governmental report 2.5 crores house hold applied for registration of which job cards have been issued to 1.7 crores households. Of the 70,99,839 persons who demanded employment 59,94,248 have been provided work. It is also worthwhile to mention that NREGS is the first programme which have been implemented with full IT support. While Tata Consultancy Services provided the software in the state of Andhra Pradesh, the NIC, a Government of India undertaking, developed solutions for other states.
3.1.9 Retail Trade Entry of Organized Sector and FDIs
There had been wide spread opposition to the entry of organized sector and induction of FDIs in retail trade. The opposition is mainly centered on the fact that the entry of such global retail traders like Wall Mart and the Indian organized sector like Reliance might kill local shops and millions of jobs. It was also genuinely feared that once monopoly position achieved the TNCs and organized sector players would raise the prices for the consumers and reduce it in the case of the suppliers. The proponents of FDI entry into retail trade argues that the economy would be benefited as it would trigger higher exports. They had pointed out that the global retailers together buy about $ 60 Billion each year from China for exports whereas India presently contributes only $ 1 billion. They also argue that the supply chain and infrastructure which the organized sector develops would yield substantial cost reduction benefiting the consumers. In contrast it is stated that lakhs of people might lose employment in the country because of the fact that presently 7% of the total employment in India is through the local kiranas. The Commerce Minister has floated the proposal for more FDIs in retail sector like electrical and consumer electronic goods. The Reliance has proposed an investment of Rs. 30,000 crores in retail trade. Whatever be the pros and cons of this it is certain that the job loss would be tremendous if organized sector is permitted to enter into the retail trade.
3.1.10 Impact of Global Financial Crisis on Indian Economy
In the international section of this report we have sketched the cause and character of the global financial crisis, its impact on the developing countries, especially those who had adopted the globalization process of economic development. The report of the OECD has indicated that the GDP of most of the European countries has declined in the 3rd quarter of 2008. It was 3.1% in 2006, 2.6% in 2007 and 1.4% in 2008. The unemployment rate is reported to have raised from 5.6% in 2007 to 5.9% in 2008 and is estimated to increase @ 6.9% in 2009. Speculative trading business in capitalist countries had reached alarming proportions. It is reported that in 2007 the volume of speculative trade in commodities was 5 times larger than the total trade in stock market and 10 times bigger than the world GDP. The main items of speculative trading have been food grains and food products, fertilizers and oil. The phenomenal increase of oil price from $ 40 per barrel to $ 147 per barrel should be attributed to this speculative trading in oil with the objective of amassing profit without capital investments.
The Indian Finance Minister even after the stock market crash, a direct consequence of the global financial crisis has been assertive that the fundamentals of Indian economy are strong and India would continue to maintain the second largest growing economy in the world. He has also asserted that the Indian economy was insulated from the world financial melt down. These statements were in fact misleading. As could be seen from the fact that the industrial production in August, 2008 was only 1.3% compared to almost 10% in August last year and had gone into minus figure in the latter part of 2008. Had there been no impact on Indian economy it is pertinent to ask as to why the Government of India decided to take steps in the nature of a bail out. On instructions from the government, the RBI cut the cash reserve ratio and the statutory liquidity ratio. These two measures together did inject about one lakh crore rupees in the economy to meet the liquidity crisis. Contrary to the assertion of the Finance Minister the former Governor of RBI wrote in a newspaper article that 'the US financial crisis has had its reverberations on both developed and developing world. It is not possible to insulate Indian economy completely from what is happening in the financial systems of the world'.
No doubt the global financial crisis has not impacted the Indian economy as gravely as it has affected many of the South Asian countries. This was only due to the fact that throughout the UPA rule the left parties through their concerted opposition did not allow the government to have the banking regulation bill passed in Parliament; increase FDI in insurance sector and the pension fund privatization reforms. In all those spheres of economic activities where Parliament legislation was required the UPA government could not enlist the support of the left parties. Had the UPA been allowed its way the Indian economy would have been as much in peril as is being witnessed by the European and American economies. It is pertinent to mention that the pension fund in the US have lost over $ 2 trillion due to this crisis and those who have retired face an extremely bleak future.
A survey conducted by the Federation of Indian Chamber of Commerce and Industry has brought out the fact that the global economic slow down have already affected the textile, leather and metal industries. These industries have already planned to effect a cut of 10 to 50% in their production schedule between November 2008 to March 2009. Leather exports have declined by 62% and textile by 10%. The global recession has already affected the ship yard industry 15% of the existing orders are likely to be cancelled involving Rs.3750 crores. Domestic air traffic has already declined by 21%. The Advisor to the Chairman of the Indian Prime Minister's Economic Advisory Council S. Tendulkar has said that the situation was much graver than expected.
The government offered 'bail out' packages for various industries who have amassed huge wealth in this period of globalization. They have enjoyed huge tax concession during the last 2 years, while the government was insisting upon withdrawing the subsidy on food items which have otherwise helped the poor people of the country. All that had been done and continued to be done prior to the crisis and after the crisis is only to protect the interest of corporate tycoons. It is therefore no wonder that among the 10 richest persons in the world 4 are from India while only 2 are from Japan which has a per capita income in 50 times more than India. More than 5 lakhs workers lost their jobs in 3 months due to retrenchment and closure of export oriented industrial units. Tirupur and Surat have accounted for the largest massacre of jobs. There is no bail out package for the people who lost the job. It is in this context we should view the scandalous affairs in Satyam Computer Services. The very fact that the reputed CA firm who had received about Rs. 5 crores as fees from Satyam Computers for the current year had not even checked up the actual bank balance tells the sordid story of corporate manipulations in collaboration with the so called watch dogs. One of the proposals which the government placed for the consideration of the Parliament in 2006-07 was to remove the authority of the CAG in auditing the giant public sector undertakings on the plea of level playing ground. It is the relaxation of the regulatory mechanism that has emboldened the corporate giants indulge in fraudulent activities.
4. Political
4.1.1 Assembly Election - 2006
During the year 2006 State Assembly election were held in Assam, Kerala, Tamil Nadu, West Bengal and Pondichery.
Of the 140 seats in Kerala Assembly the LDF secured 98. The CPI(M) alone had 61 seats and 4 seats were won by the Independent supported by it. This was the highest number of seats won by the CPI(M) since 1965. The UDF which was in Government at the time of election could secure only 42 seats and lost power.
In Tamil Nadu the DPA led by DMK won 162 seats of the total 234 assembly seats. At the husting the AIADMK which was in power could manage to get only 71 seats for its alliance. The DMK could not secure a simple majority on its own. It formed the government with the outside support of its alliance partners.
Of the 30 seats legislative assembly of Pondichery the DPA led by DMK won 21 seats and formed the government. The AIADMK alliance could get only 6 seats.
For the 7th consecutive term the Left Front was returned to power in West Bengal with a ¾ majority in the assembly. Of the 294 legislative assembly seats in West Bengal the ruling Left Front retained 235. It was a superb victory for the ruling Left Front in West Bengal. The chief opposition, the NDA composing of mainly the Trinamool Congress could bag only 30 seats while the Congress could independently get 21 seats.
Assam assembly has 126 seats for which the elections was held in two phases on 3rd April, 2006 and 10th April, 2006. The Congress party which had got a majority in the last election by winning 72 seats got only 53 seats in the election. Since it did not get a majority in the assembly it had to tie up with Bodoland Peoples Progressive Front to form the government. The Assam United Democratic Front and BJP got 10 seats each.
While most of the ruling parties lost the assembly election, i.e., Congress in Assam, AIADMK alliance in Pondicherry and Tami Nadu, UDF led by the Indian National Congress in Kerala, the LDF in West Bengal recorded a magnificent victory at the hustings for the 7th time in a row. In the electoral history of the country this was an unprecedented event. The election results were definitely a pointer to the growing differences among the mass of the people in the country towards those who pursue neo-liberal economic policies.
4.1.2. Assembly Elections – 2007
In 2007 Punjab, Uttarakhand, Manipur, Uttar Pradesh, Goa, Himachal Pradesh and Gujarat were the states which went to polls.
The Congress was the ruling party in Punjab. Of the 116 seats in Punjab the Congress won only 44 seats. The BJP-SAD alliance bagged 68 seats and formed a coalition government. BJP put up an exceptionally impressive performance bagging 19 of the 26 seats it contested. However, there was no significant difference in the vote share of the SAD-BJP alliance implying that though the Congress party lost in power it has not lost its mass base.
Of the 70 member legislative assembly of Uttarakhand Congress which was the ruling party could manage only 21 seats. BJP won 34 seats and formed the government.
Manipur was a state ruled by the Congress party in alliance with the NCP. In the election for the 60 member assembly it could improve its position with 20 seats. Congress party's victory was remarkable as prior to the election there was wide spread agitations in Manipur against the Armed Forces Special Powers Act, 1958. There had been accusation of wide spread atrocities against civilians by the armed forces under the garb of the above act. Indian National Congress is the major partner in the UPA coalition. Having registered such a spectacular economic growth the Congress party ought to have been elected to power in all these states. Barring Manipur which is a very small state the fact was the Congress lost power. It only confirms that the benefit of economic growth had gone only to the upper crest of the population. The lower segments of the population get pauperised more and more due to the neo-liberal economic policies.
The next round of elections in 2007 was in Gujarat, Himachal Pradesh, Uttar Pradesh and Goa. Of the 182 assembly constituencies BJP retained 117 in Gujarat, Congress the opposition party could manage to get only 60 seats. Narendra Modi became again the Chief Minister of Gujarat. The election has proved unequivocally that the BJP base in Gujarat and Modi's influence have remained in tact.
The Congress was the ruling party in Himachal Pradesh. In the election for which the result was announced in December, 2007 the BJP won 41 seats of the 61 assembly constituencies. Congress came second with 28 seats. The Congress party was trounced in the election.
In the Goa election which took place in June 2007 the Congress could win with the support of the NCP. The alliance got 19 seats. It managed to get a majority in the assembly with the help of other parties in Goa. Goa witnessed a change of regime after this election.
The biggest assembly election which took place in 2007 was in Uttar Pradesh which has got 402 seats in its assembly. The Samajwadi party and Congress were the ruling coalition partners at the time of election. Of the 402 seats SP could win 97 and the Congress 22. BJP also reduced its number of seats to 51 in the assembly. BSP won handsomely with 206 seats getting single party majority. Except in Gujarat in all other states the ruling party had lost the election.
4.1.3.Assembly Elections 2008
Several states of the country went to polls in 2008. Tripura, Meghalaya, Nagaland, Karnataka, Chattisgarh, Madhya Pradesh, Delhi, Mizoram, Rajasthan and Jammu Kashmir.
The election in Tripura was held in March, 2008. Of the 60 seats assembly the CPI(M) returned to power with 46 seats majority. The Indian National Congress could get only 10 seats. It was the third consecutive victory for the CPI(M) in the Tripura Assembly. Manik Sarkar was re-elected as the Chief Minister of the state.
25 seats were won by Indian National Congress in the Meghalaya Assembly elections held in March, 2008 and thus became the single largest party in the assembly. Congress was invited to form the government as they could bring forth the majority support.
Of the 60 seats in Nagaland assembly 26 went to NPF in the election that was held in March, 2008. NPF formed the government with the help of BJP. Indian National Congress became the second largest party with 24 seats.
Securing 110 seats in the 240 member assembly in Karnataka BJP came to power for the first time in South India in the assembly election held in May, 2008. With the support of the independents and others it formed the government. However, in the bi-election that was held in December, 2008 the BJP secured an absolute majority in the assembly.
In the election that was held in December, 2008 BJP retained power both at Madhya Pradesh and Chattisgarh. In Madhya Pradesh of the 230 seats BJP retained 142 candidates. Shri Sivaraj Singh Chowhan was elected as Chief Minister.
For the consecutive 3rd term in succession the Indian National Congress under the leadership of Sheela Dixit came to power in Delhi winning 42 out of the 69 seats contested. BJP which was the main opposition party which aspired to come back to power could get only 23 members in the assembly.
Indian National Congress came to power in Mizoram in December, 2008 winning 32 of 40 seats in Mizoram assembly.
The ruling party BJP was defeated in Rajasthan as it could not get a majority in the 200 member assembly. Indian National Congress could get 96 of their candidates elected whereas BJP could get only 79 seats. With the help of independents Shri Ashok Ghlot was sworn in as the Chief Minister of Rajasthan.
In five phased election process Jammu Kashmir went to polls in December, 2008. Despite the call for boycott of election given by the divisive forces there had been a very good percentage of turn out to participate in the election process. In the 87 member assembly of Jammu Kashmir the National Conference emerged as the single largest party. There was no clear verdict for any single party or coalition. With the support of Indian National Congress Shri Omer Abdulla was sworn in as the Chief Minister of Jammu Kashmir.
As was noticed in the earlier elections in 2006 and 2007 the elections in 2008 returned the same verdict from the people that they are opposed to the new economic policy ushered in 1991 by the Congress and pursued with vigour by the NDA government thereafter. The 2008 election results have shown, however, that the people have recognised the good governance and voted that party to power.
4.1.3.Assembly Elections 2009
On October 13, 2009, Maharashtra, Haryana and Arunachal Pradesh went in for elections. In Maharashtra the Congress NCP alliance could come back to power. In the fray was a third front in the name of RLDF in which the Republican Party of India, the Left parties , JD(S), etc. participated. The Congress NCP alliance won 114 seats and retained majority in the Maharashtra Assembly. The newly formed MNS, a split away group from the Shiv Sena won 13 seats.
In Haryana, against all prediction the Chautala led Indian National Lok Dal could win 32 seats. Congress could not win a simple majority even though they formed a Government in Haryana later with the support of independents.
In Arunachal Pradesh, Congress retained power with an easy victory.
4.2.Indo-US strategic Alliance and the Nuclear Deal:
The Indo-US strategic tie up which was formalised during the visit of Prime Minister in Washington in July, 2005 and during the visit of George Bush in India during March, 2006 was in fact the continuation of the policy pursued by the former NDA government to tilt India's relationship in favour of America. It was in total violation of what had been agreed upon as the directive principles of UPA government called the National Common Minimum Programme. The Indian government was eager to get the nuclear cooperation agreement and was willing to abide by any conditionality imposed by the USA. India's stand on Iran nuclear project and its vote in favour of USA in IAEA meeting is indicative of how much and how far the Indian Government was prepared to bend before the USA. The Indo-US nuclear cooperation agreement which has now been formalised despite the opposition of the major political parties in the country should be viewed in this context. In order to get the US approval the Government of India had to agree for many of the demands of the USA. The maritime cooperation frame work, the Indo-US military exercise were all part of the subjugation of India's foreign policy to American interest and above all to make India to be the strategic partner of USA in Asia. At the insistence of USA India has almost abandoned the lucrative Iran-Pakistan- India Gas Pipe line Scheme. Had this venture been operationalised it would have served India's energy needs.
Despite all these, Bush administration still insisted new terms and conditions for arriving at an agreement on nuclear deal. There had been a demand on the part of the USA on the full nuclear cycle and for an India specific additional protocol with the IAEA had been agreed upon earlier. When it was discussed in the Congress and Senate of USA various provisions were added to the legislation required to operationalise the understanding. Most of the political parties in the country especially the left parties pointed out that agreeing to those conditions would only compromise India's nuclear programme and would not be in the interest of the country. It was also pointed out that the policy commitment for a full fledged nuclear fuel supply would be totally jeopardised if the congressional amendments were incorporated. It was also made known to the government not only by the left parties but many nuclear scientists that India's nuclear programme with such terms and conditions would harm independent development of India's nuclear technology besides compromising India's independent foreign policy. It was rightly demanded that the issue emanating from the Hyde Act should be subjected to a full fledged discussion in the Parliament and the Prime Minister should be duty bound to go ahead in the matter only on the basis of the sense of Parliament. Initially, Manmohan Singh government did not agree for a discussion in the Parliament. The growing public opinion compelled the government to agree for a discussion and reply by the Prime Minister. This was done on 17th August, 2006. It was decided that the Prime Minster's reply should form the basis for further discussions with the USA in the matter and the agreement should be in consonance with what the Prime Minister stated in the Parliament. The USA ultimately passed its legislation. However, the provisions of US law were contrary to the assertions made by the Prime Minister on 17th August in the Parliament. Instead of an India specific protocol in IAEA the US law had stipulated only for a modified additional protocol meant for non nuclear weapon countries. It has been agreed that the US would help to build up strategic fuel reserve for running the reactors for its life time. This was not honoured by the US. Besides the law had harped up the necessity of India's foreign policy being congruent to that of the US. In addition, reference had been made to India's cooperation and support to the US sanctions being imposed on Iran. The majority members in Indian Parliament other than the UPA partners in government were against proceeding with the bilateral agreement on account of the condition set out by the USA. When more details of the agreement were known it became clear that the USA had insisted upon not to have a nuclear test by India in future as one of the most important stipulation on the basis of which nuclear cooperation agreement could be finalised. It had insisted the return of all nuclear equipments and fuel supply in case India decides to have a nuclear test again. It became clear for all concerned that only the Hyde Act would prevail and would set the parameters for future Presidents of USA and Congress to act upon. The Manmohan Singh government decided to go ahead with the nuclear deal despite the fact that his assurance in Parliament that India's civilian nuclear facility could be allowed to IAEA safeguards only if the reciprocal condition of uninterrupted fuel supply. The nuclear supplier group met in September, 2008 and decided upon the waiver for nuclear commerce with India. The waiver was neither clean nor unconditional as claimed by the government. In fact it had made the voluntary moratorium on testing into a multilateral agreement. Restrictions had been imposed on transfer of technology on enrichment and reprocessing. The waiver terms were designed to make India adhere to the Hyde Act conditions. In order to sign this agreement Manmohan Singh decided to take fresh partners to win the trust vote through dubious methods.
It is to be noted that the deal has opened up vast Indian market for the US companies to set up nuclear plants. The dying nuclear industry in US has no order for the last 30 years. The nuclear industry in USA is expected to have an order of Rs.2,80,000/- crores for the 10000 MW nuclear power plants promised by India's Foreign Minister in a letter written to the US Under Secretary William Burns. This agreement would affect India's vital interest in the filed of energy, defence, economy and even internal political issues. It was in this context the left parties had to withdraw the support to Dr. Manmohan Singh government as operationalisation of the agreement would amount to mortgaging India's sovereignty to American imperialism. One should know that a super power has no allies but only agents.
In continuation of its decision to entering into a deal with the United States of America on nuclear energy the UPA-II has finalised the nuclear liability bill to place a ceiling on the amount to be paid in case of an accident in a nuclear facility. It is said to be in consonance with the Vienna Convention on civil liability for nuclear damage. The ceiling limit is stated to be Rs.2000 crores which would be a paltry sum given to the enormous losses in case of a nuclear accident.
4.3 Trust Vote
The left parties withdrew the support of the Government when Manmohan Singh decided to go ahead with the nuclear deal. A special session of the Lok Sabha was convened by the government on 21st and 22nd July 2008. Having marshalled the support of the Samajwadi party in the most opportunistic manner and resorting to use of money power and intimidation tactics to get in other allies the government won the trust vote. The government could muster 19 votes from the opposition. Of these 16 were from the NDA group (8 from BJP) and one each from the JDS, TDP and Nagaland Peoples Front. In its bid to obtain a majority vote Manmohan Singh government sullied its image. The production of currency notes in the Lok Sabha by 3 BJP MPs led to wide spread criticism in the country.
4.4 Terrorist Attack
During the period under report there had been several attacks by the terrorist outfits killing innocent citizens of the country. In 2006, on 1st June it was at the RSS headquarters at Nagpur, on July 11 the serial blast in Mumbai took place in which 182 persons were killed and thousands injured. On 8th September, 2006 in the bomb blast at Malegaon town in Maharashtra led to the death of 37 persons. On 5th January, 2007, 48 Bihari persons were killed in an ULFA attack in Assam. On 18th May the blast that took place in Hyderabad killed 9 persons and injured 50 others. Again on 10th August the militant outfit killed 16 Hindi speaking people in Assam. On 11th October in the blast that occurred in Ajmer in Rajasthan 2 persons were killed and 17 others were injured. On 23rd November, 2008 in a blast that took place in the court premises at Allahabad, Faizabad and Lucknow 13 persons were killed. On 13th December, 2007 in the train blast that took place in Upper Assam 5 passengers were killed. On 1st January, 2008, 8 CRPF personnel were killed at Rampur in Uttar Pradesh. In the naxalite attack in Orissa 15 persons were killed in February 15. 150 persons were injured and 64 persons were killed in a serial blast that took place in Jaipur on 30th May. In October 30 Assam witnessed another blast in which 30 persons were killed and on 26th November in the most dastardly manner the terrorist could penetrate our financial capital Mumbai and killed 125 persons and injured 227 persons. They could capture the most prestigious and luxurious Taj Hotel and keep the guests as their hostage for several days.
A good number of Muslim youths are drawn into the terrorist net work. A feeling has been allowed to be generated among the Muslim youths that the state would not ensure justice to the minorities which helps ultimately the extremist elements to recruit them, doctrinate them and use them. Retaliation against the killing of Muslims in various parts of the country, especially Jammu and Kashmir and Gujarat is the ploy terrorist outfit employs in propagating hatred. The recent developments like the arrest of two Bhajarang Dal activists from Khanpur, Malegoan the explosion in Nandeal, Maharashtra, the wide spread attacks and killings of Christians in Orissa and Mangalore had given credence to this propaganda. The police had been rounding up them upon suspicion creating a vicious circle. Thus retaliation becomes the motivation behind terrorism. It is therefore necessary to address the root cause and diagnose the malady properly rather than prescribing cosmetic treatment. In the wake of the most bestial attack that happened in November, 2008 at Mumbai the government has decided to set up a Federal Agency to combat the terrorist attacks. Demands had been made quite often especially by the BJP for making enactments of anti terrorist laws on the lines of what they have done during the NDA regime. It is not the lack of laws and enactments that has come in the way of combating terrorism. In fact such laws if enacted will only be a tool in the hands of law enforcing agencies to terrorise the people they do not like. It would be a means of putting in convenient people away without a bail for a longer period and eventually letting them out for want of evidence. What is needed is a government with secular credentials and capable of acting impartially in delivering justice to eradicate terrorism effectively.
4.5. 15th Lok Sabha Elections
Contrary to the predictions of the media and the perceptions of the opinion makers in the country the Congress led UPA was voted back to power. Though the UPA could not muster a simple majority they were very near to the mark of 272. Congress won 206 seats against the 116 of the BJP. UPAs tally was 252 seats whereas of NDA was 157. The 2009 Elections dashed the hopes of all regional and smaller parties to play a significant role in the 15th Lok Sabha. Dr. Manmohan Singh becoming the Prime Minister for the second term is a feat that has happened after 47 years. Only the late Pandit Jawaharlal Nehru had to his credit of voting back as Prime Minister after a full term of 5 years. It was the feeling of the Indian electorate that only Congress can provide a stable and secular Government that has made this spectacular victory possible for the Congress. The enactment of National Rural Employment Scheme, though it was at the behest of the Left parties and the bank loan waiver helped Congress in this election. The NDA campaign during the election was non-productive and the manner in which BJP commended Varun Gandhi's communal utterances in Pilibit must have gone against them. In this Election the Left parties were almost decimated even in its stronghold, West Bengal and Kerala. Congress in the company of DMK could defeat the AIADMK in Tamil Nadu and Dr. Y.S. Rajashekara Reddy led the party in Andhra Pradesh to defeat the third front led by Telugu Desam. The fourth front of Lallu Prasad Yadav, Ram Vilas Paswan, Mulayam Singh Yadav suffered heavily at the hustings. Only in two states, the Congress led combination electoral defeat i.e. in Bihar and Orissa. The public perception against the third parties that they would not be able to remain united and steer together with a common policy did affect their prospects severely. The Congress party's success in the Lok Sabha Elections continued in the 2009 Assembly Elections also.
4.5. Devastating Floods:
a) Bihar:
The Kosi river is one of the largest tributaries of Ganga known for its calamitous swings from east to west. It is called the sorrow of Bihar. It is one of the most turbulent rivers in the world. It has a habit of changing its course and breaching its embankment spreading devastation and misery along its banks. This year it changed its course and shifted over 120 Kms eastwards, rediscovering channels which it had abandoned over 250 years ago. The torrential rains and melting ice in the Himalayas have made these rivers carry a heavy load of sediment down to the Bay of Bengal. On August 18, Kosi burst through its eastern embankment at Kushava in Nepal and violently swam 120 Kms towards its original course. It caused deluge in villages, towns and cities over 16 districts in Bihar mainly Supaul, Madhepura, Saharsa, Araria, Khagaria and Purnea. 40 lakhs of people were affected by the unprecedented flood situation. It is said to be caused by the criminal negligence on the part of the government of Bihar, its engineers and bureaucrats. There had been no maintenance worth the name of the embankment and it is believed that the funds allotted have been misappropriated. People lost crops, land, their home and other belonging. It is reported that the change of the course of the river resulted in the river attaining a width of more than 30 Kms on the plains of Bihar. It is considered the biggest flood disaster ever and the life of thousands of people have changed permanently. The rehabilitation of thousands of people who lost everything is a daunting task.
b) Assam:
Assam is a flood prone area. The sea like river Brahmaputra and its tributaries during the monsoon go berserk. This year 19 districts were affected by the floods. 21 lakhs of people living in 2424 villages are reported to have been uprooted and homeless.
c) Orissa:
The opening up of the 46 flood gates of the Hirakud Dam has been reported to have the cause of severe floods in Orissa affecting 18 districts and 50 lakhs of people. It was the criminal negligence on the part of the dam authorities who did not adhere to the 1988 guidelines of the Central Water Commission to the effect that the water in the dam should be released only in phases to reduce the severity of floods. The relief operations in all the above 3 states have not been adequate, large number of people are still to be rehabilitated.
d) Karnataka, Andhra Pradesh & Kerala
The fury of flood in 2009 affected the southern states of Karnataka, Andhra Pradesh & Kerala. The southwest monsoon which normally lashes the southern coast of Kerala by the end of May 2009 and intensifies in the month of June/July 2009 was abnormally delayed this year. It was actually interrupted by the stormy winds called Aila which devastated parts of West Bengal in the first week of June. When the southwest monsoon ultimately resumed, it created havoc in Orissa where quite number of people lost their lives in Nayagarh district. 13 people lost their lives in Kerala. It is reported that over a lakh of people have been hit after the incessant rains in Assam and other North East region.
Karnataka and Andhra Pradesh became the victims by the end of September 2009. The Government of Karnataka had declared many parts of Bagalkot district, drought affected due to the sparsy monsoon rainfall. However the low pressure system which developed over Bay of Bengal moved into Karnataka and Andhra Pradesh by September 28th. Until 3rd of October, it was non-stop rainfall resulting in the worst floods in the region over a century. The floods inundated about 4500 villages and 5,00,000 dwellings. 226 people are reported to have been killed. Eight lakhs of people had to be rehabilited. The entire crop was destroyed. Initial reports of the district authorities of Bellary and Raichur says damages to more than 40,000 hectares of paddy cultivation. For the first time in the history of Tungabhadra Dam it crossed the danger level by 1st October 2009 making it an inescapable option for Engineers to open the gates of the dam. The floods devastated Kurnool and Mahabubnagar districts in Andhra Pradesh. The people residing in the villages of Gundrevula, Sunkesula, Rajoli on the banks of the Tungabhadra river lost everything they had.
There had been vociferous complaint of inaction on the part of the Government especially the irrigation department authorities. The Government of Andhra Pradesh and Karnataka along with the Central Government has tried to bring in relief measures to the effected people.
4.6 Rajasthan Water Struggle:
The struggle for water for the purpose of irrigation by the farmers of Gharsana village of Rajasthan is an important event during the period under report. The farmers resumed their agitation in October, 2007, since the Govt. could not or did not implement the December, 2004 accord. The agitation was spearheaded by a struggle Committee, consisting of farmers, workers and traders. The agitation went on for long two months. Repressive measures were employed by the Rajasthan Govt. In the brutal police lathi charge, more than 200 people were seriously injured and two persons died. The army had to be deployed to quell the agitation. The leaders of the struggle committee were arrested and imprisoned.
4.7 42nd Session of Indian Labour Conference
The 42nd session of the Indian Labour Conference was held at New Delhi in Feb. 2009. The conference raised several issues relating to labour consequent upon the global financial crisis. The Conference commenced with the presidential address of the Labour Minister with the hyperbole "we do not realize that some one somewhere ate less so that we could get our full meal, some one slept less so that we could sleep in comfort, some one worked overtime with less income so that our huge systems could run" but did not mention anything as to what he proposes to do to alleviate the suffering of the workers. The conference was to discuss inter alia in its agenda the global financial crisis, its effects, viz. large scale downsizing, lay offs, wage cuts and job losses etc. The Trade Unions raised the issues like, withdrawal of ban on recruitment in state and central services as well as public sector undertakings, to provide more jobs to workers, employment guarantee Act to provide work for 180 days instead fo 100 as at present, review of export-import policies that affect Indian industry and employment, stringent steps against violations of labour laws and end to outsourcing of work of permanent and perennial nature. Employers' representatives asked for more stimulation packages and flexibility in labour laws. They also justified the steps taken by the industry during the economic meltdown.
4.8 National Convention of workers.
After a prolonged period of about 25 years, the entire trade union movement in the country came together to hold a National Convention of workers on 14th September., 2009 at New Delhi. All the Central Trade Unions in the country, i.e.INTUC, BMS, CITU, AITUC, HMS, AIUTUC, TUCC, AICCTU and UTUC were represented at the convention. The convention adopted a declaration calling upon the workers and employees and their unions irrespective of affiliations to unitedly highlight their concern over the following issues and participate in the progrqamme of action to compel the Government to take urgent corrective measures to address the following issues.
1.Rising prices of essential commodities; 2.continuing job losses owing to recession and economic slow down,3.non- implementation and violation of basic labour laws,4. Adequate social security measures for the unorganized workers;5. disinvestment in the public sector enterprises.
5.ORGANISATIONAL MATTERS
5.1.National Council meetings:
As per the Constitution of the Confederation organizationally the highest deliberatative body is the National Council meeting which is to meet once in three years. The Constitution was originally adopted by the National Council held at Kolkatta on 13th & 14th September, 1958. For about 25 years the functioning of the Confederation had been in consonance with the provisions of the said constitution. The National Council held in 2003 in Delhi made certain major changes to streamline the functioning of the Co-ordination Committees. The Thiruvananthapuram meeting of the National Council held on 1st and 2nd September, 2006 made certain further amendments in tune with the requirement of the present day time. It changed the composition of the Office bearers, the rate of subscription and the entitlement of Councilors for the affiliates. For the first time the Council decided to ensure certain number of Associate Councilors for each state level Co-ordination Committees. The National Council meeting at Thiruvananthapuram had the participation of 90 delegates representing about 30 affiliated Federations and 16 delegates representing the state Co-ordination Committees. Besides 23 observers witnessed the proceedings of the National Council. The National Council also adopted 24 resolutions on various issues confronting the Central Government Employees and certain other resolutions depicting the issues and demands of the Common working people of the country. The National Council had a two day session of which the inaugural session was on 1st September, 2006 forenoon. The Council meeting was to be inaugurated by the Hon'ble Chief Minister of Kerala, Com. V.S. Achutanandan. However, due to his illness he could only send the message which was read out at the session. The inaugural speech was delivered by Com. P.K.Gurudasan, Hon'ble Minister for Labour in the state of Kerala. The deliberations at the Conference were lively and the proceedings were conducted by a presidium consisting of the President of Confederation Com. C.C.Pillai and other Vice-Presidents. The minutes of National Council meeting is annexed (Annexure-1/5.1). The National Council elected the following comrades to hold various positions in the Secretariat (CHQ).
President Com. S K Vyas (Audit) Working President Com. C.C. Pillai (NFPE) Vice Presidents.Com. T. Narasimhan (NFPE) and Com. A B Sen (Audit) Secretary General Com. K K N Kutty (ITEF) Secretary Com. M S Raja (Audit) FinanceSecretary. P.V.Ramachandran,ITEF Asst.Secretaries: Com.N.Somayya(Ground Water Board) and Com. Brighu Bhattacharya (Civil Accounts) Organisational Secretaries 1.Com. Jagannath Singh (NFPE) Bihar 2.Com. Gautam Pramanik (Audit)W.Bengal 3.Com. M.Duraipandian (Audit)Tamil Nadu 4.Com. P K Das(IBM) Nagpur 5.Com. Baswanand (ITEF)Delhi 6.Com.D P S Madan(Central Sectt)Delhi 7.Com. Selvaraj(NFPE)Tamilnadu 8.Com. G S Ashiwal (NFPE)Bhopal Auditor Com. R.P. Singh (DMI)Mumbai
5.1.2. National Executive Committee Meetings:
National Executive Committee is composed of the Office bearers and nominated Committee members. During the period between the National Council meetings the National Executive Committee is empowered to take decisions to conduct the affairs of the Confederation. During the period under report the National Executive met 12 times. On several occasions the meeting along with the Secretaries of the State CoCs to ensure the successful carrying out of the programmes chalked out by the Confederation. The frequent meeting of the National Executive has helped in rejuvenating the functioning of the Confederation.
There are more than 90 affiliated organizations. It had been the directive of the National Council held at Thiruvananthapuram to the National Executive to enlist the participation of all Central Government Organisations. Only very limited success could be registered during this period under report in this regard. Apart from enlisting new Organisations as affiliates it was also one of the important objectives decided upon at the National Council meeting to ensure the enlivened participation of the affiliates. The present set up of the National Executive does not envisage the inclusion of the Chief Executive of all affiliated organizations. In the context of this inbuilt deficiency the Secretariat has decided to propose to this Council meeting for the amendment of the Organisational structure. It is, therefore proposed that the organizations must be structured, in the following manner:
1. National Conference at the Apex level as the highest deliberative body which must meet once in 3 years. 2.National Council which is composed of the elected Office bearers, Chief Executives of all affiliated Associations, Unions, Federations which must meet once in a year. 3. National Executive consisting of the elected office bearers and elected Committee members which must meet frequently but at least once in six months. 4.Secretariat consisting of elected office bearers to meet frequently to discuss about the day-today issues.
The National Executive was also entrusted with the responsibility of organizing State level Conventions to form State level Co-ordination Committees. Even though conventions/Conferences were held in most of the states it cannot be said that the State CoCs have been constituted with the required set up having district level Committee baring in a few states. A critical assessment of the accomplishment of this task will reveal the unfrucitified attempt in the matter. Without a strong state COC the effective participation of the affiliated organizations at the grass root will not be forth coming..
The National Executive during the period under report had deliberated upon various issues and problems confronted by Central Government Employees. A major part of the time especially in 2007 and 2008 had been spent on discussing the Pay Commission related matters. A detailed analysis of the issues taken up and the pursuance there of through negotiations and agitational programmes form part of this report elsewhere.
5.1.3.The Secretariat:
The Secretariat had been meeting frequently. In most of these meetings it was possible only to enlist the attendance of Comrades who were functioning from New Delhi. It is difficult for the organizing secretaries who are mostly stationed out side New Delhi to be participant in all these meetings. The Secretariat meetings had been mostly held as a prologue to the National Executive meetings to prepare and present the agenda items for discussions.
5.1.4 Confederation CHQ Finances :
Confederation Finances is augmented by way of annual subscription from the affiliates on the basis of their membership. Presently the subscription rate is Rs.1/- per member. Even though the rate of subscription is very low the remittances from the affiliates had been few and far between during the period under report.
5.1.5.News Journal:
One of the most important decisions taken at the last National Council meeting was to bring out a news journal for establishing an effective communication system between the Confederation, its affiliates, State COCs and the mass of the members. Due to sheer financial inability no attempt could be made during this period to bring about such a journal even though the Secretariat considered it to be an essentially important requirement for effective functioning and efficient inter communication, Since the issue is interlinked with the augmentation of the finances it is desirable that the Council takes appropriate decision in the matter.
5.1.6 International Link:
Confederation is affiliated to the Trade Union International of Public and Allied employees, a wing of the World Federation of Trade Unions. The present Secretary General of Confederation was elected as one of the directive Committee members of the TUIPAE world conference held at Johannesburg, South Africa on 20th to 22nd March, 2006. The next Conference was held at Brasilia in Brazil on 28th to 30th June, 2009. The Secretary General of the Confederation was elected as the Vice-President of TUI. Elsewhere in the report a detailed account of the TUIPAE has been incorporated.
5.1.7 Confederation in the Committee of other workers organizations:
Confederation had been participating in the Sponsoring Committee of Trade Unions in the Country which spearheads the united movement of the working class on the issues pertaining to the workers in general. During the period under report it has campaigned amongst the mass of the employees the pernicious impact of the economic policies of the Government of India on working class in general and Government employees in particular. It has ensured the larger participation of the Central Government employees in the common struggles of the working class. The Secretariat had certain peculiar problems emanating from the anti-labour attitude of the Government of India such as the Govt. employees have no right to strike, right to collective bargaining, the continuation of the colonial Service conditions, the denial of democratic rights etc. Besides, the Central Govt. employees were the worst victims of the policies of liberalization whereby various functions which were hitherto in the domain of the Govt. have been transferred to private sector resulting in the heavy reduction in man-power. During the period under report most of the departments indulged in the highly unethical practice of outsourcing/downsizing and contractorisation of various functions. The joint movement under the banner of Sponsoring Committee could bring home the necessity of fighting against the Govt. policies jointly.
5.1.8 Issues discussed at the National Executive Committee meetings.
On 15th October 2006 the newly constituted National Executive met and reviewed the process of negotiation that was held in the 45th meeting of the National Council of JCM on 14.10.2006. At the said meeting of the National Council the staff side raised the demand for Interim Relief. No settlement was brought about on the question of interim relief. Similarly on the demand for withdrawal of the contributory Pension Scheme, on down sizing of various departments of Govt. of India, counting the temporary status period for pension purpose, implementation of the Arbitration awards there had been no tangible outcome in the discussions. The orders issued by the Govt. on the question of ceiling limit on compassionate appointment were also considered unsatisfactory. In the background of this the National Executive decided to get in touch with the leaders of All India Defence Employees Federation and Federation of National Postal Organisations to explore the possibility of a joint movement on the question of Interim Relief, New Pension Scheme, Down-sizing, Lifting the ceiling limit on compassionate appointment, lifting the ban on recruitment and setting up of the independent judicial committee to go into the wages and service conditions of the Gramin Dak Sevaks, etc. The Executive decided to organize a Dharna programme at all State capitals and other selected centres to project the above demands. The Secretariat was authorized to monitor the programme by ensuring the physical presence of National Executive member at each centre where the programme is slated to be carried out. The State COCs were asked to ensure that a minimum number of Comrades (100-150) participate in the Dharna at all places. This paved the way for rejuvenating the functioning of State COCs and to gave impetus for successful implementation of the programme of action. The non-grant of interim relief naturally angered the mass of the employees. It was therefore decided by the National Executive that the issue for the grant of interim relief must be taken up seriously even if the other Central Govt. organizations participating in the JCM do not evince interest. The campaign unleashed by the Confederation had its desired impact. Even though it was assured by the Govt. that the question of interim relief would be considered prior to the issuance of the notification, the expectation of the employees were believed in as much as the Govt. issued the notification without any accompanying order on the Interim Relief. Instead the demand for interim relief was referred to the 6th Central Pay Commission specifically so that the Commission could make a report to the Govt. on the grant of interim relief. It was decided by the staff side of the JCM National Council that a memorandum on interim relief must be submitted to the Pay commission immediately. In the memorandum that was submitted to the Pay Commission on behalf of the Staff side and the Confederation the demand for interim relief was formulated on the basis of a wage differential in the minimum wage structure of the Central Govt. employees and Central public sector undertakings. Copy of the memorandum submitted to the Pay commission on the question of interim relief form part of the annexure to this report (Annexure 2/5.1.8).
The Staff side of the JCM decided to have a commonalty of approach as was done before the 4th and 5th CPC. The Confederation Secretariat deliberated upon the formulation to be made before the 6th CPC on a number of times and decided that the Minimum Wage must be as per the ILC norms for Need Nased Minimum calorie. The minimum wage; construction of pay scales, the rational approach on various allowances, the capacity question etc., were the important issues that were incorporated in the memorandum. The Confederations approach to these issues were appreciated and adopted by the Staff Side. Almost all the organizations of the CGES adopted the memorandum on common issues and endorsed the same while formulating the department specific suggestions. The copy of memorandum finally submitted to the CPC on behalf of the Confederation forms part of the annexure to this report (Annexure-3/5.1.8).
The National Executive also endorsed the demand of the Sponsoring Committee to organize a Nation-wide Strike against the new economic policies on 14.12.2006. To ensure that large number of Central Govt. employees do participate in the momentous strike action the National Executive called upon the State level COCs to convene state level conventions uniformly on 14th December, 2006. It was also decided that the said convention should also be meant not only for initiating a serious campaign against the economic policies but also to serve as an instrument for setting up of the State level COCs. This experiment did serve the twin purpose in as much as most of the State could form the State level COCs enlisting the participation of representatives from the district level COCs. A detailed review of the strike participation of the Central Govt. employees in the 14th December, 2006 strike action under the auspices of the Sponsoring Committee was made by the National Executive on 5th February, 2007. It was noted with satisfaction that the extent of participation of the employees in the 14 December strike was fairly larger than on all earlier occasions. And the Executive come to the conclusion that the decision to participate in the strike taken at the National Council meeting at Thiruvananthapuram; the intensive campaign organized by the affiliates; the nationwide Dharna programme organized at all state capitals with uniform methodology; the state conventions held at all state capitals on 4.12.2006 have all contributed to increased participation of the CGEs.
In the wake of the decision of the Chief Minister's conference held at New Delhi on 22nd January, 2007 to usher in the New Contributory Pension scheme for Central and State Govt. employees (with opposition from West Bengal, Kerala and Tripura) the state and Central govt. employees decided to again come together to fight against this new scheme. Accordingly a joint meeting was held at New Delhi and it was decided to hold a Dharna Programme before the Parliament House on 7th March, 2007. Simultaneously it was also decided that the COCs should also organize similar programme and give memorandum through the Governor to the Prime Minister. The leaders of Confederation and All India State Govt. Employees Federation submitted a memorandum to the Prime Minister on the conclusion of the Dharna Programme. The memorandum drew the attention of the Prime Minister to the highly arbitrary and illegal method employed by the Govt. to impose the new Contributory Pension Scheme without getting the PFRDA bill passed by Parliament. It was also pointed out in the memorandum that the scheme evolved is contrary to the recommendation made by the Bhattacharya Committee set up by the Govt. to look into the Pension Fund management in the Country. The Committee had recommended for introduction of a hybrid system of defined benefit and contributory methodology Pension Scheme with option to the employees to choose as they like. As there had been no guarantee for defined social security at the end of the service the memorandum demanded that the Govt. rescind the decision.
Since on the question of interim relief both the govt. and Pay Commission did not render justice to the employees the National Executive of Confederation met on 5th June, 2007 and discussed the issue at length. It took note of the fact that the Pay Commission to whom the issue of interim relief was referred to had made it abundantly clear that it would not like to consider the grant of an interim relief for it had no intention of overshooting the time limit stipulated by the govt. for submission of its report. It also became clear that other than Confederation and its affiliates no other organization was interested in pursuing the demand for interim relief. In the situation so emerged the National Executive decided to adopt a resolution demanding settlement of various issues which had been subjected to discussion in the past including interim relief, Compassionate appointment and withdrawal of New Pension scheme. The resolution adopted by the National Executive of Confederation which became the premise for joint strike action with the All India State Govt. Employees Federation on 30th October, 2007 is placed as an annexure to this report (Annexure-4/5.1.8). To give effect to these resolutions a joint Convention of the State and Central Govt. employees was held at MPCU Shah auditorium, Civil Lines, New Delhi on 13th August, 2007. The Convention had the participation of not only the representatives of the Central and State govt. employees but also of the School and college Teachers organizations. The Convention adopted a declaration and decided to organize a strike action on 30th October, 2007 to pursue a 12-point Charter of demand. Copy of the declaration adopted at the Convention as a brief explanatory note on each of the 12 point Charter of Demands form part of the annexure to this report (Annexure-5/5.1.8). Explanatory memorandum on demands see Press Statement). It was also decided at the Convention to elicit the support and solidarity of various Pensioners Organisations to make the 30th October strike a grand success. The strike participation of the Central Govt. employees in the 30th October, 2007 strike was reviewed by the extended meeting of the National Executive held at Bangalore on 9th December 2007. By the time the Govt. had decided to revise the bonus ceiling of the emoluments for computation from 2500 to 3500 by amending the Bonus Act. The Confederation took up this matter with the Govt. to ensure that the benefit of the amendment is extended to the Central Govt. employees. Since the amendment to the Bonus Act was agreed upon by the Cabinet after the disbursement of bonus to the Central Govt. employees the Govt. extended the benefit only with effect from 1st of April, 2008.
The National Executive meeting held at Mumbai on 2nd and 3rd March, 2008 which reviewed the strike participation of Central Govt. Employees came to the conclusion that it had been one of the best participated strike action in the recent history of the Central Govt. employees. The two important issues that could be projected for settlement were the grant of Rs.1000/- as Interim Relief pending wage revision and the withdrawal of the New Contributory Pension Scheme. The strike was reported to be total in Kerala, West Bengal, North Eastern States, Andhra Pradesh, Tamil Nadu, and Maharashtra and widespread in Karnataka, Gujarat, Madhya Pradesh, Jarkhand, Chhatisgarh, U.P and partial in North West Region and Delhi.
The Bangalore meeting of the National Executive approved the Press Statement of Confederation indicating that nearly 8 million Govt. employees including Central, State, College and School Teachers participated in the Strike Action of 30th October, 2007. In so far as the Central Government employees are concerned the strike action elicited large participation to protest against the non-grant of interim relief. The National Executive Meeting at Bangalore also discussed the steps needed to remove the organizational weaknesses inasmuch as some of the important affiliates of the Confederation had not been evincing interest in the day to day functioning or carrying out the programmes of action of the Confederation. Com. President and Com. Secretary General were asked to interact with the leaders of CPWD Workers Union, The All India CGHS Employees Union, various Survey organizations. It was also decided that the Confederation should take initiative in mobilizing opinion of all organizations to ensure the date of effect of the pay commission recommendations is 1.1.2006, to strengthen the health scheme facilities, to ensure that the new pension scheme was withdrawn, to remove the ceiling on compassionate appointments, regularization of daily rated workers, implementation of arbitration awards, etc. To make the campaign programme effective it was also decided to have a badge wearing program on 03/01/2008 followed up by a dharna program from 07/01/2008 to 10/01/2008 and to organize a massive procession in all State Capitals and to take up the long pending issues before the Government, through the members of the Parliament.
The meeting also decided to set-up a committee to present a memorandum to the Chairman of the sub-ordinate legislature on the need of bringing in enactment for regulating the service conditions of the government employees.
The extended meeting of the National Executive Council which was held at Mumbai on 2nd and 3rd March 2008 had the participation of the Secretaries of various State COCs. It reviewed the progress in the formation of State COCs and resolved to complete the said task expeditiously inasmuch as it had become clear that the recommendations of the 6th CPC would not address satisfactorily the core issues and struggle was inevitable. The meeting came to the conclusion that the Secretariat must have the following points of view:
a) There should be no compromise as to the date of effect of the 6th CPC i.e., it must be 01.01.2006.
b) The minimum wage should not less than the need based minimum wage computed on the basis of the norms fixed by the 15th ILC including Dr.Aekhroyd formula.
c) That the minimum rate of increment should be 5% as demanded by the Staff side in its memorandum on common issues;
d) That point to point fixation should be the methodology to fix pay in the revised scales of pay;
e) That the revised rates of allowance should also be admissible w.e.f. 01.01.2006.
f) That the performance related pay system being divisive and a tool for exploitation is not acceptable and should be rejected, if recommended;
g) That no departure from the existing statutory Pension scheme should be allowed and the new contributory pension scheme introduced for employees recruited on or after 01.101.2004 should be withdrawn;
h) That there should be no privatization of health care system (CGHS, CSMA etc) and the proposed introduction of Medicare insurance scheme should not be in replacement of the existing scheme. Instead the existing CGHS should be strengthened and all pensioners be covered by either CSMA Rules or CGHS
The meeting further resolved that if no settlement is brought about through bilateral negotiations on the above stated issues, the Central Government organizations should be mobilized for struggles including indefinite Strike Action. The meeting also decided, apprehending that the recommendation of the 6th CPC would fall short of the expectation of the employees, to organize protest rallies and demonstrations on the date following the recommendations of the 6th CPC. On the denial to bring the Gramin Dak Sevaks within the purview of the pay commission the meeting decided to resolve that the wages of Gramin Dak Sevaks must be determined in proportion to what is granted to the regular Government employees.
On 24th march, 2008 the Pay Commission submitted its report to the Govt. and it was placed on the official website on the same day. The Confederation on going through the various recommendations of the 6th CPC issued a Press Statement on 25th March, 2008 which form part of annexure to this report (Annexure-6/5.1.8).
The approach of the Confederation to the 6th CPC recommendations were finalized thereafter in the National Executive meeting held on 27th April, 2008. Formulations were made by the secretariat of the Confederation prior to the holding of the National Executive and the same was subjected to discussion in the Staff Side meeting of the JCM. On the basis of these discussions the Staff side submitted amendments required to be made to the recommendations. The demands ultimately taken up with the Govt. for discussion in the Standing Committee and later with the Cabinet Secretary is annexed (Annexure-7/5.1.8).
It was this meting which approved the press statement issued by the Confederation of 24th March 2008 and evaluated the various points mentioned in the Confedeation letter dated 24th March 2008.
The committee appreciated the fact that the analysis of the recommendations of the Pay Commission by the Secretariat contained in the letter of 24th March 2008 was comprehensive and factual. Annexure to this report is the press statement and the letter dated 24th March, 2008 (Annexure-8/5.1.8).
It was decided to prepare a note on the issues to be presented in the Staff Side meeting of the JCM for their consideration. The note which contained 14 issues to be taken up with the Government is also annexed to this report (Annexure-9/5.1.8). On the basis of the deliberations of this meeting it was decided to adopt a nine point Charter of Demands and organize agitational programmes against the negative recommendations of the 6th CPC.
Com. Secretary General and Com. President who participated in the negotiations with the Government on behalf of the Staff Side reported to the Committee that they were disappointed over the course of negotiations and discussions with the Cabinet Secretary. They informed the house that there had been no emphasis on core issues like minimum wage, fitment formula, construction of pay bands, benefit of promotions, allowance, etc., as most of the representatives who participated in the meeting with the Cabinet Secretary availed the opportunity to project department specific anomalies sidelining the core issues out of focus. It was emphasized that the minimum wage if fixed at a figure less than Rs. 7400/- would bring about a decrease in pay packet over the next 5 years, due to the suppressed pay bands and the non-availability of benefit of DA merger in future.
On the basis of the decisions taken at the National Executive Meeting held on 27th and 28th April 2008, the Secretariat of the Confederation met on 27th May, 2008 and adopted a resolution urging upon the Government to bring about a negotiated settlement by accepting the following core demands taken up by the Staff Side of the JCM on 17th April, 2008 before the Committee of Secretariates.
1. Re-computation of Minimum Wage
2. Reconstruction of Pay Bands
3. Revise fitment formula to a minimum of 2.625 of basic pay
4. Enhancing the rate of increment
5. Promotion benefit
6. No contractorization of Gr.D functions.
In the meantime the Sponsoring Committee of the Central Trade Unions decided to organize yet an another Strike on 20th August, 2008 against the neo-liberal economic policies of the Government. In the trade union convention held on 13th July, 2008, Confederation was represented by Com. S.K. Vyas, President, Com. Brigu Bhattacharya, Assistant Secretary, Com. Giriraj Singh, Chairman of Delhi State Co-ordination Committee. The declaration adopted at the convention had six point Charter of Demand with a programme of action culminating in a days strike on 20th August, 2008. In consonance with the policy and programme resolution adopted at National Council Meeting held at Thiruvananthapuram, Confederation Secretariat decided to call upon the Central Government employees to participate in the Strike Action slated for 20th August 2008. In order to ensure that wider participation of Central Government employees in the 20th August 2008, strike is assured, the Secretariat decided in consultation with the All India State Government Employees Federation, the School Teachers Federation of India and the College and University Teachers Federation, that they hold a nation wide convention on 8th July 2008 at New Delhi. The said convention adopted a declaration which became the basis for mobilization of the Central/State and Teachers of the country to participate in the 20th August 2008 strike (copy of declaration annexed – Annexure-10/5.1.8). Accordingly, strike notice was served on 3rd August, 2008 on the Cabinet Secretary indicating that the Central Government employees who are members of the affiliated federation/organizations of the Confederation would be on a days strike on 20th August 2008 to pursue the following Charter of Demands :
The demands adopted by National convention of Central and State Government employees and University, college and School teachers on 8th July, 2008
- Accept the modifications suggested by the Staff Side JCM in the Standing Committee meeting held on 7th May, 2008 and implement the 6th CPC recommendations accordingly.
- Afford right to strike to Government employees
- Withdraw the new contributory Pension scheme and extend the existing defined benefit pension scheme to all Govt. employees including those recruited after 1.1.2004.
- Stop privatization, corporatisation and downsizing of Government department and abandon the neo-liberal economic policies.
The Demands adopted in National Convention of Trade Unions on 13 May 2008
- Take urgent step to contain price-rise through (a) universalizing the public distribution system throughout the country to cater all essential commodities at controlled price through PDS, (b) ban on futures and forward trading in all essential commodities, (C) reduction of tax in petrol and diesel, (d) stringent action against hoarding and black marketing.
- Strict implementation of all labour laws particularly in respect of minimum wages, working hours, social security and safety and stringent action against all cases of violations; stop contractorisation and outsourcing
- Scope of the Unorganised Sector Workers Social Security Bill pending in Parliament should be expanded to cover all unorganised sector workers irrespective of BPL or APL category to ensure a national minimum social security benefit for them as per unanimous recommendation of the National Commission for Enterprises in the Unorganised Sector (NCEUS) and the Parliamentary Standing Committee on Labour with Central Govt Funding.
- Farmers Loan Waiver Scheme to be extended to loans from private moneylenders; nationalized banks to extend easy credit to peasants at lower interest rate.
- Lift ban on recruitment in Govt services; remove the negative and discriminatory features in the recommendation of 6th Pay Commission and finalise the same for implementation in consultation with the employees organisations; expedite regularization and grant of pension to 'gramin dak-sevaks.'
- Expedite wage negotiation for the employees of Central PSUs including the contract workers without any conditionality.
The 20th August 2008 strike was a widely participated strike of Central Government employees due to the strenuous efforts of the COCs and affiliated organizations.
Since the issues projected before the Government for settlement, emanating from the 6th CPC report were not being addressed by the Government and the railway leadership having been publicly appreciating the Governments stand in the matter, the Confederation was left with no alternative but to convene the National Executive Meeting once again and to decide upon Strike Action to pursue the issues to its logical end.
Accordingly, the National Executive met on 13th December, 2008. After reviewing the implementation of the decision taken at the meeting of 26th August, 2008, it was decided to organize indefinite strike action in pursuance of the 20 point Charter of Demands. The Charter of Demands in pursuance of which the strike should be organized was prepared in the meeting and it contained the following demands :
Charter of demand
Part I. 6th CPC related issues
1. Grant Rs 10000 as minimum wage as per 15 ILC Norms.
2. Grant minimum fitment benefit of 2.625 times of pre-revised basic pay to bring about uniform rise of 40% in emoluments and raise grade pay to 50% of the maximum of the pre-revised scales in respect of PB 1,2 & 3 as has been done in the case of PB 4.
3. No abolition of Gr.D. Posts and functions. Lift ban on recruitment, fill up all vacant posts and scrap screening Committee.
4. Grant 10% of pay+ Grade pay as minimum benefit on promotion or financial up gradation.
5. Fix the date of effect of all allowances as 1.1.2006.
6. No performance related pay or bonus scheme
7. Revise the Transport and daily allowances as demanded by the staff side JCM National Council.
8. Remove the condition of 6 months for applying the uniform date of Ist July as increment dates.
9 . ACP to be on hierarchical system obtaining in each department.
10. Retain and improve CGHS and make insurance scheme optional
11. Implement flexitime working hours for women/disabled employees as recommended by the 6 CPC and remove clause (iv) of OM No.13019/2/2008-Estt.(L) dated 18th Nov. 2008 on Child Care Leave.
12. Direct all the Departmental Heads to settle 6th CPC related department specific demands/problems within a stipulated time.
13. Grant civil servant status and Pension to 'Gramin Dak-Sevaks.'
14. No reduction in the commutation value and restoration of full pension after 12 years.
15. Compute the pension entitlement on the basis of notional pay as on 1.1.1996
Part II
Demands pending settlement for long in the National Council JCM
1. No outsourcing or contractorisation of Govt. functions.
2. Grant statutory defined pension scheme to the employees recruited after 1.1.2004 and withdraw the PFRDA Bill from Parliament.
3. Implement the Board of Arbitration Awards.
4. Remove the arbitrary 5% ceiling and 3 years condition on compassionate appointment and withdraw court cases and absorb all waitlisted RRR candidates.
5. Implement the revision of bonus ceiling @ 3500/- in the case of all personnel employed by the Government including casual/contingent and daily rated workers and Grameen Dak Sewaks. Replace adhoc bonus with the PLB and remove the 60 days ceiling.
An elaborate tour programme was also decided upon to make the proposed strike action successful in its participation. In the wake of the Governments final decision on the 6th CPC recommendations having being conveyed, the National Executive again met on 26th August 2008 at New Delhi. The representatives of the 20 affiliated All India Organisations and 11 State COCs were present at the meeting besides the National Executive committee members. After detailed deliberations, it came to the conclusion that the Governments decision on the following issues had been absolutely unsatisfactory.
a) Minimum wage
b) Contractorisation of Group D functions
c) Fitment formula
d) Financial benefit on promotions
e) Transport allowance, daily allowance etc.
f) The denial to give effect to the revised allowance from.1.01.2006. etc
On 2nd January 2009, the Confederation served the Strike Notice intimating the Cabinet Secretary that the members of the affiliated organizations/federations of Confederation would be embarking upon an indefinite strike action commencing from 20th January 2009 for settlement of 20 point Charter of Demands. An explanatory note on each of the issues included in the Charter of Demands had been prepared and circulated on 20th December 2008 to enable the common membership to appreciate the issues involved. The note is annexed to the report (Annexure-11/5.1.8).
To review the preparations of the Strike which was to commence on 20th January 2008, the National Executive met again on 15th January 2009. It came to the conclusion that more intensive mobilization and campaign programme were needed to carry out the decision of indefinite strike and therefore decided to defer the Strike Action to a future date. The circular letter issued on 15th January 2009 reads as under:
"The meeting of the National Executive of the Confederation was held at New Delhi today to review the preparation for an indefinite strike action scheduled to commence from 20th January, 2009. The meeting heard the Secretaries of the affiliated Associations/Federations and Unions as also the secretaries of the Co-ordination Committees. The Comrades who were deputed to attend the State level Conventions also made their observations at the meeting. Most of the Speakers expressed the need for further time to reach out the membership in far flung areas. The meeting came to the conclusion that more intensive mobilization and campaign programmes are needed to successfully carry out the strike action with full participation of the membership. It was therefore decided not to commence the strike action from 20th January, 2009 but defer the same to a future date and carry out an intensified campaign amongst the mass of the employees. All affiliates will advise their State leadership to visit all branches and hold meetings to explain the Charter of Demands, educate and mobilise their employees for the eventual strike action. Campaign material circulated by the Confederation (CHQ) (available at its website: confederationhq.blogspot.com) will be translated into vernacular and circulate amongst the members. The said campaign should be concluded by 15.02.2009. The National Executive will meet again in February to take further decision in the matter.
The representatives of the Confederation were to meet the Hon'ble Prime Minister today in a delegation with Com.Basudeb Acharya, MP to seek his intervention in bringing about a settlement of the Charter of Demands . This meeting could not take place due to the preoccupation of the Hon'ble Prime Minister. The meeting is likely to take place on 22nd January, 2009.
In the wake of the notification issued by the Election Commission for the 15th Lok Sabha, the National Executive of the Confederation met on 2nd April 2009, to discuss on the stand the Central Govt. employees should take at the hustings. After detailed deliberations the National Executive adopted a Resolution calling upon the Central Government employees to vote for those candidates who support the cause of the working class. The full text of the resolution is annexed (Annexure-12/5.1.8).
On 13th September 2009, the National Executive again met primarily to decide upon the convening of the National Council meeting. It was decided to hold the National Council meeting on 4th, 5th and 6th December 2009 at New Delhi. It also proposed to present certain amendments to the Constitution for it was felt by the Committee that the said amendments are needed for a much more participative functioning of the organization. The meeting specifically discussed about he non-functioning of the negotiating forum at all levels and the continuing non-settlement of the long pending demands of Central Govt. employees.
It was also decided to call upon its members to organize programmes of action culminating on 25th November 2009 with a human chain to project the following demands adopted at the National Council. Full text of the resolution is annexed (Annexure-13/5.1.8).
5.1.9 Trade Union International – Public & Allied Employees (TUI PAE)
Confederation is affiliated to TUI-PAE, a unit of the world federation of Trade Unions. During the period under report the directive committee of the TUI-PAE met a Cyprus and again at Colombo. The TUI-PAE conference was held at Brasilia in Brazil. The Secretary General of the Confederation being a member of the directive committee of TUI attended the directive committee meetings at Cyprus and Colombo. The Conference at Brasilia had two delegates representing the Confederation. Besides the Secretary General, Com. K. Ragavendran, Secretary General of NFPE also attended the TUI-PAE conference. The State Govt. employees of India are represented by the All India State Govt. Employees Federation in the TUI. Apart from the Govt. employees organization, the Associations/Federations in the Life Insurance Corporations and General Insurance Companies, the Bank Employees including the rural bank employees participates in the TUI. The WFTU has now decided to organize a separate TUI for the financial sector. In the wake of that decision the organizations representing the Insurance and Bank employees might move out of the TUI-PAE.
Com. Sukomal Sen was elected as the General Secretary of the TUI-PAE in 1996. He was responsible for the revival of the TUI almost from a scratch. In the conference at Brasilia, he laid down the office of the Secretary General and Com. Sebastiao Soares, Director DE Comminukyako Social, NCST, Brasilia, Brazil was elected as the new Secretary General of the TUI-PAE. By virtue of an amendment to the constitution of the TUI-PAE, the post of Vice President was created for every continent. The Secretary General of the Confederation was elected the Vice President representing the Asia region of the TUI-PAE. Com. Lulamile Sotaka, first Deputy President of Nehawu in South Africa was re-elected as the President of the TUI-PAE. Com. Zia Syed of Pakistan has been elected as the Secretary Finance. The declaration adopted at the Conference held at Brasilia from 28th to 30/06/2009 is annexed to this report (Annexure-14/5.1.9).
5.1.10.8th Conference of SIGTUR
SIGTUR stands for Southern Initiative on Globalisation and for Trade Union Rights. It is organized to collectively struggle for international workers solidarity. Conceived almost two decades ago, as a response to the exploitation of workers from neo-liberal globalization it has gained momentum in its activities as more and more trade union organizations from Asian, African continent, Latin American, Australia and Pacific region have started participating in its conferences. The 8th conference of SIGTUR was held in Kochi in Kerala from 19th to 23rd April 2008. 119 delegates from 19 countries participated in the 8th International Congress. The business of the conference is normally conducted through setting up commissions participated by selected delegates on selected issues. The reports of the commissions would be presented to the Conference for proper debate and acceptance. The 8th conference selected the following issues for the commission :
1.The growth in power of global corporations.
2.The restructuring of social security.
3.Restructuring of work.
4.Working women.
5.Migrant workers.
6.Building strong local unions and the new labour internationalism
On behalf of the Confederation, besides the Secretary General, nine other delegates representing various affiliated organizations participated in the 8th Congress at SIGTUR.
5.1.11.Solidarity Actions
During the period under report, the Confederation extended solidarity support and action as and when the workers/employees go in for industrial action. The role of the Co-ordination Committees in providing support to these organizations in the form of providing leadership, financial and physical help in organizing programs plays a vital role in bringing about satisfactory settlement on safeguarding the job security of the employees. The co-ordination committees of West Bengal, Kerala, Tamil Nadu, Andhra Pradesh and to some extent Mumbai have taken up the solidarity action seriously and have provided immense help to the fighting organizations. The notable solidarity actions which was organized at All India level during the period under were :
- On 29/03/2007 when the GSI and I.B.M. employees jointly organized a days strike against privatization on rendering 2400 employees surplus. The Govt., was compelled to put on hold the decision of declaring the employees surplus on account of putsion.
- The struggle of the postal employees under the united banner of Joint Council of Action of NFPE & FNPD for setting up a judicial committee of GDS on 21/09/2007.
- Against he victimization of AG employees who fought against the decision of outsourcing some of the functions on 23/11/2007.
- In support of the striking employees of the CGHS demanding retention of patient care allowance and withdrawal of the decision of outsourcing and contractorisation of certain functions in the CGHS dispensary on 28/02/2009.
- In support of the BSNL employees on 19/05/2009 and
- Against the dismissal of Com. K.A. Manuel, General Secretary of Audit Association, Cat.II, Kerala on 15/03/2009.
It is however necessary to mention that there had not been the required intensity in organizing the solidarity program actions. The Secretariat was disappointed of the response to its decision to organize support action against the victimization spree culminating in the dismissal of General Secretary of the Kerala unit of AIAAEA. The fact that it is the united action of the employees which would be the greatest insurance against vindictiveness on the part of the bureaucracy is seldom realized. One is compelled to believe that the comparative freedom available in the two decades in organizing the employees must have been the reason for the laxity or an improper understanding of the sentiments involved. The act of dismissal of the leader of a movement was unfortunately not taken serious cognizance by the members. It is a serious matter to ponder about. While the efforts undertaken by the COC-Kerala in this regard is extremely praiseworthy, the fact that it could not or did not spread over to the length and breadth of the country with the amount of intensity required in such a situation is a matter for retrospection and corruption.
6. Task and Perspective
On behalf of the Secretariat, we may enumerate the following issues for the consideration of the National Council for it is felt that the resolution thereof isnecessary for the advancement of Central Government employees.
6.1.1Outsourcing
It has become a universal phenomenon in all departments to outsource the functions hitherto carried out by the regular employees. Situation is so centered through the imposition of ban on recruitment that all departments have a large number of vacancies at any given point of time. The deficiency in manpower with an increase in workload makes the delivery system unworkable with consequent dissatisfaction amongst the people whom the employees are supposed to serve. The inordinate delay makes the people believe that the system should require overhauling and welcome any attempt on the part of the Government to address that. This gives an opportunity to the Government to mislead the people at large attributing lethargy and inefficiency as the root cause of the malady. The fight against outsourcing to become successful, therefore requires a serious and informed campaign to bring home the real cause of the malady.
6.1.2.Downsizing,Privatization/ Corporatisation/Autonomous bodies
In an attempt to reduce the workforce to conform to the conditionalities imposed by the IMF, the government had been converting government departments as corporate or autonomous bodies. During the period under report, several such attempts were made. The testing laboratories of the food department, various functions of GSI and many other smaller segments of Survey organization were targeted for this purpose. In some cases attractive packages of increased salary, perks and other benefits were offered to eliminate any organized resitance from the unions. Wherever public opinion is against such corporatisation, such engineered non resistance on the part of the employees helps government to go ahead with its plan for pruning. The economic benefit given to the common employees makes them often take a diametrically contrary stand to the one taken by the unions. The far reaching impact of the conversion of Government departments as corporate bodies on the job security of the employees must be brought before them through sustained campaign, which is seldom attempted..
6.1.3Service Conditions
It is really necessary that we should revive our attempt to bring about serious and significant changes in the rules regulating the service conditions of government employees. The denial of right to strike is in fact the denial to collective bargaining and forming unions. The regulations in the statute book are product of colonial days' thinking and the initiative taken by the Confederation in the earlier days to bring about an overhaul of these rules got unfortunately stranded and halted in between. It is necessary for us to make a re-initiative in this regard. It would be pertinent to mention in this connection that it is only the Central Government employees who are even today denied the benefit of a holiday on the International Workers Day i.e. on 1st of May.
6.1.4. Negotiating Machinery
The Negotiating Machinery is known as JCM started in the wake of the first industrial action of the Central Government employees in the post independent era with great fanfare has been made non functionary not only at the apex level but at the departmental and regional levels also. The last National Council meeting of the JCM was held about three years back. The promulgation of the new recognition rules and the consequent verification of membership and the litigation emanated there from, had been the primary reason for shutting down of the machinery at the departmental level. This has been consciously engineered by the bureaucracy for maintaining their hegemony in the day to day administration. The Unions/Associations have been converted into non-entities in many of the departments and decisions are taken at the whims and fancies of the bureaucratic heads. Revival of the JCM with proper representation for the democratically elected leaders of the employees cannot Brook further delay.
6.1.5.. Arbitration Awards
The scheme of the negotiating machinery had envisaged a possible disagreement over certain issues. It had also created a mechanism for the resolution thereof in the form of an independent arbitration. The Board of Arbitration has a retired Supreme Court/High Court Judge as a Presiding Officer of such Board with one representative from the panel of eminent personalities given by the Staff Side and another from the Official side. In the scheme of things this was conceived to have an objective view of the matter. Until 1995 the scheme had fairly worked inasmuch as the awards given in favour of the employees after protracted procedural formalities used to be implemented. Hurt by the non-appreciation of the presiding judges of the illogical stand of the official side during the arbitration proceedings the bureaucracy began to knock at the doors of sovereignty of the Parliament to reject the awards given in favour of the Staff Side. Even though the scheme has provided for such a rejection by the Parliament it has been stipulated that such rejection should only be on the one condition that the implementation of the said awards must have an unbearable impact on the national economy. In none of the awards which are pending implementation, the executive had been in a position to place any cogent argument before the Parliament of such a dimensional impact on the national economy with the result the resolution for rejection could neither be moved nor passed. The non-implementation of these awards should be taken as a real challenge not only on the functioning of the JCM as a negotiating forum but also on the mutually agreed decent methodology of resolution of the genuine differences. It also tantamounts to denial of collective bargaining.
6.1.6 New Contributory Pension Scheme
It has to be acknowledged that the disinformation sought to be spread by the Government in the matter of pension benefits could be thwarted to a great extent by the joint and systematic campaign unleashed by the Confederation along with the All India State Government Employees Federation and the Federation of University, College & School Teachers. It must also be recognized that a vast majority of the Central Govt. employees who are beyond the pale of influence of the Confederation could also be influenced. The Govt. has however, gone ahead with the new scheme even though they could not get the parliamentary sanction. The pension fund reforms is part of the mega policy of liberalization and conceived as a measure to channelise funds into the private hands of entrepreneurs with the risk of investment being transferred to the individual subscriber sans any insurance against the vagaries of stock market. Having reached so far in convincing our members of the necessity to fight against the ill-conceived scheme it is incumbent upon us to proceed in the same direction with determination.
6.1.7. Regularisation of daily rated workers
The continuous ban on recruitment and the non-creation of post despite increase in workload created a situation in which the departmental heads had to resort to recruitment at local levels on contingent/casual/daily rated basis. The informalisation of work force is the hallmark of neo-liberal economic policies. While the private sector resort to it for maximizing profit, public sector is ordained to do so. The informal sanction has reached at its worst now inasmuch as 20 to 25 percent of the total workforce in the Governmental sector are daily rates casual workers. The recommendation of the 6th CPC in abolishing the Group-D posts is an open vista for induction of more and more contract/casual workers. Situation has been brought about in many departments where the Unions/Associations are compelled to make agreements for contracting out caretaking jobs like Security, Sweeping, etc. During the period under report though we took the decision to organize the daily rated workers, under the leadership of the Associations/Federations of regular employees little headway has been made in this regard except in the State of West Bengal. The Council must take this issue seriously to bring about a functioning entity for the causal contingent daily rated workers. The regularization of daily rated casual workers had been a constant demand from all affiliated organizations. Despite repeated discussions at the National Council on this agenda item, the Official Side did not agree to concede the demand. In the meantime a similar issue came up for consideration before the Hon'ble Supreme Court in Umarani V/s State of Karnataka. The thrust of the decisions in the Supreme Court was no doubt against the back door entry into Government service. However, taking into account the peculiar situation the Court has ordered for the regularization of all those who had completed 10 years of service irrespective of the fact that the appointment had been regular or irregular, legal or illegal. To give effect to the order of the Supreme Court, the DOPT issued order asking all the departments to regularize these casual workers who had completed 10 years of service as on the date of the judgement of the Supreme Court. As per the report received at H.Qrs quite a number of casual workers could be regularized by this order.
6.1.8.Compassionate Appointments
The stalemate created by DOPT on compassionate appointments by imposing a quantum ceiling on such appointments still remains. The very fact that no such ceiling exists for such appointments in the Railways, shows the unjustifiability of this order. There is a deliberate attempt on the part of the government to dilly-dally this issue. The National Council must seize of the matter and decide upon an appropriate course of action.
6.1.9Bonus
For the past 10 years, the Government had been procrastinating on the question of grant of bonus to the Central Govt. employees not covered by any productivity linked bonus scheme. This is despite the recommendations of the 5th CPC categorically asking the Govt. to evolve parameters for bringing about the productivity linked bonus scheme to cover most of the departmental employees. Not only the productivity linked bonus scheme was allowed to be formulated but the injustice also continued to be perpetuated pegging down the bonus entitlement to 30 days. Without a serious struggle this issue will elude settlement for many more years to come.
6.1.10 ssues relating to 6th CPC
Since the issues emanating from the 6th CPC recommendations which require resolution have been enumerated elsewhere in this report, it is sufficient to mention that the Council should deliberate upon the future course of action in pursuance of those demands include minimum wage. It is our experience that without strengthening the organisations and eliciting conscious support and participation of the grass root level workers, the possibility of resolution to these issues would be a far by. In short, it is to be emphasized that strengthening of the ogranisation capable of carrying out sustained struggle is a pre-requisite for satisfactory settlement of demands.
6.1.11The impact of the new tax code on salaried employees
This is an issue which has not been subjected to discussion in any fora of our organization for the new draft tax code was put on the website by the Government for discussion only very recently. The draft tax code envisages increased tax liability on individual tax payers especially salaried employees inasmuch as most of the deductions and exemptions granted by the extant Income Tax statute is sought to be taken away. Annexure to this report is a Memorandum we have submitted to the Government in this regard (Annexure-15/6.1.11). Giving to the predilection and prejudice of the Government against the salaried tax payers witnessed by its decision to remove the standard deduction in 2008 it would become necessary to tread agitational path alongwith the similarly placed employees in the private and public sector.
6.1.12 Accounts & Finance
It could be seen from the accounts accompanying this report that the remittance of subscription both from the affiliated organizations and the COCs had been few and far between during the period under report. In order to enable the Confederation Secretariat to function from the H.Qrs and maintain close personal contacts with the State COCs and other affiliated organisations, it is necessary that the H.Qrs is not starved of funds. It was because of the deficiency of finances, that the decision taken at the last National Council meeting to bring about a journal regularly could not be attempted. It is therefore necessary that the General Council meeting should find time to discuss this issue and commitments are elicited both from the affiliated and COCs that the subscription as per the paid up membership is remitted to the CHQ without fail. The Secretariat would like to propose for bringing about the journal initially on a quarterly basis and increase its frequency in consonance with the improvement in the financial position
6.1.13 Reports of the affiliates and State COCs.
In the deliberations that was held at the last National Council meeting held at Thiruvananthapuram, it was pointed out by many councilors that the report should contain the state of affairs of each of the affiliated organizations / state COCs. Accordingly we had solicited a one page report from each affiliated Association/Federations to indicate the important issues taken up by them during the period under report. . The write-ups so received by us have been annexed to this report (Annexure-16/6.1.13).
6.1.14 Amendments to the Constitution
As had been mentioned elsewhere in this report, the national executive has decided to bring about certain amendments to the constitution.
It is proposed to make amendment to Article 8 of the Constitution i.e. the management of the affairs of the Confederation. The National Council will be replaced by the National Conference which would thereafter be the decision making supreme body. The composition of the National Council has been sought to be changed to include the chief executives of all affiliated organizations and the Secretaries of all the State COCs. The third tier of functioning would be the national executive which shall consist of office bearers and executive committee members nominated by each of the affiliates in a specified manner. The amendment is sought to be made to streamline the functioning of the federation. Consequential amendment has to be made to Article 14 of the Constitution. Similarly composition of the National Conference has also been changed in order to ensure more number of councilors from larger organizations. The existing provisions of the constitution and the amendment proposed have been placed in a tabular form as an annexure to this report. (Annexure-17/6.1.14) the Council may consider these proposals and take appropriate decisions.
6.1.15The Central Headquarters
The Confederation does not have a permanent headquarters at New Delhi. It had been shifting from place to place and is presently functioning from the premises of ITEF(CHQ). Given the financial position of the Confederation, it is impermissible to even dream of having a permanent dwelling place for the Confederation Headquarters. However, it should be our desire that we should have our own premises to house our Headquarters in the foreseeable future.
6.1.16 The Objective
We took the policy decision in our last Council meeting that we shall be in the forefront of all struggles organized against the neo-liberal economic policies, against the forces of religious fundamentalism, caste and communal organizations and against terrorism. During this period we fought against the neo-liberal economic policies independently as also unitedly with other segments of the working people. During the last two decades since the neo-liberal economic policies ushered in lakhs of people have lost their jobs. Almost half of our population lives below the poverty line and a few of our countrymen became billionaires. During the UPA regime, we witnessed the intensification of the anti-people policies; subjugation to the imperialist forces and continuation of the discredited economic policies. During this period we had been participants in three Strike Actions, on 14th December 2006, 30th October 2007 and 20th August 2008. While the first and last were under the auspices of the Sponsoring Committee of Trade Unions, the strike on 30th October 2007 was against the pension fund reforms and for the grant of Interim Relief. The 30th October 2007 Strike Action was jointly organized by the Confederation, All India State Government Employees Federation and the Federation of University College and School Teachers. It had been an eventful period in as much as we had been engaged throughout this period with the ill-effects of the 6th CPC. We could not organize a serious Trade Union action against the highly retrograde recommendations of the 6th Pay Commission due to our sheer organizational weakness though we had made strenuous efforts in that direction. We are aware that the recommendations of the 6th CPC had been in tune with the globalization agenda. To bring about powerful resistance movement it is necessary that the level of understanding and consciousness of the rank and file of our membership must rise. We must strive our best to accomplish that stupendous task to make our organization truly militant.
On behalf of the National Executive we convey our warm greetings to all the councilors and observers attending the National Council meeting at New Delhi. We are confident that the suggestions that would be made by the participants in the Council meeting will enrich this report.
With Greetings.
Yours fraternally,
K K N Kutty,
Secretary General
