Reborn labour pangs: Police vs agitating HMSI workers in Gurgaon

The AITUC (All India Trade Union Congress) headquarters at 24 Canning Lane in the Capital is abuzz with activity these days. Comrades queue up outside the office of Gurudas Dasgupta, General Secretary of the trade union and senior CPI leader. There is renewed hope that a Marxist utopia might yet emerge out of the present era of unashamed capitalism.

Over the last three months, half-a-dozen instances of labour unrest in the bustling Gurgaon-Manesar-Dharuhera belt have caught the attention of corporate honchos in India and abroad. All of them have been instigated by Left-affiliated trade unions, which are aggressively trying to spread their wings to North India. Their target: the contract workforce across the new industrial zones in the Gurgaon-Manesar-Dharuhera belt. AITUC, CITU (Centre for Indian Trade Unions) and even INTUC (Indian National Trade Union Congress) leaders are holding regular meetings there, urging workers to "fight for their rights". Says Dasgupta: "There will be a labour movement across the country (see interview)".

But this activism is causing unease in the corridors of India Inc. "Our collaborators have been calling from Japan to know about the incident in Gurgaon," says A.K. Taneja, President, Shriram Pistons and Rings. "The unfortunate episode has created ripples beyond India's shores," he adds. "The Gurgaon-Manesar-Dharuhera belt has been extremely peaceful. We've been there for 22 years and have never faced anything of this kind," says Ravi Sud, VP (Finance), Hero Honda Motors. Its ancillaries, Autofit and Speedomax (a subsidiary of Omax Auto) in Dharuhera, though, faced labour unrest in May and June. "The labour unrest here seems to be part of a larger trend," says Deep Kapuria, President of Automobile Component Manufacturers Association and Chairman of Hi-Tech Gears, which supplies gear assemblies to manufacturers like Hero Honda, HMSI, Yamaha and Cummins.

"Outsiders (read: Left TUS) are causing these labour problems," says the MD of a leading auto components firm. "These activists are organising meetings and inciting our workforce," he adds. This gentleman spoke on condition of anonymity as the Leftists have still not targeted his company. "If they read my statements, they will take their wrath out on me," he adds. Japanese envoy Yasukuni Enoki has gone on record expressing concern that the Gurgaon incident could affect the inflow of foreign direct investment into India.

"The developed world often uses labour practices as a non-tariff barrier and Indian industry is sensitive to this," says Kapuria, adding: "History tells us that once you get branded for militancy, it is difficult to attract investment." West Bengal is a classic example of that. Dasgupta and his comrades are trying to replicate their 'Project Bengal' in the rest of the country. But the government seems alive to the problem. In the aftermath of the Gurgaon violence, Prime Minister Manmohan Singh told a delegation of Left leaders that foreign investors should not be made captive to labour demands. "This can create an impression that India is an uncertain place to invest in," agencies quoted him as saying. Singh's message to the comrades: avoid militancy and production losses. But he has only so much room to manoeuvre, given that his government is critically dependent on Left support for survival. Despite promises of good behaviour, the Left is unlikely to give up the opportunity of expanding its base outside its traditional bastions. And the only path it knows is that of agitations.

"All the new industrial belts-Noida, Greater Noida, Okhla and Gurgaon in the National Capital Region and the special economic zones in Maharashtra, Gujarat, Karnataka and Madhya Pradesh-are witnessing instances of labour unrest because most companies here are outsourcing their workforce," says Amarjeet Kaur, Secretary, AITUC. The Left has another, bigger grouse. "Look at the huge first quarter profits that large companies have reported," says Brinda Karat, member of CPI(M) Politburo. "These are never passed on to workers."

INTERVIEW: GURUDAS DASGUPTA "I am not anti-MNC"

Senior communist party of India leader Gurudas Dasgupta needs little introduction. A feisty trade unionist, he has used his newfound influence to stymie the government's reforms agenda. Dasgupta spoke to BT's Swati Prasad on the rising trade unionism across the country. Trade unions are flexing their muscles across the country. Why? Agitations are taking place in response to atrocities being committed by the owners of companies. Are you anti-MNC? I'm not anti-MNC. But we will not accept the labour reforms that the Central government is advocating. And we will not accept a hire-and-fire policy. But can't companies take disciplinary action against workers? For instance, in the case of HMSI, the company had to take back dismissed workers. Won't this set a bad precedent? I don't accept your stand. The HMSI management had taken unilateral steps (with regard to the dismissal and suspension of workers). But is there place for aggressive trade unionism in an India that is going global? Most companies, especially in the Gurgaon-Manesar belt, today prefer to hire contract labourers. Even contract labourers should have unions. We have called an all-India bandh on September 29. There are unions in Gurgaon that will participate, including those formed by contract labourers. What will all this lead to? More agitations? There will be a movement across the country. And what happens to our economic growth rate if workers decide to hold bandhs and strikes? What about FDI? That is an oversimplification on your part. One or two days of bandh will not affect the growth rate. We want trade unions to be part of the growth process. We are against the high-handedness of managements. And we don't want this kind of a one-sided attack by MNCs on workers rights.

It was the trouble at Honda Motorcycle and Scooter India that focused public attention to the rising trade union activism. The problem arose when a handful of workers wanted to form a union and the management allegedly tried to stop them from doing so. The simmering discontent came to a boil when four workers were dismissed and 25 others were suspended. It culminated in a brutal police lathicharge on the workforce (and some outsiders) on July 25. Under pressure from Congress President Sonia Gandhi, Haryana Chief Minister Bhupinder Singh Hooda brokered an agreement between the workers and the HMSI management, under which the latter had to take back all dismissed and suspended workers.

"The HMSI incident has disturbed the Japanese psyche," feels Taneja. "They're wondering: should we be in India or not? and, can India be a reliable outsourcing hub?" he adds. According to Kapuria, one of the reasons why total quality management (TQM) has taken root in India is that Japanese MNCs followed the cluster approach to building their vendor bases here. The downside of this approach becomes evident during labour agitations. "That's because problems at one company tend to affect the entire cluster. These clusters are a fertile breeding ground for divisive political elements who use militancy to build a political base," adds Kapuria. "Even before the new labour laws-which we are opposing-have been enforced, companies, especially mncs, have begun to practice hire and fire policies," counters Kaur of AITUC. But the honchos of India Inc. think quite differently. "If firing is not easy, hiring will not happen," says Taneja.

THE RED WISHLIST

CPI(M)'s Karat: Wants companies to pass off profits to workers » Comprehensive legislation for the unorganised workforce in the country (the Unorganised Sector Workers' Bill). Around 93 per cent of the total workforce in the country is employed in the unorganised sector » Employment Guarantee Act: The Left parties have been demanding a legal guarantee of employment for anyone who is willing to do casual manual labour at the statutory minimum wage. Any adult who applies for work under the Act is entitled to being employed on public works within 15 days » All contract workers in private Indian companies and MNCs should be unionised » No disinvestment in PSUs » Increase investment in traditional and cooperative sectors that employ more people » Provide social security to workers in special economic zones and new industrial belts

But despite these developments, life carries on at most companies. When the Leftist trade unions called a Gurgaon bandh on July 28, companies there had to take extraordinary measures, like asking their employees to come in two hours before the normal morning shift. The bandh failed but it hasn't dampened the Left. "One or two days of bandhs will not affect the country's growth rate," says Dasgupta.

India is at an inflection point. It has achieved the critical mass required for its economy to take off. Suddenly, another imponderable has been thrown into the equation. How the government tackles its friends on the Left will be crucial to the country's growth story.

-aditional reporting by Rahul Sachitanand