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Saturday, August 31, 2013


The Policies that failed
               In the year 1991 when the New Economic Policy or the Neo-liberal Economic Policy was adopted by the then Narasimha Rao Government at the Centre with much fanfare, it was repeatedly declared that it is a panacea for all the crisis faced by the Indian economy and shall ensure rapid growth of Gross Domestic Product (GDP).  After 22 years, it is the very same neo-liberal policies which is leading the country to an economic disaster.  The then Finance Minister Sri. Manmohan Singh had brush aside the criticism and opposition of left parties and trade unions and they became a target of concentrated attack by the supporters of the neo-liberal policies.  Inspite of stiff resistance from all trade unions the Government went ahead with the rigourous implementation of the anti-people, anti-labour policies of Liberalisation, Privatisation and Globalisation  (LPG).
                While the UPA Government desperately wooed foreign capital and handed out concessions to big business and corporates, the plight of the people has been worsening because of the economic slowdown, falling industrial production and high inflation.  The rupee has steadily depreciated in value, with the exchange rate of the rupee to the dollar breaching the Rs.68 mark last week.  The current account deficit (the gap between exports and imports and other remittances) has reached an unsustainable level, there is rising external debt with the bourgeoning short-term debt, posing immediate problem.  This financial crisis is accompanied by high inflation.  The fact that the creation of two India’s of the rich and the poor, with the gap between them widening alarmingly, is a reality that stares us every moment.
                The first UPA Government was not allowed to implement the reforms in the financial sector, pension sector and retail sector etc. by the left parties who supported the Government.  It prevented the passing of PFRDA Bill by threatening to withdraw support to the Government.  The second UPA Government without the left support, started rigourous implementation of the reforms in all sectors.  All barriers for the inflow of foreign capital to the country was removed and the cap of Foreign Direct investment (FDI) in banking, insurance, pension, retail, defence, telecom etc. are either enhanced or removed.  Large scale disinvestment of public sector has become the order of the day.  Deregulation of petrol pricing has resulted in everincreasing prices of petrol and diesel fuelling inflation which resulted in the increased burden of price rise for the people.  Onions,vegetables and all other necessities of life are becoming out of reach of the people.  The other outcome of the economic slowdown is the loss of jobs in the industrial and services sectors and rising unemployment.
                The UPA Government is seeking to overcome this crisis by attracting more foreign capital and giving more concessions to the multinational companies (MNCs) and Indian big business.  The growing dependence on foreign capital flows and FDI has worsened the situation further and the entire exercise has proved futile.  The bulk of the capital flows out of the country is from equity, debt markets and Foreign Institutional Investments (FIIs), which the Government cannot control.  The neo-liberal policies of the Manmohan Singh Government and the boosting of the economy through Foreign Capital inflows have now come to roost. 
                During the last three years at least, the tax concessions provided to the corporartes and the rich amount to, according to budget papers, to over five lakhs crores every year.  Despite such “incentives”, the overall growth of the industrial production was minus 1.6 per cent in May 2013.  If, instead, these legitimate taxes were collected and used for public investments to build over much needed infrastructure, this would have generated large-scale employment.  This, inturn, would increase the purchasing power of the people and vastly enlarge domestic demand.  This would lay the basis for a turn around in manufacturing and industrial production and put the economy on a more sustainable and relatively pro-people growth tragectory. 
                What the country needs is an alternative pro-people policies.  Such an alternative can be brought about through the intensification of popular struggle of the people and working class in the coming months.


Circular No. 3/2013                                                                                                  Dated – 29.08.2013


All CHQ office Bearers, Confederation
All General Secretaries C-O-Cs
All General Secretaries/Secretary Generals of affiliated Unions

Dear Comrade,

1.    Agenda of the next National Council JCM has been finalized on 27.08.2013 in consultation with DOP&T. Twelve demands raised by the Confederation in the Charter of demands are included (including the GDS employees demand). The letter given by Com. Umraomal Purohit, Secretary, Staff Side, JCM National Council and twelve demands included in the agenda are enclosed herewith. (Annexure I & II) Next meeting of the National Council JCM is expected by the end of October 2013/early November 2013.

2.    The controversial PFRDA bill is listed as an agenda items of the current Parliament session. National Secretariat of the Confederation has given a call for two-hours walk out and protest demonstrations when the bill is taken up for discussion in Parliament or on the next day if information is received late.

As already mentioned in the previous circular the following campaign programmes shall be implemented in all states demanding realisation of the 15 Point Charter.
          (a)   Mass Relay Dharna at all important places and State/District Head Quarters from 2nd to 7th September 2013.
          (b)   Holding of state conventions of C-O-Cs and Central Working Commitees/Central Executive Committees of all               affiliated Unions/Associations/Federations.
          (c)    Strike ballot from 25th to 27th September 2013.

A copy of the appeal for strike ballot and model ballot is enclosed herewith (Annexure III & IV). It may be translated into local languages. Each official should be given an appeal well in advance so that they can take an independent decision before the polling dates. 15 Point Charter may be permitted in the appeal.

On the polling day (25th, 26th & 27th September 2013) ballot boxes should be placed at the premises of offices or at a centralized place (polling booths) as per convenience. Employees may be allowed to vote freely and frankly by ticking “Yes” or “No” in the ballot. It will be a secret ballot. After ticking “Yes” or “No”, the ballot may be put in the ballot box. After polling is over leaders shall count the ballot.
The ballots in favour of indefinite strike (Yes) and against indefinite strike (No) may be counted separately and total figure arrived at may be communicated by the respective C-O-Cs or organizations as the case may be, to the Confederation Head quarters by e-mail or SMS.

Before the poling date intensive campaign should be conducted by all C-O-Cs and affiliates at all places and each and every employee may be contacted and requested to cast his/her vote.

4.      All India Trade Union Education Camp:
The Trade Union Education Camp will be held at Mumbai on 15th & 16th November 2013. The number of delegates to be participated from each C-O-C and affiliated Unions / Associations / Federations will be intimated before September 1st Week. The camp is being hosted by C-O-C Mumbai. Delegate fee is Rs. 600/- per head. NFPE, ITEF, Audit & Accounts Associations and Atomic Energy delegates shall be arranged accommodation by their respective Federations.

5.      All India Women’s Convention
The All India Women’s Convention of the Confederation will be held at New Delhi on 25th & 26th November 2013. Lady Delegates from all C-O-Cs and affiliated Unions/Associations/Federations should participate in the Convention. Number of women delegates to be participated from each C-O-C and affiliated Unions/Associations/Federations will be intimated by first week of September 2013. The Convention is being hosted by C-O-C Delhi. Delegate fee is Rs. 600/- per head.

6.      Formation of C-O-Cs at State and District level
As we are heading towards an indefinite strike, we have to gear up our organsiational machinery at all levels. Wherever state level C-O-Cs are defunct or ineffective it should be revived immediately. Where ever District Committee is not formed the major affiliates should take immediate action for preparing their rank and file for the indefinite strike. Circulars, bulletins, posters, boards, banners etc. may be issued and circulated widely among the employees. Don’t wait for the last Minute, Be prepared well in advance.

       Fraternally yours,
       (M. Krishnan)
      Secretary General