Indian unions to intensify protests against privatisation

Wednesday, 17 September 2003, 19:30 IST
Printer Print Email Email
NEW DELHI: Indian trade unions Wednesday vowed to step up protests against divestment, enthused by a court verdict barring the privatisation of two public sector oil refining majors. The unions said the Supreme Court's decision to restrain the government from going ahead with the privatisation of Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) has given a boost to the "movement" against divestment. "It's a big boost for not only unions but also workers in the public as well as private sectors," said Swadesh Deb Roy, secretary of the Centre of Indian Trade Unions (CITU), which is affiliated to the Communist Party of India-Marxist. "The Supreme Court judgement has vindicated our stand. We will see a massive change in the government mindset on the issue of privatisation of state-run companies in future," Deb Roy told IANS. In a major setback to the privatisation programme, the Supreme Court Tuesday restrained the government from selling its stake in oil refining and marketing majors HPCL and BPCL without parliamentary approval. The Centre for Public Interest Litigation and the Oil Sector Officers' Association had filed petitions in the Supreme Court challenging the government's decision to privatise HPCL and BPCL without parliamentary approval. Counsel for the petitioner had argued that the government could not resort to disinvestment of the two profit-making companies without the approval of Parliament because it had taken them over by acts of Parliament. Deb Roy said the government's move to privatise HPCL and BPCL without enacting new legislation would have been an "assault on democracy". "We are very confident that the government will not be able to get the parliamentary approval on privatisation of the two companies. All opposition parties would join hands to defeat the motion. "In light of the Supreme Court verdict we are planning to renew our protests against the privatisation drive on three fronts - people's front, workers' front and legal front," he said. "We would not shy away from approaching the court again in future if the government continues with its policy of throwing away national assets." India's privatisation drive, projected as the cornerstone of the reforms programme, has repeatedly come under attack in recent years, with unions, opposition parties and even the ruling coalition's allies demanding a review of the divestment agenda. Nearly 60 million workers across India went on a day's strike on May 21 to protest against economic reforms. They demanded a halt to privatisation and opening up of the market to foreign players. The strike was supported by all major trade unions except the Congress-affiliated Indian National Trade Union Congress (INTUC) and the Bharatiya Mazdoor Sangh, the labour wing of the ruling Bharatiya Janata Party (BJP). The country was also brought to a standstill on April 16 last year, as 10 million workers went on nationwide strike against privatisation of public sector undertakings. The Indian government reiterated its commitment to privatisation of state-owned companies in this year's economic survey, saying the divestment of public sector undertakings would have a significant impact on the country's economic growth. But analysts said opposition to privatisation would gain ground in the days ahead following the Supreme Court decision, making it impossible for the government to achieve its divestment target for the current fiscal year. The government plans to raise 132 billion in the fiscal year ending March 31, 2004, by selling its stake in public sector companies to private investors. So far, it has managed to raise a fraction of the targeted amount. Said G.L. Dhar, secretary of the All India Trade Union Congress (AITUC): "The government has always misled Parliament and the country on the issue of privatising public sector companies. "Now we will not only start protests for halting the privatisation process but will also ask the government to review past divestment cases." Dhar said the AITUC would join hands with "all other leading trade unions" to hold a national convention on September 28 to chart a roadmap for intensifying protests.
Source: IANS