People's Democracy

Why Formation Of TUs In IT Sector?

M K Pandhe

SINCE the announcement of the CITU’s decision to form unions in the IT sector, most of the leading dailies in the country are up in arms against the CITU. They are writing in the most virulent language that this decision would be resulting in IT sector managements refusing to invest in this emerging sector and available jobs are likely to be shifted to some other countries. They have raised a hue and cry that the CITU decision would generate great industrial disturbance in the IT sector, which would jeopardise the growth of this crucial sector in the country.

The IT sector managements have also come out openly against formation of unions in this sector. They claim that conditions are far better in this industry and employees are extremely happy and are not interested in forming unions. They have even charged the CITU of trying to put obstacles in the nation’s economic development. It has therefore become necessary to clarify CITU’s position on this subject.

GROWING EMPLOYMENT

According to observers, nearly 10 lakh employees are working in the industry and the number is likely to be increased to 20 lakhs in the next three years. The employers in Europe and America are finding it most economical to outsource part of their work to developing countries since the wages of the workers are less than one-tenth of those in advanced countries. The spectacular advances made in information technology, which makes transfer of data to faraway places most convenient through satellite, is helping the process of outsourcing the data processing business to other countries.

The CITU has never opposed the development of IT sector in India since it provides job opportunities to a section of our educated unemployed youth. It has also helped in development of some ancillary jobs. When unemployment in the country is growing rapidly, any step towards job creation is welcome. It also swells the ranks of the working class.

The IT sector is not a homogenous sector. There are thousands of call centres emerging all over the country, many of whom are doing ordinary jobs allotted to them by various industrial houses. There are many units who are doing the work in development of sophisticated software. There are also some units which do the work of mere data processing allotted to them by both Indian and foreign companies who have outsourced their jobs.

Working and living conditions in the IT sector vary from unit to unit and there is no uniformity. Several state governments are vying with each other to give concessions to IT sector industry in order to attract them to invest in their states.

Non-implementation of the labour laws is one of the concessions being offered to them by various state governments, as a result of which not a single dispute is recorded in the IT sector in any state. The government of India is also quietly conniving at the non-implementation of the labour laws on the plea of attracting investment. Several foreign companies have commenced establishment of IT sector units in India since they find business most profitable here. 

VIOLATION OF LABOUR LAWS

However, the CITU is extremely concerned with the working conditions prevailing in this industry and as a premier trade union it has to focus the attention of the country to the problems faced by the workers in this industry. The CITU has taken up the matter with union labour ministry about the situation prevailing in this industry. The reports received by the CITU centre from various sources, including the employees working in the IT sector, have highlighted the following aspects of the present situation in the IT sector:

1. The IT sector units are working for twenty four hours, but there are only two shifts working, with the result that minimum hours of working have become 12 or at times even 14. As per statutory provision in the country, after eight hours work the workers should be paid double the rate of wages as overtime. However, these units blatantly violate this provision and there is no action against the managements.

2. Several managements of IT sector do not give appointment letter to the employees so that they can remove them from service without assigning any reason. It is admitted that the rate of attrition in certain areas of the IT sector is nearly 50 per cent, which substantiates this fact.

3. It is pointed out by studies conducted by WTO and ILO that continuous work on computer affects the eyes of workers due to emission of cathode rays from the digital screen. Many employees have reported temporary colour blindness after long hours of work on the computer. In Australia, the trade unions have insisted half an hour rest for a worker after two hours of work on the computer. In some countries, TUs do not permit pregnant women to work on computer since it affects the foetus adversely.

4. Majority of the workers in the IT sector are women. Cases of molestation, sexual harassment and even rape are reported to CITU by the women workers. They do not report to the authorities for fear of loss of jobs and loss of “reputation”. The government of Haryana had to prohibit night shift work for women in 2 units in the state for lack of adequate protection. A recent study published in Outlook magazine has pointed out some glaring developments in relationships in the IT sector in India.

5. A total absence of grievance reddressal mechanism in the IT sector is extremely harrowing for the employees. One complaint received by the CITU centre from a double graduate employee who stated that he was asked not to report for duty from the next day for a mere crime that he demanded equal pay that was paid to his nearby colleague having same qualification. Any reporting of discrimination in working conditions results in summary dismissal from service. There is absence of practice of managements issuing chargesheet or holding domestic enquiry with the employee having the right to defend himself. Any attempt to form a union is received by handing out of exemplary punishment of termination of service. It is not true that employees do not want to form the union but employees are not allowed to form a union.

6. Some doctors from Bangalore have reported in a seminar that due to excessive work on computer continuously, an occupational disease known as “stress on brain” is caused to several workers which is responsible for tension in the mind of a worker. However, this is not yet recognised as an occupational hazard and proper treatment is denied to workers. Reduction in hours of work will perhaps reduce the incidence of such cases.

7. A son of one of the CITU activist who is working in an IT sector unit as chief accountant, took some interest to find out the profitability in the IT sector unit. He studied the cost of implementing a project valued at about Rs 10 crores. Since he had access to all the financial transactions, he found that the cost of salaries, computers, electricity, home rent, stationary taxes, and other operational expenses worked out to be only Rs 2.5 crore. The employer in the IT sector thus made a net profit of Rs 7.5 crores! It is not surprising that Azim Premji, who was not much known 15 years ago, has now accumulated assets of over Rs 50,000 crore. There are many other IT sector industrialists in India who are prominent in the billionaires list. Their profits would not come down substantially if they introduce 8 hour shift and implement all the labour laws of the country!

8. There is a serious misconception that the IT sector workers are highly paid. The software engineers who can prepare programming and other software are no doubt better paid, some of them earning even Rs 1 lakh per month. However the employees who directly work on computer are paid only a consolidated wage. They are not given annual increment, dearness allowance linked with price index, leave facilities, LTC, HRA etc. The payment of salary is extremely low in call centres. The workers do not get retrenchment compensation nor retirement benefits which are available to many workers in the organised sector. The CITU has received complaints that many IT sector managements do not even give pay slips to employees.

NO JOB SECURITY

The IT sector workers are not aware of any job security. They have to face periodic bouts of unemployment without any source of livelihood. They have to change from one unit to the other depending on availability of jobs. The concept of labour market flexibility or fixed term employment is curtly being made applicable to these employees. The psychological impact on these employees and their families has not been properly studied so far. When it is done, it will throw good light on the depredations faced by these employees and their family members.

As a result of repeated efforts made by CITU to ameliorate the working and living conditions of the IT sector employees, the National Labour Institute (NLI), functioning under the union ministry of labour, has conducted a study of the conditions prevailing in the IT sector. It is a matter of great satisfaction for the CITU that the independent survey conducted by the government organisation has thrown light on the shocking conditions prevalent in the IT sector industry.

The NLI survey points out the low salary level of the workers working in call centres and other IT sector units. It further observed that if any mistake is committed in data processing, the whole day’s salary is deducted by some IT managements. In some units sufficient time is not given for employees to have lunch, tea or even to attend to calls of nature! The NLI survey has compared the working conditions in IT sector comparable with Nineteenth century prisons. In another observation, the NLI study has noted that the conditions in some of the units are comparable with Roman slave ships. Even if these observations are considered as exaggeration, it depicts the state of affairs prevalent in the IT sector industry today.

Under these circumstances, formation of unions in the industry is the only way to improve the working and living conditions of the IT sector employees. Whenever attempts have been made in the past, the managements have mercilessly thrown out of jobs the leaders who tried to form union or tried to ventilate the grievances of the fellow employees. Therefore unions will have to be formed carefully without disclosing the names of members. If IT sector managements think that they would be able to prevent formation of unions for a long time, they are greatly mistaken.

A CITU delegation met the union labour secretary recently and discussed with him the present situation in this industry. Even he also admitted that the labour laws are not being implemented in this sector though in principle the sector is covered by labour legislation. He agreed that the IT sector cannot be considered as essential service as in the case of water supply, milk supply, and electricity supply. 

NEED FOR A COMPREHENSIVE LAW

The CITU has demanded that the central government should prepare a comprehensive bill to govern the working and living conditions of the IT sector employees so that they are not exploited by the managements. In the countries which outsource jobs to India, the IT sector employees are covered by their national labour laws. They have the right to collective bargaining and right to strike. Hence there is no justification for not giving the same rights to the Indian workers in this sector.

Genuine employers who are prepared to ensure decent working conditions for their employees need not be afraid of the formation of unions in the IT sector. What trade unions want is only implementation of the rules and regulations prevalent in the country today. Only those who are opposed to giving a fair deal to the workers are clamouring against formation of unions in the IT sector.

The CITU is determined to pursue the improvement in the working conditions of the vast multitude of employees in the IT sector and press for a central legislation to govern their working conditions.