OPPOSITION STRIKES IN WEST BENGAL LEAVE GOVERNMENT

UNCLAS SECTION 01 OF 02 CALCUTTA 000445

SIPDIS

STATE FOR SA/INS AND EB
COMMERCE FOR U/S JUSTER

E.O. 12958: N/A
TAGS: PGOV EINV ECON ELAB AMGT IN
SUBJECT: OPPOSITION STRIKES IN WEST BENGAL LEAVE GOVERNMENT
RED-FACED

REF: A) NEW DELHI 007211


1. SUMMARY: In the coming three weeks, starting on November
17, West Bengal will witness three general strikes planned by
different political parties protesting the recent hike in
petroleum prices by the central government. West Bengal's Left
Front government, eager to establish its business-friendly
image, is not supporting these actions, but nor has it
energetically and vociferously opposed them, probably due to its
own extensive past use of this tactic. However, until the
culture of protest declines in West Bengal this will remain a
hindrance to productivity and a disincentive for investors. END
SUMMARY.


2. Three political groups in West Bengal have seized the issue
of energy price hikes to grasp the spotlight on the state's
political stage. The result: Three days of likely disruption
of civic life. The political groups come from across the
ideological spectrum, but all are opposed to West Bengal's
ruling Left Front Government. These actions have nothing to do
with how difficult social and economic choices are made in the
face of rising global oil prices and everything to do with
seizing a political issue that may inspire populist support.
The Socialist Unity Center of India (SUCI),a regional party, is
organizing the first general strike - bandh in local parlance --
on November 17. The SUCI -- not part of West Bengal's ruling
Left Front -- has organized movements against the state and
central governments in the past.


3. The second general strike, organized by the ultra-Left
Communist Party of India (Marxist-Leninist) [CPI-ML], will
follow on November 22. Finally, West Bengal's main opposition
party, the centrist Trinamul Congress (TMC),is organizing the
third bandh on December 3. TMC officials privately admit there
had been some dissension within the party -- between TMC-backed
elected representatives and its party managers -- over whether
they should add their voices to this chorus of protest, but the
bandh supporters eventually carried the day.


4. West Bengal has a long history of organizing strikes. All
political parties have used these as a weapon of mass political
action that leads to the loss of working days and substantial
economic losses. Ironically, it is the CPM - the dominant Left
Front member - that has the worst track record in organizing
strikes, whether in government or out of it. By backing violent
and disruptive political action - either on its own or through
its affiliated labor organizations - the CPM is itself largely
responsible for the image of delinquency that West Bengal has
acquired in India's corporate and administrative circles.


5. No matter who organizes them, the legacy of general strikes
is now hurting West Bengal's economy and the Left Front
government has recognized this. Chief Minister Buddhadeb
Bhattacharjee and his team are eager to attract domestic and
foreign investment to pull the state out of three decades of
industrial decline. The state government has just started to
attract large IT companies to Calcutta. In an effort to have
the bandhs disrupt as little as possible, the West Bengal
political and administrative leadership are taking modest
actions to ensure that Calcutta is not overly affected by the
strikes. For the IT industry, with call centers reliant on
24-hour coverage, there is supposed to be an amnesty as it has
been declared an "essential service." For government
employees, the Calcutta High Court has directed that the state
government deduct a day's pay if its employees do not report for
duty on the day of the strike without a satisfactory reason.
The state government will risk contempt of court if it tries to
soft-pedal anti-strike measures. Nonetheless, the government
has not spoken out clearly and loudly against this tactic and,
in the past at least, it has not used the police to prevent
coercive action by the strikers.


6. Media surveys over the past two days have revealed that
Calcutta's citizens are not in favor of losing three working
days in a span of three weeks. But such surveys also indicate
that people are frightened of the possibility of violence and
that factor, more than any support of the cause, may force many
to stay indoors. The reality of past violent action to enforce
work stoppages, although rare in recent times, makes this a
reasonable fear.


7. For our part, the U.S. Consulate will remain open for
business during all three bandhs. Employees are strongly
encouraged to come to work, but those who fear for their
personal safety are granted permission to stay at home. They
will be charged for a day of annual leave in that case.


8. COMMENT: The West Bengal Government is trying hard to sell
Calcutta as a preferred investment destination, especially for
information technology. In our discussions with the state
government - most recently during Commerce Under Secretary
Kenneth Juster's visit -- we have encouraged the Left Front to
dissociate itself from the politics of disruption so as to win
investor confidence and build a business-friendly image. We
have pointed out that West Bengal is in a global competition for
capital and that investors will be put off by the lost
productivity inherent in the state's culture of protest. There
are clearly signs that the state government is attempting to
maintain a degree of normalcy on these occasions, but a more
robust effort is needed to assuage investors' concerns.
Otherwise, West Bengal and its rulers will continue to be
saddled with image problems of their own making. END COMMENT.

SIBLEY