LAUNCH OF AN IT WORKERS UNION BRINGS OUT THE SPLIT IN THE

UNCLAS SECTION 01 OF 02 CALCUTTA 000525 SIPDIS SIPDIS DEPT PLS PASS USTR E.O. 12958: N/A TAGS: ECON EIND ELAB ETRD IN SUBJECT: LAUNCH OF AN IT WORKERS UNION BRINGS OUT THE SPLIT IN THE CPM ¶1. SUMMARY: On November 14, IT workers formed West Bengal's (WB) first IT workers union. Its creation has exposed fault lines within the Communist Party of India - Marxist (CPM) and the Left over the role of labor and industrialization. The reforms-oriented Chief Minister Buddhadeb Bhattacharjee and some in the CPM are clearly not in favor of militant industrial action in the IT sector, a rapidly growing sector in West Bengal. The CPM and its allies were planning a national general strike for December 14 to protest UPA policies but Bhattacharjee had hoped that the IT sector would be insulated from the disruption. The upcoming general strike will be the litmus test for whether the pro-reform faction can shelter this nascent industry from economically damaging labor movements. Worried IT industry leaders have been lobbying the administration and political leadership. The developing battle within the Left over the unionization of the IT sector will determine whether the reformers or hard-line Marxists control the state's economic policies. End Summary. ¶2. On November 14, the West Bengal Information Technology Services Association (WBITSA) became the first IT workers' union in West Bengal - and in India. The WBITSA is expected to represent 40,000 IT workers in West Bengal's IT sector. WBITSA is affiliated with the Center for Indian Trade Union (CITU) -- the labor wing of the CPM. WBITSA's creation has exposed divisions in the CPM on the party's approach to industrialization. The pro-reform faction, led by Chief Minister Buddhadeb Bhattacharjee, argues that any move perceived as going against corporate interests will scare the investors away from West Bengal, which is showing signs of industrial growth after falling behind other states. In contrast, the CITU leadership believes that working conditions and contracts in Kolkata's IT companies go against existing industrial guidelines and laws. Hence, workers need to be organized to improve conditions. ¶3. CITU and other elements of WB's Left Front government had called for a general strike throughout India on December 14 to protest the policies of the ruling United Progressive Alliance (UPA). Because Kolkata's IT sector is considered a shining example of West Bengal's industrial revival under Marxist rule, the question of IT companies staying open during the strike has become a contentious issue. Most of these IT companies have overseas clients and any disruption in operations would result in significant losses. In the recent past, the CPM-led West Bengal government had to deploy police to ensure continued operation of IT companies during general strikes. CM Bhattacharjee and CPM Politburo member Sitaram Yechury favor declaring the IT sector an "essential service" comparable to electricity, health and municipal services, in order to permit IT companies to remain operational during the strike. CITU hardliners like M.K. Pandhe and Chittabrata Mazumdar have opposed this designation. ¶4. Significantly, the state unit of CITU, led by the pro-reform leader Shyamal Chakrabarty has not committed WBITSA to participation in the all-India strike. While inaugurating the union, Chakrabarty explained that workers forming unions does not necessarily imply disrupting work. Workers no longer go on strike in West Bengal except in jute and tea industries, Chakrabarty added. Although hard-line labor leaders like Subhash Chakrabarty (no relation) have been vocal about unionizing IT workers, the pro-labor rhetoric was considerably toned down during WBITSA's inauguration. Contacts told post that WBITSA in all probability will be a "docile" organization to appease the hard-liners. It was apparently put in place in a hurry to preempt a move by the Congress-backed Indian National Trade Union Congress (INTUC) to enroll workers in its organization. The INTUC had recently launched a drive to enlist call center workers and outsourced contract staff like couriers, security services, motor pool workers. ¶5. Kolkata's IT managers, for their part, are concerned about the effects of unionization on development. Leading IT companies have formed an informal group (Salt Lake Rajarhat Committee) and have met West Bengal's IT minister to argue their case against the move to form unions. One CEO told post that the move may be portentous for West Bengal's IT sector, CALCUTTA 00000525 002 OF 002 especially as the outsourcing segment was going through a boom. "The Minister told us not to worry as the development is not too serious at the moment," he said. The Bengal Chamber of Commerce has met the state administration on behalf of the IT companies and also expressed the industry's concern. ¶6. COMMENT: While WBITSA's formation may have been inevitable given WB's long history of pro-labor movements, many in the Left are now projecting a pro-corporate image to attract investment to the state. The CPM's task is to demonstrate that the party has left behind its days of confrontational labor movements. Labeling the IT sector an essential service may solve the December 14 strike problem, but it skirts the real issue: which faction within the CPM will influence future economic policy - the reformers or hard-line Marxists? END COMMENT. JARDINE