The Hindu Business Line : Trade unions setting their sights on IT sector

IT is the sunrise sector. Not just for wannabe entrepreneurs, but for trade unions too. At the recently concluded national conference of Centre of Indian Trade Unions (CITU) in Chennai, trade union leaders have identified information technology, electronics and communication sectors as areas where they need to foray and expand their operations.

Mr A.K. Padmanabhan, National Secretary, CITU, said, "Employment numbers are coming down in the traditional industries such as textiles, engineering and heavy industry. We have to look at other areas to expand. We have identified the conditions prevailing among the lower level workers in many small companies in the IT/BPO areas as bordering on anarchy. The conditions are worse than the exploitation seen in villages."

Asked to elaborate, Mr Padmanabhan said that there is a high degree of violation of labour laws in such units. He said, "The 8-hour work day is not observed. The hire and fire policy is rampant. For many workers, even an appointment order is not available. Often only an identity card is issued. There is a feeling of insecurity and humiliation among lower level workers. And sexual harassment also exists."

Mr A. Soundararajan, General Secretary, Tamil Nadu State Committee of CITU, said, "We can feel the temperature is increasing. We are waiting for a nucleus to form before issuing the clarion call." He expects to see the workers from the IT sector constituting the largest segment of his organisation's membership in about three years' time. At present, CITU has a membership of 3 lakh in Tamil Nadu. He said there are at least 2 lakh workers in the IT sector in Chennai alone. Barring the top 20 per cent, he added the rest are potential members. The lack of unionism in the IT industry has been attributed by many as one of the catalysts for the premier status that it currently enjoys across the world. Will that now change?

Mr V. Shankar Narayana, Senior Manager, HR, NIIT, said, "If unions come in, it will do more harm than good. It will be too big a paradigm shift. The current business model which is predicated on timely ramp-up of manpower (getting projects and then getting people quickly to handle them) will go for a toss."

He said, "Employees in this industry have not needed protection in the conventional sense - because there are enough jobs for the taking. The question has always been one of attrition - stopping people from going away."

And as for the over-8 hour work days in the sector, he added, "The labour laws that apply in the manufacturing sector may not necessarily be relevant here. With an air-conditioned environment, 24 hour cafeterias, channel music playing, recreational facilities in office complexes and the like, employees are happier working longer hours."

According to a HR manager, working for a multinational, "We have often gone beyond what is required by labour laws. We are very sensitive to employee concerns. Stock options were introduced in the IT sector first. The surveys on best employers have risen after the IT boom. We have introduced best HR practices and creative incentive packages. We have introduced paternity leave, bereavement leave, etc. There is a detailed code of conduct. We provide employees with forums to continuously give feedback. So employees have not felt the need for a separate vehicle like an union to ventilate grievances."

Whether the entry of unionism will ruin the industry, Mr Padmanabhan and Mr Soundararajan said, "Organised labour has never come in the way of the development of any industry. All that we are asking for is regulation and enforcement of rules — something similar to traffic signals. Otherwise unbridled actions will only result in chaos."

The debate may continue. But it may soon be time for HR managers to start dusting the chapters on collective bargaining and brushing up their negotiating skills.

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