The Hindu Business Line : `Union activity, a retrograde step'

THE Wipro Chairman, Mr Azim Premji, has said that union activities in the IT and BPO sectors will be a retrograde step as the issue could make overseas clients "concerned" and hamper the growth of the industry.

"BPO employees are well-paid and much in demand today. So it will be a huge challenge for union leaders to unionise them. I would assume that union leaders want to increase their territory, so they will make statements. But I do not think it will happen. If it does, it will be a retrograde step as overseas customers will get concerned," Mr Premji said at a press conference here on Sunday.

He said Wipro had a constructive relationship with unions in its traditional businesses.

"But that is the domestic business. In global business, customers entrust mission-critical operations. Unions would damage the growth of the industry ," he added.

On the Left trade unions alleging violation of labour laws by the IT and BPO companies, Mr Premji said, "Nothing is beyond the law of a country. There are certain constitutional rights. The labour modification that progressive States have adopted is to classify BPO and software as essential service, and that has so far worked well."

The BPO and IT industry has lately been in the eye of storm over labour issues.

In October, the Centre of Indian Trade Unions announced that it had deployed its cadres in Bangalore, Chandigarh, Chennai and Hyderabad to contact IT and BPO employees to establish the first nationwide union of IT workers by the end of 2006.

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