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22 February, 2012
Some 25 trade union representatives from Indian states Maharashtra, Gujarat and Karnataka met at an ICEM workshop entitled “International Labour Standards and Social Dialoguein Indian Chemical Industry,” which took place on 15-16 February in Mumbai. The participants represented different chemical companies, including BASF (Mangalore and Thurbe plants), Rhodia, Reliance, 20-Microns, Shankar Packaging, FAG Bearing, NRC, Calchem, BEC Chemical and Danashmand and the ICEM workshop brought together different unions and national centers.
Since 1990s, India has seen phenomenal economic progress with average 8% yearly GDP growth. This has made India 12th in the global chemical world and third-ranking in Asia. The chemical sector makes up 7% of India’s GDP and 14% of total exports. The country also has emerging multinationals such as Reliance, Tata, Gujarat Chemicals, Biocon and Ranbaxyies.
The Indian trade union movement, including chemical industry unions, face serious challenges such as declining union membership, shifts to unorganized and informal sectors, union multiplicity, low union density and weak finances. Indian union leaders inside the chemical industry say low wages and very long working hours are major problems.
Contract and Agency Labour was defined as another major matter because chemical companies are using this social dumping practice widely. Workers employed in such regressive contracts generally get paid much less than workers directly employed with the primary employer.
The meeting analyzed recent trends in the chemical industry through ICEM’s viewpoint via its Director of Industry and Corporate Affairs, Kemal Özkan, who provided wide information on employment characteristics in the sector. International labour instruments were also on the programme within the context of ICEM’s Multinational Companies and Social Dialogue Project, coordinated by Yoon Hyowon.
Ghosalkar Ravindra Govind, President of ICEM affiliate Chemical Mazdoor Federation (CMFI), stressed the importance of international cooperation for developing union work in India’s chemical industry. “At a time when our chemical industry grows, we must take all efforts to advance our members through the global support of ICEM,” said the CMFI President.
The participants discussed a road map for the future with special attention of enhancing union visibility, organizing contract and agency workers; enhancing union and social networking; establishing social dialogue mechanisms at various levels, and escalating campaigns for ratification and proper implementation of core labour standards.
There was also wide common understanding among participants that the collective bargaining scale must be taken from plant level to sector level. It was unanimously agreed to continue such strategy meetings on a regular basis.