Posts Tagged ‘India’

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We may be witnessing a watershed moment in India’s labour history.

Advocacy groups in India (all of them home-grown) have pushed for some time to obtain justice for victims of silicosis. This disease is caused by inhalation of dust without protective breathing equipment and causes sufferers to endure constant pain.

It’s sadly very prevalent today in countries lacking high health and safety standards. One industry where it is a problem is in making sandblasted jeans (covered previously). Another is gem-cutting. One small town of  Gujurat state numbers 108 silicosis widows out of its population of 9,000 people. Usually these widows are compelled by economic need to follow their late husbands into the same work. This one village also counted 30 orphans who have lost both parents to the disease in this way.

Unfortunately solution via legislative fiat is not as easy as it sounds. To begin with, the country’s occupational health & safety laws only apply to specific, named industries: mining, manufacturing, ports and construction. That alone wouldn’t be so hard to redress but the majority of India’s workforce is in the informal sector (92% according to the Ashoka website) meaning that laws directed at employers will have no effect on them. Gemstone cutting, for example, is an industry based out of home workshops.

It’s been a long, convoluted journey to get anyone to take action on this issue.

Firstly there was a reporting problem. National figures under-estimated the prevalence of silicosis. Nation-wide – as in other nations – silicosis was being reported as tuberculosis. Public interest advocacy was pursued and successful litigation in the Delhi High Court compelled Employee State Insurance Corporation (ESIC) hospitals to accurately measure the disease’s incidence. Also the National Human Rights Commission started accepting complaints relating to silicosis.

The next step was to litigate for an actual right to compensation. This too was successful however the court, foreseeing the complexities of implementation, asked the state governments to legislate on the matter. To date, one has and two haven’t. Negotiations continue but the governments really have nowhere to run on this issue. It seems workers are on the cusp of securing a historic entitlement.

Even once this is achieved, a further issue is deciding who will pay the insurance premiums and setting up an framework that ensures that the body holding the funds sticks to its purpose and does not simply become a source of funds that gets used for political convenience. ESIC, the insurer for the organised sector, currently runs a surplus of $900 million which suggests either their premiums are too high or they are sitting on a lot of unsettled claims. Activists will tell you it’s the latter.

Meanwhile, the people cutting the gems we see in our fine jeweler’s shops continue to die of this preventable disease.

Dove Shampoo and Acondicionador

Image via Wikipedia

Unilever, the maker of ubiquitous household products including Lipton, Rexona, Lynx, Dove, Omo and Ben & Jerry’s ice cream are being criticised for dragging their feet on labour rights in India.

The IUF is losing patience with the way the company is failing to abide by its historic agreement to recognise the workers union in the state of Assam as a bargaining partner, as detailed on the IUF website.

The company’s actions are a bit incongruous considering what a soft image the company promotes, being a founding member of both the Marine Stewardship Council and the Roundtable on Sustainable Palm Oil.

It seems there was a breakdown of relationships in the Doom Dooma site, with the management locking out the 700 members of the worker-elected union and promoting an alternative association set up in its place by the company.

That was in 2007. The union took the case to Indian court as a denial of the right to free association. At the same time they lodged a complaint under the OECD Guidelines on Multinational Enterprises with the UK Government contact point, asking it to enforce them on the company which is headquartered in London.

The local Indian court in 2010 ruled that a new union election could proceed and an agreement for a ballot was drawn up that July.

This is now a year ago. The company has thus far failed to hold the promised election at which workers can decide whether they want to be represented by their original union or the one sponsored by the company.

Consumers … you know what you can do …

A couple of weeks ago I wrote this post about increased labour unrest in China caused by a reduction in exports. It seems there is more to this story.
At least two commentators, The Economist and China Briefing, believe that China’s Central Government is intentionally allowing this unrest to go unchecked.
Two reasons are suggested. The first is that any anger directed at the foreign multinationals who source goods from China is anger not directed at the Government. This is a speculative claim. The second is more clearly supported by the facts: that China wants the workers to succeed in raising their living standards, even if it means we see less of those low-cost factories churning out goods stamped “Made in China”.
China’s Government naturally wants the country to become more prosperous generally and in the next phase it wants its vast manufacturing sector to increasingly sell goods for the country’s internal market. For that to be possible, average wages have to increase so that Chinese citizens can afford to buy more goods. So if the workers succeed in their claims for higher wages, more power to them.
And succeed they have. Migrant workers wages increased 17% in 2009. In the province of Guangdong the minimum wage was increased 20-21% in 2010 and will increase a further 18.6% in a week’s time, on 1 March. That is a 66% wage increase in just three years. In a few years, Malaysia will be the only developing nation in Southeast Asia with higher wages.
As it stands, China’s minimum wage is already twice as high as India’s and 50% more than Indonesia’s. A survey of buyers of China products who expect to start sourcing elsewhere found that 57% expect to increase sourcing from India.
Meanwhile in Guangdong and elsewhere wages are only half of the story. Conditions of work continue to be highly demanding, with long hours and draconian restrictions on freedom and until those improve we will see more protests.

China's manufacturing hub, soon to be officially one megacity. Image:The Telegraph

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