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Sunday, September 14, 2008

Entrepreneurs, growth and oppressed labour



— G P Baroowah
T
here was a time when industrial development brought in economic development on one hand and on the other ushered in an environment of exploitation of labour. This was the case of entrepreneurship all over the world.In America in the early nineteenth century there were number of factories to pack sardine fish harvested from Monterrey peninsula .In these factories thousands of workers were employed who worked for eighteen hours a day with meagre compensation and no facilities. Today such atrocious duty hours and compensation are unthinkable. The entrepreneurs then made profit out of exploitation. Slowly exploitation of workmen were stopped by legislation and by voluntary efforts of trade union leaders and by liberated entrepreneurs. A time came,in early twentieth century, when workers started exploiting the entrepreneurs through lightning strike, work closures, gheraos and go slow. Entrepreneurs were paid back through their own coins. But later liberated labour leaders and progressive entrepreneurs both understood that exploitation of each other would not really usher in proper development in real sense of the term.The survival of the enterprise is a must both for trade unionism and for entrepreneurs. The history of growth changed from oppression to patronship and ultimately to partnership. Today in the modern world business enterprise survives on the premises of partnership, yet employer and employee relationship remains the focal point of development.


The history of industrialisation in our country also followed the similar pattern The rise and fall of business empire and re-emergence of strong enterprises in Mumbai, Ahmedabad, Chennai and Kolkata strongly reflected the similar pattern. In the employer employee conflict most of the States have been able to come out successfully in the later part of twentieth century. West Bengal had also made strong efforts of late to get out of the mess of industrial relations conflict but is yet to prove itself. What is the scene in Assam now?

Assam remains one of the poorest industrially developed States of the country. Perhaps it is worse than even Bihar. The economic growth rate perhaps is even lower than Nagaland. During the time of independence, our State was the forerunner in contributing substantial GDP of the country. What had happened in twenty first century? After sixties of Twentieth century there was no real development of new industry in Assam.Four industries were set up in Assam when K P Tripathy was the Industry Minister. Calcination, hardboard, chemical and fertiliser and speciality carbon products etc. After sixties, like Bengal, Assam had no real entrepreneurship. Of course tiny enterprise of moulding, re rolling mills, tarpaulin manufacturing battery and hardware products came and went by. But no real manufacturing units came up. During the twenty first century after surviving the mess of terrorism a few entrepreneurs really have taken a serious interest in investing in Assam now. This is the time when industrial scenerio should be calm, empowering and reassuring. The government for the first time, after sixties, has assurance now from local and outside entrepreneurs for solid investment. At this time a new mess has been generated in Assam which is very disturbing.

This is the rise of labour - management conflict. An arrogant trade unionism ( non adhering even to the advice of High Court) with the help of external elements are forcing a non tranquil situation. Management is standing by as an on looker as the matter is sub-judice. The Government actively tried to resolve the conflict. Now, who is responsible for this situation could be a subject matter of debate. But no development is possible in a climate of mistrust, threat and restlessness.

In modern growth theory the enterprise must survive first to take care of not only all the factors of production , but also to share the social responsibility. To see that enterprise survives the conflict of labour and management,two other components of society have became greatly important. They are Government and Judiciary. The arrogance of warring factions has no role in modern growth theory. Bullying of enterprise and blackmailing through unreasonable exercise would lead to no where. The conflict must be resolved rationally for lasting peace in the enterprise.

Assam was really never known for industrial unrest. There were conflicts between management and trade union sometime in the past. Long back in early twentieth century there were conflicts in oil company and sometimes also in individual tea gardens. But never was a time when conflict led to suspension of work for months together. Militant trade unionism was taboo in Assam. Assam’s veteran trade unionists saw to it that all disputes are resolved without arrogance and threat to either party. Recently a number of enterprises went through a process of closure, shutdown, suspension of work or lockout.It is imperative to find out what are the reasons.Is it due to economic reason for non supply of raw material, non availability of power or non availability of capital? Or is it due to the conflict between labour and the management?It would be a sad day if any enterprise has to be closed down due to the conflict of human interest be it exploitation, arrogance and attitude of non work. Two recent incidents of Human Resource Management in Hindustan Lever and Assam Carbon might create boomerang effect on development and growth of Industrial enterprise in Assam. The trend is not healthy. The conflict between management and workmen must be resolved within the law of the land.

Every one must realise that a modern workplace must be developed purely through economic parameters of the modern times.With globalisation, economy of the scale, economy of compensations and economy of the supply chain would rule the roost. Neither militancy , arrogance, indiscipline, lack of skill nor attitude for less work would determine the character of an enterprise. The wind of change has started blowing. It is apparent. In bank, in media and in service sector people are working more number of hours than before handling multi-layers of work. Can manufacturing industry stand alone?

The interference by political process or by social club must be avoided if industrial development is required. The conflict resolution machinery must be upheld . Assam is starving for economic development and without emergence industrial enterprise it would be impossible to solve the unemployment problem. In ten years, perhaps , urban unemployment would be resolved. There would be no educated unemployment in Assam but unless industrial development takes place rural unemployment would bring in crisis in Assam. It would be prudent for all concerned to see that oppression of labour must be removed but reverse oppression should also be taboo.Today the platform must be built for workmen to keep their heads high but the workmen should also perform with modern productivity coupled with discipline behaviour. source: assam tribune

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