Demonstration Against FDI in Retail Trade at Vellore

Poster By Vellore Division against FDI in Retail Trade

Unitedly Resist FDI in Retail - CPIM STATEMENT

 

The CPI (M) strongly opposes the cabinet decision to allow FDI in multibrand retail. It will destroy the livelihoods of crores of small retailers and lead to monopolization of the retail sector by the MNCs. Coming in the backdrop of persistent high inflation, growing joblessness and agrarian distress, this decision shows the utterly callous and anti-people character of the UPA Government. The Government seems to be more eager to meet the demands of the US and other Western governments and serve the interests of the MNCs like Walmart, Tesco and Carrefour, rather than protect those of its own people.

 

The conditions imposed by the government are insignificant and will not provide any effective safeguard to any section. The investment floor of Rs. 520 crore (100 million USD) is insignificant for giant retailers like the Walmart, Tesco, Carrefour etc. which are multibillion dollar companies. The restriction of foreign retail outlets to cities of over 10 lakh population is also meaningless because those are precisely the places where the MNCs want to go, to tap the lucrative segment of the market. The big cities are also where small retailers are mostly concentrated.  

 

India has the highest shopping density in the world, with 11 shops per 1000 persons. There are over 1.2 crore shops in India employing over 4 crore persons. 95% of these shops are run by self-employed persons in less than 500 sq.ft. area. These small shopkeepers in the urban areas are going to be hit the hardest with the entry of the MNC retailers. International experience shows that supermarkets everywhere invariably displace small retailers. Small retail has been virtually wiped out in the developed countries like the US and Europe. South East Asian countries had to also impose stringent zoning and licensing regulations in order to restrict the growth of supermarkets, after small retailers were getting displaced.

 

The condition for making at least 50 per cent of the investment in ‘backend’ infrastructure is being cited to argue that this would lead to more cold chains and other logistics, benefiting the farmers. International experience has, however, shown that procurement by MNC retailers do not benefit the small farmers. Over time, they receive depressed prices and find it difficult to meet the arbitrary quality standards. Allowing procurement by MNCs is basically an attempt by the Government to whittle down its own procurement responsibilities. This will have an adverse impact on food security.

 

The small manufacturers will also get squeezed. Predatory pricing by the MNCs will eliminate competition and establish their control over the supply of a range of commodities, including essentials like food. The domestic market will get flooded with goods procured from foreign countries. The claim that this will bring down retail prices for consumers is utterly bogus. Greater monopoly power and storage capacity for the big corporates will rather promote hoarding and profiteering.

 

Over the last several years the MNCs involved in cash and carry trade in India, which had been permitted earlier by the Government, have routinely violated the prohibition of directly selling to consumers, but the Government did nothing to stop them. Similarly, the so-called regulatory measures based on a system of self-regulation will also be inconsequential, especially since there is no mechanism to ensure the enforcement of the conditions.

 

The MNC retailers and foreign governments have been pressurizing the Centre for opening up this sector since long. It was the opposition from the Left Parties, which had prevented the UPA-I government from taking this move. The UPA-II government has now fully succumbed to those pressures from vested interests.

 

The CPI (M) calls upon all sections of the people and political parties to jointly oppose this move. The Polit Bureau of the CPI (M) calls upon all its Party units to organize protests against this anti-people step and defend the crores of small retailers and their families, whose livelihood is under threat.

SUPPORT   THE  TRADER'S  STRUGGLE ON 01.12.2011
 

LIC ACT AMENDMENT BILL MAY BE PASSED THIS WEEK. PREPARE FOR ONE DAY STRIKE

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

        LIC BUILDING  SECRETARIAT ROAD  HYDERABAD  500063

Email: aiieahyd@gmail.com

      

PRESIDENT:                                                                                                             Phone: 040-23244595

AMANULLA KHAN                                                                                          040-23244596

GENERAL SECRETARY:                                                                                             Fax:     040-23244597                                                                                                                                              

K VENU GOPAL      

28^th November 2011

To all the Zonal/Divisional Units in life sector and

Secretary, Standing Committee (GI)

Dear Comrades,

As per the Parliamentary website update on debates, the Parliamentary Affairs Minister, Shri Pawan Kumar Bansal on 25^th November 2011, placed in Lok Sabha,  the business to be taken up during the week commencing 28^th November 2011 which included:

Consideration and passing of the following Bills: -

(a) The Constitution (One Hundred and Eleventh Amendment) Bill, 2010.

(b) The Life Insurance Corporation (Amendment) Bill, 2009.

(c) The Cable Television Networks (Regulation) Amendment Bill, 2011.

(d) The Petroleum and Minerals Pipelines (Acquisition of Right to User in Land) Amendment Bill, 2010.

We request the units in LIC to be in readiness for an immediate strike action incase the Government, ignoring the recommendations of the Standing Committee on Finance,  gets the LIC (Amendment) Bill 2009 passed in the Parliament to the detriment of the interests of the policyholders. As per the decision of the AIIEA Secretariat, the units in General Sector will hold solidarity demonstrations on the day the LIC employees observe the strike action on this issue.

Comradely yours,

Sd .. K.Venugopal

General Secretary

A.I.I.E.A SECRETARIAT DECISIONS

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500063

Cir. No.11/2011                                                                             23^rd November 2011

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

AIIEA SECRETARIAT DECIDES

• Strike actions against Insurance Reforms Bills
• Constitutes Charter Sub-Committee
• Demands immediate solutions to the problems relating to

      Housing Loan and the E Feap

The Secretariat of AIIEA met on the 19^th November 2011 At New Delhi as scheduled.  Com. Amanulla Khan, President, AIIEA, presided over the meeting of the Secretariat.

The Secretariat reviewed the struggle against privatisation, including the latest campaign by the units of general sector on the issue of merger of four companies, amidst the government moves to speed up the process of reforms. The Government has listed the LIC Act (Amendment) Bill 2009 and PFRDA Bill for discussion and passage in the winter session of Parliament. This is a serious situation warranting a matching action from the organisation.

It may be recalled that the Parliamentary Standing Committee (Finance) in its unanimous report submitted to the Parliament on 12^th March 2010 said that while increase in the Capital from Rs.5 crores to Rs.100 crores may be allowed, any further raise in the Capital in excess of Rs.100 crore, if and when required, may be provided by moving an amendment to this effect in the Principal Act governing LIC through parliamentary appropriations. As can be seen, the Standing Committee rejected the proposal for future hike in the Capital through government notification.

The report also ruled out any change in the pattern of surplus distribution and recommended the retention of existing pattern of 95% surplus to policyholders and 5% to the government. Further, the report also noted that as sovereign guarantee is the key to LIC’s pre-eminent position in life insurance business, the considered view of the Committee was that this stature bestowed on LIC by Parliament should not be diluted in any manner under the pretext of providing a level playing field in the insurance sector.

 

AIIEA in its Circular 10/2010 of 14^th March 2010 while congratulating the employees on this development had cautioned that:

“The Report of the Standing Committee has vindicated the stand of the AIIEA.  We expect that the Government would accept the suggestions and recommendations of the Committee in the best traditions of democracy. But our experience suggests that the Government may not stick to democratic norms when it is inconvenient for them.   Therefore, we need to keep our vigilance and continue our campaign against the further liberalization of insurance sector without any let up”.

It now appears that our assessment of the character of the government is absolutely correct. According to the informed sources, the government is unlikely to accept the recommendations of the standing committee and is determined to push through the legislation without much change.  This clearly indicates the democratic deficit in the governance and its overriding commitment to neo-liberalism and privatisation.  This Bill, we hold the opinion is the first step towards privatisation of LIC and therefore demands a strong response from the organisation. Hence, the Secretariat reiterated the decision of the Diamond Jubilee Conference of AIIEA that the LIC employees would observe a flash one day strike in the event of the passing of the Bill in the Parliament to the detriment of the policyholders’ interests and public sector LIC. 

This democratic deficit is also seen in the PFRDA Bill as approved by the Cabinet for passing in the Parliament.  While clearing the bill for passing, the Cabinet set aside all the major recommendations of the Standing Committee, viz.,

1)    that the return on investment should be guaranteed

2)    FDI limit should be specified in the Act so that any proposal for increase should be brought before the Parliament

3)    Multiple withdrawals should be allowed to suit the needs of the employee/worker

Government did not want to guarantee any minimum return, FDI limit in the Pension Sector can be increased through an executive notification and withdrawal can only be once under very pressing circumstances. The Secretariat decided to support the planned struggle of the government employees on the PFRDA Bill and decided to hold protest demonstrations in case the Bill is passed by the Parliament.

Similarly, the government is also in a hurry to pass the Insurance Laws (Amendment) Bill which aims at increasing the FDI limit to 49% and to allow disinvestment of the PS General Insurance Companies. The Standing Committee is being coerced to submit the Report on this legislation early.  In the meanwhile the multinational corporations have also been impressing the Prime Minister to speed up the hike in foreign equity in insurance. 

In a letter dated 15^th November 2011, Insurers’ Associations from USA, UK, Canada, Europe, Japan and Australia urged Prime Minister Manmohan Singh “to take into account the relevant short and long term benefits of raising the FDI limit and permitting the establishment of branches by foreign reinsures and act accordingly”.  A government totally committed to neo-liberalism is too willing to oblige. In this context, the Insurance employees should be ready to meet the challenge.  The Secretariat decided that in the event of the Bill being passed the insurance employees, both in life and general sector, should respond with a powerful strike action and bring it to the notice of the people of the country the intentions of the government to privatise the hard earned savings of the people.

The Secretariat decided that in all offices of LIC and PS general insurance companies there shall be powerful demonstrations during lunch recess on 22^nd November 2011, the first day of the winter session of the Parliament, opposing the government’s moves.  This programme was successfully implemented across the country. Press releases issued by various units were widely covered in the news papers taking this activity to the people.

 PROBLMES RELATING TO HOUSING LOAN AND e-FEAP

The Secretariat demanded LIC management that the issues relating to Housing Loan particularly in regard to calculation of EMI and subsidy should be resolved without further delay so that the benefit of the improvements are passed on to the employees. 

The issues relating to eFEAP were also discussed.  While AIIEA appreciated the need for modifying the present feap to meet the organisational needs in tune with the heavy increase in the number of policies, AIIEA demanded that the problems thrown up in the process of introduction of eFEAP should be resolved on day to day basis without inconveniencing the policyholders and the agents. For this, the CO or ZO can take control of the systems in the divisions during the phase of introduction so that day to day progress can be directly accessed. Secondly, training for the programmers and the users in the departments also should be upgraded with the inputs secured from various branches.  The minimum check list for the programmers and the users in the departments should also be made out.

CHARTER SUB-COMMITTEE CONSTITUTED

The Secretariat also noted that the next wage revision falls due on 01-08-2012.  The Secretariat decided to submit a Charter of Demands reflecting the aspirations of the employees at the appropriate time.  With this understanding, the Secretariat constituted a Charter Sub Committee with Com. V. Ramesh, Joint Secretary, AIIEA as the Convener, and the Secretary, Standing Committee (GI) and the General Secretaries of Zonal Units in life sector as the members. The President and General Secretary of AIIEA will be ex-officio members of the sub-committee.

The Secretariat also reiterated its earlier decision that the issues relating to pension should be focussed, if necessary, through a direct action of the employees.

The Secretariat of AIIEA also noted the possibility of a joint campaign on the common issues with the unions in insurance and banking sectors.

The Secretariat was unanimous in its understanding that the present situation is favourable to the struggles of the working class.  The working class is uniting and launching struggles across the world against neo-liberalism and barbarities of capitalism. The “Occupy Wall Street” movement in the USA and protests in nearly a 100 countries in all continents is an indicator of the people’s anger against the neo liberal policies emanating from the very country where capitalism was regarded as the only alternative. The very same media which initially termed these demonstrations as anarchic has now to sit up and take notice because of participation of large number of people in these movements. 

The Secretariat noted that the call for Jail Bharo on 8^th November 2011 given by the Workers’ Convention held at Delhi was a massive success with several lakhs of workers courting arrest demanding attention of the government and solution to their demands. The Secretariat expressed confidence that with a large unity developing in India among all the Trade Unions, the voice of protest against the policies of privatisation, price rise, unemployment and others is definitely going to become stronger in the days to come.  The Secretariat called upon the insurance employees to be rightful and proud partners in the struggles chalked out jointly by the Trade unions in protecting their industry and in fighting on the people’s issues. Let us embrace the struggles with confidence in the fact that the future belongs to the workers.

Comradely yours,

Sd.. K.Venugopal 

General Secretary.

FLASH MESSAGE FROM A.I.I.E.A ON PLLI

We  herein below reproduce  the message received from
Com K.Venugopal, General Secretary, A.I.I.E.A 

" GOVERNMENT  CLEARED EX GRATIA IN LIEU OF BONUS

TO L.I.C  AND  GENERAL  SECTOR  EMPLOYEES. LIC OFFICIALS

PROMISED TO ISSUE INSTRUCTIONS TOMORROW.

L.I.C  IS ALSO GOING TO ISSUE PLLI  PAYMENT  INSTRUCTIONS

TOMORROW. YOU  MAY  VISIT  INTRANET  FOR  THE  SAME

TOMORROW 

                                      - - - - - - K.VENUGOPAL

 

AIIEA WRITES TO M.D ON P.L.L.I

           ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

        LIC BUILDING  SECRETARIAT ROAD  HYDERABAD  500063

Email: aiieahyd@gmail.com

      

PRESIDENT:                                                                                                             Phone: 040-23244595

AMANULLA KHAN                                                                                          040-23244596

GENERAL SECRETARY:                                                                   Fax:     040-23244597                                                                                                                                           

K VENU GOPAL      

21^st November, 2011.

Shri A.K.Dasgupta,

Managing Director,

LIC of India,

Central Office,

Mumbai.

Dear Sir,

Payment of PLLI & Ex-gratia in lieu of Bonus

PLLI

We understand that the process of calculation of PLLI for the current year has started some days ago.  But the instructions for payment of PLLI are yet to be released by the Central Office. 

We request you to release the instructions at the earliest so that the benefit reaches the employees without further delay.

Ex gratia 

Normally the instructions for payment of exgratia in lieu of Bonus were released at least before Diwali.  But this year there has been delay in this process.

We understand that the instructions for payment of ex-gratia in lieu of bonus are pending for quite some time for want of clearance from the Fianance Ministry. We request you to follow-up with the Ministry and ensure early payment to the eligible employees.

Thanking you,

Yours faithfully,

Sd .. K.Venugopal

General Secretary.

Release of Book on Wage Revision Struggles - At Vellore on 18.11.2011