India Today Group Online
 


April 09, 2001
Issue


India Today, April 2, 2001

 

COVER
   

Victims Of The Crash Small investors like Girish Patel of Ahmedabad have lost much of their life's savings in the stock market crash. A profile of some middle-class investors who burnt their fingers.

Villains Of The Crash SEBI Chairman D.R. Mehta along with bankers, and brokers must share the responsibility for allowing yet another scam by their acts of commission, and omission.

What's Next For The Economy?
For the third time since 1997, a combination of sliding stock markets, political instability, and global slowdown threatens to turn the hopes of an economic take-off into despair.

 

 
THE NATION
   

Numbed By Disgrace
The BJP, still in shock, begins life after the Tehelka expose with a new president and a combination of hope and bluster. A swot analysis.

 

 
INTERVIEW
   

"I'd choose Musharraf"
Former Pakistan prime minister Benazir Bhutto talks about her relations with her country's politicians, Indo-Pak relations and Kashmir in an interview to Aaj Tak.

 

 
BUSINESS
 

Official Obstacle
Chhattisgarh Chief Minister Ajit Jogi eggs on workers to go on a strike that is adversely affecting production, and profits.

 

 
DEFENCE
 

Fire Fighting
As the Tehelka controversy slows the defence deals, the Government takes steps to revamp the set-up and streamline the weapon procurement system.

 

 
OTHER STORIES
     
 



 
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BUSINESS: BALCO

Official Obstacle

Jogi is the spirit behind the strike that is affecting production and profits.

 

AUTHORISED VANDALISM: The impasse continues with Jogi being firm on his opposition to Balco's privatisation; (below left) the red rally

As the BALCO strike completes a month, it displays all the twists and turns associated with a classic battle between trade unions and the management. Already close to Rs 100 crore have been squandered, another Rs 25 crore worth of profits that a running unit would have made has been lost and no one is any closer to a solution than they were on the day management passed into the hands of Sterlite. The workers are adamant. The management is biding time. The tension is stretched and clearly, somebody's got to give in.

It would have gone either way long ago but for Chief Minister Ajit Jogi. The greatest source of strength for the workers, whose average age is over 50, is his opposition to the Centre's disinvestment of BALCO. "Jogi has assured us that we will win however long the battle,'' says Rajendra Mishra of the joint union of workers opposing the change of management. A delegation of workers has met the chief minister several times with a charter of demands to be forwarded to the prime minister. The basic demand remains the same-Sterlite should not be allowed to hold the majority stake. At the meeting on March 27, the chief minister assured the workers that the PMO is willing to open a dialogue through Governor D.N. Sahay.

Jogi is a clever general. He opened the stakes by raising the issue of Chhattisgarhi pride and wondering whether private parties could be allowed to occupy tribal land. He then upped the ante by increasing the duty on import of bauxite. In the recent budget passed by the state Assembly, the duty has been raised from 10 to 50 per cent. A third of BALCO's supply comes from bauxite mines of Lohadagga in Jharkhand and Katni in Madhya Pradesh. Whoever controls BALCO now will have to factor in the new price.

The management has another worry: finished products lying inside the BALCO compound. Apparently, around 10,000 tonnes of aluminium valued at Rs 70-80 crore is lying inside the factory. The management wants to sell this but is being prevented from doing so by the district administration. The Supreme Court had directed the state Government to provide security to workers and the management and to maintain law and order. Now the district administration through an order of the SDM has prevented the management from moving out any finished product as it may lead to violence if the workers get agitated. And they well might. A host of them are on round-the-clock duty at the three factory gates along with a posse of police constables. This poses a dilemma for the management. Says a spokesperson: "We had already accepted money in advance for the aluminium sheets and now are contract-bound to supply it but the administration won't let us.'' The union leaders on the other hand maintain that the new management simply wants to siphon off everything and declare a lockout.

While Jogi has never been directly vociferous against Sterlite, his administration and colleagues appear to be ensuring that enough roadblocks are erected for the new management. While the issue of tribal land and encroachment upon excess land remains, there are some new angles to consider. Local MP Charandas Mahant has filed a case in the BALCO thana alleging dishonour of the national flag by the new management. As a public-sector unit, BALCO used to hoist the national flag every day but stopped doing so from March 3. It has restarted the practice after the FIR was lodged. Nevertheless, a case has been registered against its Managing Director S. Krishnan.

The management had filed a case in Bilaspur's Labour Court on March 7 contending that the strike be declared illegal and workers be directed to return to duty. Apparently the workers had not given due notice before going on strike. On March 26, the magistrate directed the management to get him directions from the apex court on whether he could intervene in the matter as all the cases are to be disposed of by the Supreme Court. The next date of hearing is April 27.

The communists have grabbed at half a chance the issue presents. Red flags have enveloped the area and union leaders from Visakhapatnam and BHEL have sent donations for continuation of the strike. It all culminated in a big red show of mineral workers in BALCO with AITUC (All-India Trade Union Congress) leader Gurudas Dasgupta addressing the rally. But in the flurry of trade union activities local leaders still appear a little confused. "We want to talk but there is no one whom we can talk to. The Union Government never consulted us, the state Government has limited powers and we do not recognise the new management," says M.P. Mishra of AITUC.

In the battle of egos on at BALCO, the traditional roles are being enacted. The workers-the most susceptible-are bravely adamant, the middle class managers who probably have their heart in the right place but who have their souls sold to their own insecurities and Sterlite chief Anil Agarwal who is probably mulling over whether it will be worth it carrying on business in a hostile state. And holding the all-important key is one man-Ajit Jogi.





 
 
 
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