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BUSINESS: BALCO
Official Obstacle
Jogi is the spirit behind the strike that is affecting
production and profits.
By Neeraj Mishra
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AUTHORISED VANDALISM: The impasse continues with Jogi being firm
on his opposition to Balco's privatisation; (below left) the red
rally
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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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