Trade Union in IT Sector

7/31/2019 Trade Union in IT Sector

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Introduction

One of the Best IT industry in the world

World leading exporter of BPO

Revenues contribute more than 7% of GDP

Total people in IT industry more than 1 million


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Labour Problems in the IT Industry

8 hours working day is only on paper

Not even given leave during national holidays

Atypical workinghours in BPOs

Average attrition of 40 to 60%

Demanding and stressful nature of work

Some companies fire based on performanceHigh AttritionRates

In most cases up to 50% of quoted salaries are garnished

Few long term career paths and bleak promotion opportunities due

to structural hierarchy

Pay structure

and career

Not even appointment order provided in some cases

Unearthly working hours, stress and demand for over exertion

Feeling of insecurity, humiliation and cases of sexual harassments

WorkingConditions


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Exploitation of IT Companies

Allegations of CSC Indiaunderpaying its IT employees inDenmark violating the paystructures set by the Aliens act

Employee who raised the issue

was asked to resign

CSCIndia

Cranes software did not pay thedues to its parting employees

Emails sent to the respectivecontact persons were notattended

CranesSoftware


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Rationale for Trade Unions in IT/ITES

Only industry not governed by laws

No specific modules designed for career growth

Training outside IT not provided

Trade unions will help the industry growth on the whole

Improve Working Conditions and Terms of Employment


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Why Unionization Failed

Worldwide unpopularity of unions Fear of loosing IndiaAdvantage

Unfavorable socio-politico legal condition for union organizers

Growing service sector with low union density and fastertechnological advances

EXTERNAL

Open HR policies giving the feel of flat hierarchy

New middle class increasingly benefitted from private sector andliberalization of economy

Identifies themselves as professionals (white collar workers)

High attrition, unusual working hours etc makes it hard for unionsto organize

INTERNALOrganizationaland Contextual

Trade unions despised as they were related with slow growth pre-liberalization

Attracted middle class youth who were educated and enjoyed thestatus

Associate with upward mobility, classy clothes, offices and

international exposure

INDIVISUALDISPOSITION


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Negative effects of Trade Unions

Trade Unions, considered one of the influential among the world, have also beenblamed for stagnating the industrial growth. They have misused their influence overworking class, to address their political motives. Strikes, lockouts etc. have been aroutine in Indian industrial sector.

Allowing Trade Unions having political allegiance into IT Industry where time,punctuality, efficiency is quintessential must be done carefully. An impact of strike willlead to loss of credibility of the Industry leading to loss of business which will have acascading effect on the whole economy.

Besides, trade unions having political allegiance may try to impose their ideology and

agenda into the industry which may create friction in the industry.

IT Industry works round the cloak 24/7. Any Union activity is also bound to affect thequality of work, as an employee pays his attention to union activity also.


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West Bengal Information Technology Association

The stand of the association in certain matters is crucial. They are:

Issuance of appointment letters with well defined terms and conditions of service

48 hour weekly work schedule , Compliance with CPF and other statutory amenities

ESI facilities when ever applicable

Registration as Principal Employer with the Department of Labour, West Bengal, where employees areengaged through contractors

Objectives

To render benevolent service for sustainable development through propagation

Exchange of information related to better living condition for mankind

To render cyber space accessible to lower strata of the population

An IT trade union affiliated to CITU in 2006


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UNITES- the Union for IT & IT Enabled Services

UNITES was established in September 2005 in Bangalore withthe support from UNI Global Union-a global union for skills andservices with 20 million members in 900 unions across theglobe.

It is dedicated to create a distinct and cogent link between

employers & employees at all levels.

It takes up cases of individuals in issues like loss of job,harassment, discrimination and raise the issues in order to get

justice

Spreads awareness of employee rights through variousconferences, monthly newsletters, training sessions andworkshops

Works in collaboration with UNI and SASK to serve the intereststhe interests of IT and ITeS sector


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International trade Unions :PROSA (Denmark)

Membership

Benefits

LegalAdvice

Job andcareer

Planning

Competencedevelopment

Events andDebates

DiscountsandSpecial

benefits


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PROSA Active Areas

Fighting thelegalisationof softwarepatents in

Europe

Arguingagainst

increased useof privacyinvading

technologies

Supportingthe right tofreely useencryption

technologies

Advocatingthe use of

openstandards ingovernments

IT system

Supportinggood

standards fordata

protectionallowing

privacy for

citizens


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Need for Central Legislation

Central government must take the following measures: Recognition of Trade Union Activity within the Industry

Regulation and fixation of maximum working hours for an IT industryemployee. It may vary from 48-60 hours a week depending upon thesize, number of commitments/ contracts by a company

Guarantee from the Trade Union so recognized that no disruption ofwork should be undertaken on their part, which detrimentally affectthe Firm/Company/Industrys capability to honour its contractualobligation to its customer (both domestic and internationalcustomer). If they resort to such activities with out credible and

sufficient cause, then they shall make good the lose suffered by theemployer

Job security to the IT/BPO workers

Sick leave/maternity benefits etc to the workers

ESI facilities to them when ever applicable.


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Quotes from the Industry

A union for IT workers is the urgent need of the hour. I would call the IT professionals 'the labourers of the

information age.' They toil long hours; they work at night; and some of them still get meagre salaries. So alabour union for them would help fight for their rights - CITU President M K Pandhe

IT industry professionals in India are 'cyber coolies.' We are trying to organise them and convince them onthe need to form a union to fight for their rights and jobs protection.- Union of Network International

Employees in IT and ITES sector do not need any external intervention as they are looked after very well. Itis not a good move and I don't think it would succeed. The employees who think of themselves as theCEOs of the future may not support it - Kiran Karnik, President, Nasscom

I have no problems with a union in the BPO industry, as long as it guarantees that no employee will leavethe organisation before one year. The union should work with the BPO industry to control the menace of

attrition.- Raman Roy, ex-CEO, Wipro BPO

The move to unionise workers is a retrograde step and would spell disaster for the industry. After havingreached this level, any attempt to unionise the workers would set us back.-Prosenjit Ganguly, Head (HR),HTMT, a BPO firm


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Trade Union in IT Sector

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